Financial Abuse
Financial abuse is often the first sign of domestic violence, yet many people are unaware of it. Financial abuse is the control of a person’s ability to make, spend, and otherwise manage money. While some people may feel that financial abuse is less serious than other forms of domestic violence, financial abuse can be as dangerous and damaging. Financial abuse is also often paired with psychological, physical, or other forms of domestic violence. In fact, research suggests that financial abuse occurs in almost every case of domestic violence (National Network to End Domestic Violence). Being aware of financial abuse and its warning signs can help prevent or identify an abusive partnership.
While financial abuse can look different in different situations, perpetrators often use the same tactics to control their partner’s finances. Many perpetrators manipulate their partners into giving them control. They might frame it as a good thing, saying things like, “I know you worry about money, so why don’t I handle it for you so you don’t have to worry about it anymore?” Or, they could demand, intimidate, or threaten their partner into letting them control their finances.
There are also different ways in which the perpetrator may control their partner’s finances. It could be that they do various things to affect their current job. These may include:
They may do things like causing or forcing their partner to be late to or to miss work.
They may sabotage equipment, clothing, or materials their partner needs for their job.
They could directly manipulate or force their partner into quitting their job.
The perpetrator may also financially abuse their partner by directly controlling their financial accounts.
The perpetrator may steal their partner’s money.
They could maintain control of their partner’s accounts and deny them access.
The perpetrator could also control their partner’s non-monetary assets, like their property, vehicle, expensive jewelry, antiques, or anything else of value.
The perpetrator may also create budgets, which limit and control how the partner may spend money.
Partners might be banned from spending money in a certain way, over a certain amount.
They might also be manipulated or forced into recording and disclosing their spending habits.
Perpetrators may also do a number of other things not listed here to control their partner’s ability to make, spend, and manage their own finances.
Regardless of how financial abuse occurs, the effects can be extremely damaging and long-lasting. Financial abuse is one of the most common reasons survivors of domestic violence cannot leave the perpetrators. It is also one of the most common reasons survivors return to their perpetrators. This can leave survivors vulnerable to continued domestic violence. Financial abuse can prevent survivors from paying important bills, affording housing, and/or affording food and other essentials. It can also damage a survivor’s credit, which can prevent them from getting housing, loans, and more for several years. They may also be in debt, whether from their abuse or from the challenges of leaving their abusive relationships. Not only can having extensive debt cause them financial difficulties while they pay it off, but it could also further damage their credit score or prevent them from getting loans in the future.
Additionally, not only do survivors of financial abuse have financial impacts, but it is important to remember they may also experience impacts on their mental health. Many survivors of financial abuse experience emotional distress as a result. While this varies for every person, traumatic events like financial abuse may lead to clinical depression, anxiety or panic disorders, and/or post-traumatic stress disorder. Survivors may also experience difficulty forming and maintaining healthy relationships, or difficulty regulating emotions. Abuse also commonly leads to substance abuse disorders. Some survivors may also experience thoughts or actions of self-harm and/or suicide. It is important to reach out to mental health professionals to help with these experiences. Mental health care can help alleviate survivors’ emotional distress and improve their quality of life.
Suicide is an emergency. If you or someone else is in immediate danger, call 911 immediately. Do not wait. For other help regarding suicide, call the National Suicide Prevention Lifeline (available 24/7) at 1-800-273-8255 or text 741741.
For those looking for support due to financial abuse or other forms of domestic or sexual violence, please know there are resources available on Survivors.org. We believe you and are here to support you!
Written By: Isabel Greenstein, PAVE’s Fall 2021 Outreach Intern
Sources:
Center for Financial Security
National Network to End Domestic Violence
The Financial Conduct Authority
American Psychiatric Association
