Law Talks Episode: Financial abuse – a hidden form of domestic and family violence

Robyn: Good morning and welcome to another edition of 4CRB’s law talks. And today we have joining us from Attwood Marshall Lawyers, Family Law Associate Laura Dolan. Thanks for being here, Laura.

Laura: Thanks for having me.

Robyn: Well, last week we discussed domestic and family violence and how sadly, incidents of domestic violence tend to get worse throughout the festive season. And to continue this discussion today, we are going to be focusing on one of the more hidden forms of domestic and family violence, that being financial abuse. There has been an increase in media attention over the past year on individuals sharing their stories about being a victim of financial abuse, hopefully bringing more attention to this form of domestic violence and the ways it plays out in relationships.

Laura, what can you tell us about some of the stories the media shared in 2024 trying to put a spotlight on this issue?

Laura: There’s been a bit of attention on financial abuse and how to tackle this insidious behaviour., with more and more women coming forward and sharing their stories to raise awareness.

One particular media outlet that has been sharing consistent stories about women impacted by financial abuse is Mamamia. These stories help bring this issue to the forefront and highlight red flags people can look out for to identify financial abuse and where to turn to, to get support.

In one story published by Mamamia, a woman in a de facto relationship of six years decided to call it quits and asked her former partner to move out of their home. He refused. Eventually he did leave, but unfortunately that was not the end of the woman’s troubles with him. Years later, she was pulled back into drama when he tried to hold her accountable for his debt. Which I might add was in his sole name and was not a debt she was aware of during their relationship.

She spent hundreds of thousands of dollars in court trying to fight it.

In another story, a woman named Jessica shared her experience of financial abuse endured by her husband, who controlled all the credit cards, bank accounts, and managed the bills.

If Jessica wanted to buy something small for herself, she had to plead our case and in many cases, it wasn’t worth the trouble. Although her husband wasn’t physically violent, the consequences of her spending or breaking the financial rules were serious enough for her to deter from doing so.

Jessica felt trapped. And that level of control extended into other areas of their lives beyond the finances.

These are just some of the thousands of stories playing out behind closed doors. Unfortunately, financial abuse is much more common than people realise.

Robyn: Yeah. They’re shocking stories, Laura, and why is financial abuse able to go hidden for so long? And what are the common misconceptions around this type of abuse?

Laura: Financial abuse can escalate over time. It might just start as something very minor, so before you know it, you have no autonomy or control over your finances.

Unfortunately, women tend to be in the group of most significantly impacted by financial abuse. After all, women are usually the ones who may stop working when having a family and looking after young children and lose the autonomy they maybe once had when they did prior to growing their family.

Once an abuser takes control, women can find it very difficult to get that autonomy back and find a way out.

There’s also this common misconception that financial abuse only happens to people from the lower income household, but that is not the case. We see it impact people from all walks of life, and it can occur to any socio-economic group.

So many times, these types of controlling behaviours are overlooked or misconstrued as being protective or taking care of the family.

They can start small and subtle and worsen overtime. The fact is, it’s not about the money, it’s about control. And in a lot of cases the victims don’t realise that by their finances and life, being controlled in this way is actually a form of domestic violence.

Robyn: Are specific legal protections available for someone who has experienced financial abuse?

Laura: If someone is in a relationship and they’re experiencing financial abuse, which can involve controlling your partner’s finances, monitoring every cent the other person’s spends, wracking up debt in the other person’s name, or stopping someone from working or earning an income, just to name a few, both legal and financial advice is available to help that person get out of their circumstances and regain control of their life.

As financial abuse is a form of domestic violence, the individual may be entitled to obtain protection by way of a domestic violence order, which may cease the financial abuse.

Each state and territory also have an agency to support victims of crime, with payments and access to counselling support. This support is only available where the crime has been reported to police and in some states when the perpetrator is convicted.

The family court can also make orders about the division of property between separating partners that reflects the need for one party to be compensated in circumstances that involve family violence and financial abuse. The court may be able to order urgent spousal maintenance in some circumstances so that a victim of financial abuse leaving the domestic violent relationship can have access to funds sooner.

Robyn: And what about banks and other financial institutions? What role can they play in helping victims of financial abuse?

Laura: Banks and other financial institutions are becoming increasingly aware of financial abuse in domestic violence relationships.

In some cases, and with sufficient evidence, banks will recommend an economic abuse debt be waived. Some banks will also provide financial support to help victims survivors get back on their feet.

A few years ago, the Commonwealth Bank launched ‘CommBank Next Chapter’, a commitment to supporting victims of financial abuse, no matter where they bank.

Through this commitment they partner with community services to ensure anyone affected by financial abuse can access support, established the Financial Independence Hub with Good Shepherd, to help people regain confidence and achieve long term financial independence, developed technology to block and report abusive transaction descriptions, created resources to help workplaces support employees impacted by domestic and family violence, and these are just a few of the initiatives they’ve implemented.

According to CommBank’s Next Chapter Service, people can access free confidential support and get referrals to connect with a range of specialist services.

The financial services industry has a lot they can offer to help support people who fall victim to this kind of abuse, so it is promising to see some steps have been taken in the right direction. But there’s always a lot more that can be done, after all financial abuse is said to affect one in four Australians.

Robyn: Yeah, you’re absolutely right about that. There’s always more that can be done. To leave our listeners with a final message today, what advice would you give to anyone who is in this situation and wants to get out? What are the first steps they should take and where can they turn for help?

Laura: Firstly, seek legal advice. Talking to a lawyer can help you understand your rights and options when it comes to separation, property, settlements and financial arrangements.

For instance, women who’ve had no access to finances may worry they can’t afford legal help. However, services like ‘Just Fund’ provide financial assistance specifically for matters like property settlements. It’s a straightforward process who can give you the financial backing you need while working towards a settlement.

Lawyers can also assist with applications for urgent spousal maintenance to provide financial support while waiting for a property settlement to finalise.

Secondly is to reach out to your bank. Many banks have resources and support program for individuals experiencing financial abuse or other forms of domestic violence. It’s worth speaking to them about your situation.

And lastly, contact Centrelink. The government offers specific payments and assistance packages for people escaping domestic violence. These payments can provide much needed financial support quickly, helping you to take those critical first steps towards safety and independence.

Utilise support services and charities. Organisations like 1800RESPECT offer confidential information, counselling and support 24/7 for anyone impacted by domestic violence. They are a lifeline for individuals needing immediate guidance and support. These are just a few of the many resources available, no one should feel alone in this journey.

Robyn: Yeah, it must be a frightening journey for the victims of financial abuse and hopefully, as you said, we can keep the conversation going and shine a spotlight on this form of domestic violence. Thank you for your time today, Laura.

Laura: Thank you for having me.

Robyn: You’ve been listening to law talks here on 4CRB, which you can hear every Friday morning from 9 o’clock.