Financial Abuse

Abuse is the act of causing harm or distress, in an attempt to exert control, especially for one’s own advantage or pleasure. Financial and economic abuse is when someone controls another person’s ability to make, spend, and otherwise manage money. Research shows that an estimated 94% of survivors of intimate partner violence experience financial and economic abuse1, yet 78% of Americans do not consider financial and economic abuse to be a form of abuse at all2. No form of abuse is “worse” or “better” than another, but financial and economic abuse is unique in that it makes it both difficult to leave an abusive relationship3 and causes many survivors to return to the relationship once they’ve left 4. Aside from the mental and emotional impact of the abuse, financial and economic abuse can continue to impact a survivor’s life far past the end of the abusive relationship.

There are many ways someone can financially and economically abuse someone else. The examples given here are intended to just give an idea of the different ways financial and economic abuse can present itself in a relationship. 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. In other words, if a situation related to financial power and control isn’t mentioned here, it doesn’t imply that it isn’t a valid form of abuse.

Many perpetrators manipulate and/or coerce their partners into giving them control. For example, they might frame the control as a positive or a task they are taking on in the relationship by saying things such as, “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?” Additionally, they could demand, intimidate, or threaten their partner into letting them control their finances. Financial abuse can manifest in various ways depending on the circumstances, and it frequently occurs alongside other types of domestic violence. Perpetrators often use the same tactics to control their partner’s finances. 

Someone can inflict financial abuse by limiting access to funds or how money can be spent in a way that makes it difficult to meet needs. This type of financial and economic abuse can look many different ways, such as:

  • Not allowing access to shared accounts
  • Transferring money from shared accounts to personal accounts without consent
  • Monitoring spending and lashing out for reasonable expenses
  • Hiding or destroying debit, credit, or ATM cards
  • Deciding when/how all money will be used
  • Coercing someone into acts, sexual or otherwise, in exchange for access to finances
  • Giving allowances of shared money that make it difficult to meet basic needs

How money is spent can be a difficult conversation, particularly in intimate relationships. While it’s necessary to set boundaries to limit excessive spending and ensure that money is being spent where it’s most needed, neither partner should be afraid to spend money on expenses and both should have a say in what those expenses are. Conversations on budgeting are mutual conversations. Making budgeting or spending mistakes are not reasons to limit access to finances. 

By limiting access to money, perpetrators can limit the survivor’s access to all kinds of resources. As a result, not only can a survivor struggle to afford to leave the abusive situation or pay for therapy, they also may not qualify for income-based resources due to the household income, even though the survivor cannot access the money. Therefore, it’s important that providers take financial and economic abuse seriously and into consideration when providing need-based services.

Economic exploitation is a subtype of financial and economic abuse where someone destroys or takes advantage of another person’s financial resources. This subtype covers financial resources someone has such as credit, assets, and social security or disability checks. Some examples of economic exploitation can look like:

  • Opening a line of credit under the other person’s name without their consent or knowledge
  • Withholding or taking from social security or disability checks without consent or knowledge
  • Refusing to pay bills in the other person’s name
  • Forcing or coercing someone into taking loans
  • Refinancing a home or car loan without consent or knowledge
  • Selling or destroying valuable assets
  • Forging signatures on important financial documents
  • Coercing someone into writing bad checks or fraudulent financial statements

Economic exploitation doesn’t just have financial consequences, but there can be legal implications as well. Someone can coerce someone else into committing financial fraud. Financial fraud may also be committed if one person is trusted to be in-charge of the finances and the other doesn’t question the documents they are signing.
Financial and economic abuse doesn’t just happen in intimate partner relationships, and can happen between family members. It is not uncommon to hear a story of a parent setting up a credit card in their child’s name, only to rack up debt and destroy the child’s credit before they even enter adulthood, as 67% of identity theft cases involving a child are committed by a family member5. Similarly, the elderly are a particularly vulnerable population to economic exploitation by family members, as they may have a family member manage their financial affairs.

Employment-related abuse is a subtype of financial and economic abuse where someone tries to prevent the survivor from earning money as a form of power and control. By limiting the survivor’s ability to have their own money, the survivor becomes reliant on them, making it harder for them to leave. Research shows that employment-related financial and economic abuse can look like:

  • Not allowing work outside the home
  • Harassing them during work
  • Causing or forcing their partner to be late to or to miss work 
  • Sabotaging equipment, clothing, or materials their partner needs for their job 
  • Picking fights before important meetings or presentations
  • Manipulating or forcing their partner into quitting their job 
  • Not allowing their partner to further education or attend advancement opportunities

The abuse can also impact the survivor’s ability to find future employment, even after the perpetrator of the abuse is no longer in the survivor’s life, such as severing ties with potential references, tarnishing their reputation in their industry, or due to gaps in employment.

Sources

  1. Postmus JL, Plummer SB, McMahon S, Murshid NS, Kim MS. Understanding economic abuse in the lives of survivors. J Interpers Violence. 2012 Feb;27(3):411-30. doi: 10.1177/0886260511421669. Epub 2011 Oct 10. PMID: 21987509.
  2. Adams, Adrienne E. “Measuring the Effects of Domestic Violence on Women’s Financial Well-being.” CFS Research Brief 2011-5.6.
  3. Mary Kay. (2012). “Truth About Abuse Survey Report.” The Nation
  4. Salamone, Nancy. (September 2010). “Domestic Violence and Financial Dependency.” Forbes
  5. Kitten, T. (2021). Child Identity Fraud: A Web of Deception and Loss. Javelin Strategy.

Support Is Available

988 suicide & crisis lifeline

988 Suicide and Crisis Lifeline

988 Lifeline is a national network of local crisis centers that provides free and confidential emotional support to people in suicidal crisis or emotional distress 24 hours a day, 7 days a week in the United States. We’re committed to improving crisis services and advancing suicide prevention by empowering individuals, advancing professional best practices, and building awareness.

Phone: 988

Chat: Click here to chat

Text: Send any message to 988

Website

National Sexual Assault Hotline

RAINN is the nation’s largest anti-sexual violence organization. RAINN created and operates the National Sexual Assault Hotline in partnership with more than 1,000 local sexual assault service providers across the country.

Phone: 800-656-4673
Chat: Click here to chat

Website

VictimConnect Resource Center

VictimConnect is a referral helpline where ALL crime victims can learn about their rights and options confidentially and compassionately. 


Phone and text: 855-4-VICTIM
Online chat: Monday-Friday from 9am to 5pm EST

Website

Related

  • What is Domestic Violence?

    Domestic violence is violence that occurs within the home amongst any members of the household.…

    Learn More abouthttps://www.survivors.org/what-is-domestic-violence/

  • What Is Intimate Partner Violence?

    Intimate partner violence is violence that occurs in a relationship between current or former spouses…

    Learn More abouthttps://www.survivors.org/what-is-intimate-partner-violence/

  • Healthy Love After Trauma

    Join PAVE/Survivors.org Founder Angela Rose as she interviews Erin Merryn, pioneer of “Erin’s Law,” Antuan…

    Learn More abouthttps://www.survivors.org/healthy-love-after-trauma/