Financial abuse (also called economic abuse) occurs when one partner in a relationship controls access to money or information about finances. Perpetrators often use money as a tool to exert dominance, leaving victims financially vulnerable and emotionally trapped. This control can manifest in various ways, including restricting access to money, forbidding the victim from working, or coercing them into financial dependency. They may not allow their partner to get a job; or control spending on household necessities such as food, rent, monthly bills, and school tuition.
What does financial abuse look like?
Jill is a very responsible person, but her husband doesn’t allow her to have any credit cards in her name. He allows her the use of a debit card that he controls, and only for gas and groceries. She must go to him for permission for all other purchases, and he requires a receipt for everything. Jill’s paychecks are directly deposited into his bank account, but she has no access to the money.
Jill doesn’t understand that she is experiencing a form of domestic abuse, because while her husband may have yelled and gotten angry, but he never hit her. She is not experiencing physical abuse, but she is being abused.
How common is financial abuse?
According to the National Network to End Domestic Violence, research shows that financial abuse occurs in 99% of domestic violence cases. Economic abuse is used by those who abuse to keep a survivor trapped in an abusive relationship. Survivors report that worry over money and providing for their children is one of their top reasons for staying in or returning to an abusive partner. They are not financially secure, don’t have anywhere to go, and do not want to live in a shelter.
What are the warning signs of economic abuse?
There are common methods that abusers use to gain financial control over their partner. These include:
Controlling Finances
The abuser takes control of all economic decisions, including access to bank accounts, controlling credit cards, and handling income.
Forbidding Employment
Victims of abuse may be prohibited from working or forced to quit their jobs, leading to financial dependency on the abuser.
Sabotaging Employment
Financial abusers may intentionally sabotage their partner’s job by causing disruptions at the workplace or pressuring them to resign.
Monitoring Spending
Constant scrutiny over every penny spent, criticism for financial decisions, strict allowance or withholding funds for the victim or children to obtain basic needs such as food and medicine.
Withholding Financial Information
Victims are often kept in the dark about the family’s financial situation, making it difficult for them to make informed decisions.
Committing Fraud
Forcing the victim to write bad checks, filing fraudulent tax returns, overspending or running up large amounts of debt on joint accounts. Stealing the victim’s identity, property, or inheritance.
What are the consequences of economic abuse?
Financial abuse, like all forms of domestic abuse and intimate partner violence, is about power and control. Money is the tool that those who abuse use to maintain control. Survivors face a myriad of challenges, including:
Limited Independence
Economic abuse restricts a person’s ability to make independent choices, trapping them in a cycle of dependence.
Isolation
Survivors may become socially isolated as they are cut off from their support networks, leaving them without a safety net.
Emotional Toll
The constant stress of financial insecurity can lead to emotional distress, anxiety, and depression. Financial abuse is also emotional abuse.
Barriers to Leaving
Financial dependence can create significant barriers to leaving an abusive relationship, as survivors fear the economic consequences of breaking free.
How do I start over after experiencing financial abuse?
These steps should only be taken if it’s safe to do so, that is, if you can do them without raising the suspicion of your abuser or putting yourself in added danger.
Here are some suggestions from our therapists at SHALVA:
- Protect your personal information: Contact your bank and credit card company and ask them to change your account information, including your PIN and access codes. Once you have changed these, do not share them with anyone else.
- Access your credit report: Find out more about your financial situation by requesting a free credit report from annualcreditreport.com. Doing this will allow you to see if your abuser has opened up other accounts or lines of credit in your name.
- Prepare for the future: If you cannot leave your abuser immediately, you can take steps to prepare for the future. Open a new account and hide cash where your abuser cannot find it.
- Find support: Talking to trusted loved ones can provide support, care, and encouragement. Loved ones may also offer resources, such as housing and financial support if you decide to end the relationship.
What if I’m not sure if I’m experiencing financial abuse?
If you feel like your money and spending is being controlled by your partner, but they can spend money however they like, you may be experiencing financial abuse. Even if you aren’t sure what is happening, SHALVA is here for you. Call our office at 773-583-4673 and we can help you figure it out.
