Controlling the finances can be abuse
Australians have sadly become use to the term “family violence” to mean physical or emotional abuse that takes place within a relationship. There is also another term that is considered to be family violence under the Family Law Act, and that is economic and financial abuse.
Financial abuse is a pattern of behaviours used by perpetrators to exert control over their victim, usually by excluding the victim from decisions about finances; restricting a victim’s access to bank accounts and providing them with a weekly allowance; coercing the victim to take on debt in their sole name; or forcing them to sign over assets.
The legislation also defines financial abuse as “unreasonably denying the family member the financial autonomy that he or she would otherwise have had; or unreasonably withholding financial support needed to meet the reasonable living expenses of the family member, or his or her children, at a time when the family member is entirely or predominantly dependent on the person for financial support”.
It’s been reported that a lack of access to financial independence is a primary reason that many victims don’t leave an abusive relationship and unfortunately, financial abuse often goes hand in hand with physical and emotional abuse.
Behaviour that sabotages a victim’s employment can also constitute economic abuse. For example, if a victim is prevented from leaving the home for work or job interviews, or harassment at their workplace leads to reduced hours or dismissal, this may also be considered financial abuse.
In a recent case, examples of financial abuse perpetrated by the husband were:
- Cancelling the wife’s credit card during periods of separation;
- Cancelling the phone and internet services to the home; and
- Cancelling the family’s private health insurance.
The court also found the husband’s failure to meet mortgage payments and pay child support were further measures taken by him to unreasonably withhold financial support at a time when his wife and children were dependent on him.
The judge said the man took “measures designed to place pressure upon the wife such that she bows to the will of the husband who wields financial power.”
In another case, a wife discovered that about a week after separating from her husband, he had withdrawn all but $127 from their joint bank account. He did not properly support their children after separation and the wife had been forced to approach her family and members of her church community for help.
In a further case, a judge found that the husband’s behaviour during the marriage to be controlling, abusive and oppressive.
In that case, the Judge said “I infer that that husband’s behaviour made the wife’s contributions as a homemaker and parent significantly more arduous than they ought to have been… I also infer that the husband’s criticisms of the wife’s intellectual ability, by undermining her confidence in the work sphere, made her financial contributions more arduous than they ought to have been.”
Financial abuse can also incorporate engaging the victim in costly, ongoing legal proceedings, as well as masking income and hiding assets to avoid paying child support.
It’s been determined that economic abuse may jeopardise a victim’s financial self-sufficiency resulting in a diminished ability to parent, access healthcare and education, generally act independently or to leave the relationship.
If you, or someone you know, is being subjected to financial abuse, please contact Michael Lynch Family Lawyers on: (07) 3221 4300 or email: [email protected]
