None of us go into a relationship thinking that we’ll encounter some form of abuse, especially when it comes to how we earn and spend our own money. However, there is clear evidence that instances of financial abuse are increasing.
The UK charity Surviving Economic Abuse estimates that one in five women have experienced this form of domestic abuse within the last 12 months. The insurance company, Aviva, backs this up with research suggesting that two in five British adults have suffered from some form of financial or economic abuse. Most of those cases are related to a partner’s or former partner’s behaviour.
Financial abuse is a form of coercive control. It leaves victims with limited access to money, with their abuser taking over how their finances are accessed and used. In practice, it extends beyond a partner saying what should and shouldn’t be purchased. It could see that person spending the victim’s money without their authorisation, taking out loans or credit cards in their name, or even preventing them from accessing transport to work or seeing family members.
In more extreme cases, it could see the victim pressured into making their abuser the beneficiary of their will.
What are some common indicators that may suggest someone is experiencing financial abuse?
The signs of financial abuse can be subtle, but there are some indicators that suggest someone may have lost control of their finances to someone else.
Common red flags include:
- Having to report all purchases made or needing to ask permission to spend money
- Suddenly not having the money to make regular purchases
- An unexpected change in their living conditions
- A change in their working hours or type of work carried out
- Selling items unexpectedly
- Being unable to pay bills that have previously been managed
- A new person being added to the victim’s bank account
- Someone else using the victim’s debit or credit cards or writing cheques in their name
- Unusual spending activity, such as purchasing expensive clothing, holidays or other items which are out of character
- A sudden change to a will or the addition of a new beneficiary
- The partner of the victim unexpectedly has more money or is buying much more than they have previously
- Changes in communication frequency with friends and family members
- New credit or debit cards or loans being taken out in the victim’s name
- Large debts building up which are out of character for the victim
How does financial abuse differ from other forms of abuse?
When we think about domestic abuse, we often call to mind more overt instances of abusive behaviour. This could be physical violence, which results in visible bruising and other injuries, or shouting and verbal insults, which leave the victim cowed or humiliated.
Much like controlling or coercive behaviour, financial abuse is more insidious. It can begin slowly and with seemingly minor actions, making it harder to identify. The abuse may build over time, with the victim slowly isolated and increasingly controlled. They may not know they are being manipulated, meaning that person is drawn into an abusive relationship before they release what’s happened.
Financial abusers will hold a great deal of control over their victims. They isolate that person by preventing access to the money that would make it possible for them to leave or seek help. This isolation makes it much harder for other friends and family members to recognise the signs of abuse and step in and help.
What steps can someone take if they suspect they are experiencing financial abuse?
Financial abuse is a crime and is recognised by the Domestic Abuse Act 2021. If you suspect that you’re experiencing financial abuse, you can file a police report about the abuse. You can also seek legal advice from a family solicitor with experience in domestic abuse or reach out to a charity such as Women’s Aid for support.
A family solicitor will be able to advise on the next steps to obtain legal protection from your abuser. This could include applying to the courts for an injunction, such as a Non-Molestation Order.
If you lose access to your bank account or if money is being taken from your account without your permission, you should also contact your bank as soon as possible. Many banks adhere to a Financial Abuse Code of Practise, which means they will understand the signs of financial abuse and have processes in place to help you regain access to your money.
If you’re concerned that you’re experiencing financial abuse, we can provide legal support and guidance. Contact us to discuss your situation in confidence with a member of our team.
