Recognizing Financial Abuse: What It Is and How to Spot It
Key takeaways:
Financial abuse occurs when one person controls another person’s access to financial resources or their ability to provide for themselves. It often takes place in romantic relationships but can occur in other types of relationships as well.
While it can be hard to spot, financial abuse is a serious form of harm. Over time, it can escalate into other forms of domestic violence.
If you or someone you care about is facing financial abuse, know that help is available. Contact the National Domestic Violence Helpline for support.
Unlike some other forms of abuse, financial abuse can be difficult to detect. It occurs when one person controls another person’s access to financial resources or their ability to provide for themselves. This imbalance of power leaves the victim financially dependent on the abusive person.
Like other types of abuse, financial abuse is characterized by a desire for control. And while it’s often linked to romantic relationships, financial abuse can occur within all kinds of relationships.
What is considered financial abuse?
Financial abuse is any purposeful behavior that erodes someone’s financial independence. It involves limiting someone’s ability to access financial resources. The abuser may also limit the victim’s ability to make, spend, or save money. These restrictions keep the abuser in control and make it extremely difficult for the victim to leave the relationship.
Quiz: Is my relationship toxic?
Examples of financial abuse
Financial abuse can take many forms, depending on the relationship. But here are some common examples:
Refusing to allow the victim to work
Doing or saying things that cause the victim to lose their job or miss out on employment opportunities
Refusing to allow the victim to attend training, classes, or other job-focused events
Prohibiting access to bank accounts or other financial information
Maintaining control of all spending
Not including the victim in decisions with a major financial impact
Providing an independent adult with an “allowance”
Manipulating the victim into doing fraudulent things (such as tax evasion or filing false insurance claims)
Taking out debts in the victim’s name
Preventing the victim from accessing funds for basic needs and household expenses
Failing to contribute to any bills or household expenses
Stealing the victim’s financial assets
Concealing assets or lying about their value
Forcing the victim to work without compensation
Making financial decisions that ruin the victim’s credit
Refusing to pay for previously agreed-upon expenses (like child support)
Warning signs of financial abuse
Often considered a more “silent” form of abuse, financial abuse can be difficult to detect. But the following are common warning signs:
Lying to friends or loved ones about your financial situation (such as saying you forgot your wallet when you can’t pay for something)
Not being able to afford basic necessities even though you have a job
Having to borrow money (and conceal it) to afford basic necessities
Not having access to joint accounts
Having your earnings or wages go directly into an account you can’t access
Not having a clear picture of your financial well-being because your partner won’t share any details with you
Feeling that you’re not “allowed” to spend money on certain things or without permission
Sincerely wanting to work but being prohibited from doing so
Feeling like you can’t attend social events that require you to spend money (even something small such as meeting a friend for coffee)
Hiding your spending from your partner
Having extreme anxiety about money and frequent financial conflicts with your partner
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Why does financial abuse happen?
Financial abuse is a complex issue that can have many underlying causes. But at its core, financial abuse is about an abuser’s desire to maintain power and control over their victim.
In losing their financial freedom, victims often become trapped in abusive relationships. Their financial dependence on their abuser leaves them unable to maintain control of their lives.
Is financial abuse related to domestic abuse?
We need more research to better understand the underlying factors that lead to financial abuse. But one thing is clear: The vast majority of domestic violence survivors experience financial abuse in their relationships.
In addition, a 2014 study found that 78% of Americans don’t recognize financial abuse as a form of domestic violence. These statistics underline the critical need to understand financial abuse better and to create greater access to support for victims.
Where to get help for financial abuse
If you or someone you care about has experienced any of the warning signs listed above, know that you’re not alone and that help is available.
To get help for financial abuse, you can begin by learning more about it and the various ways it can manifest. From there, you can put together a safety plan by taking steps such as:
Opening your own bank account that your partner cannot access
Setting up notifications with your bank or financial institution in case someone tries to access your accounts
Letting a trusted family member or friend know what’s going on and asking them, if possible, to keep money or any financial assistance you receive
Making a list of jointly owned assets and taking photos of any documentation that signifies joining ownership
For confidential support for financial abuse, contact the National Domestic Violence Helpline. You can reach them 24/7 by dialing 1-800-799-SAFE(7233). They can also help you find legal help and local resources in your community.
In addition, many other organizations offer financial resources for domestic violence victims. These include:
The bottom line
While it can be hard to spot, financial abuse is a serious form of harm used to exert dominance and control. It can escalate into other forms of domestic violence and leave victims without financial independence However, awareness of financial abuse is increasing. And victims have more access to the support they deserve. If you need help, check out the National Domestic Violence Helpline.
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References
National Domestic Violence Hotline. (n.d.). Create your personal safety plan.
National Domestic Violence Hotline. (n.d.). What is financial abuse?
National Network to End Domestic Violence. (n.d.). About financial abuse.
National Networks to End Domestic Violence. (n.d.). Financial abuse fact sheet.
Postmus, J. L., et al. (2011). Understanding economic abuse in the lives of survivors. Journal of Interpersonal Violence.
Surviving Economic Abuse. (n.d.). I need help.
Surviving Economic Abuse. (2021). Spotting the signs: A guide for friends and family.
WomensLaw.org. (2021). Financial abuse.
