Around one in six Australian women and one in 13 men have experienced financial abuse at the hands of a partner, according to ABS data.
It can come in many guises and is now legally recognised as a form of family or domestic violence in many Australian jurisdictions.
If you or someone you know is experiencing domestic or family violence, call 1800RESPECT (1800 737 732) or visit www.1800RESPECT.org.au.
In an emergency or if you're not feeling safe, always call 000.
What is domestic financial abuse?
Domestic financial abuse covers a range of behaviours that control a person's ability to receive or use their own financial resources, or the manipulation of another's financial activities.
It can involve:
- restricting access to their bank accounts, credit facilities, or cash
- assuming control of their finances
- requiring them to ask permission to spend their own money
- accessing their funds without permission, including from joint bank accounts
- refusing to contribute to shared costs or child support
- forcing another person to take on debt or engage in a financial arrangement not in their best interests
- limiting another's ability to work or earn income
Such behaviours may occur gradually, making them more difficult to identify. It is also more common in relationships where a person is already suffering from other forms of abuse.
“Financial abuse is all about disabling a person's financial independence so they essentially become stuck in a relationship that is controlling, abusive and where they are disempowered to leave. It can also present itself as systems abuse, where one partner will seek to financially cripple another, such as through ongoing legal proceedings."
Expert view
Is enough being done to stop financial abuse?
In recent times, the banking sector has stepped up its role in recognising and reporting suspected cases of financial abuse.
Many banks now:
- routinely block abusive language via digital banking transaction descriptions
- provide mandatory training to help their staff recognise signs of abuse, how to handle sensitive situations, and where to refer customers to receive specialist help
- have updated product terms and conditions, explicitly stating financial abuse is unacceptable and can lead to account suspension or closure
- assist customers to put in some controls over joint accounts, such as limiting withdrawals or requiring two signatures to access funds
- have made it easier for customers to open their own secret accounts
Bank in-house services to assist with domestic violence/coercive control
CommBank Next Chapter: 1800 222 387
Westpac Priority Assist Team: 1800 063 509
NAB Assist Customer Support Hub: 1300 308 175
ANZ Specialist Customer Connect: 1800 517 167
All banks are required to have financial assistance/financial hardship teams which can assist with matters of domestic financial abuse.
What can victims of financial abuse do?
Some victims of financial abuse may be reluctant to seek help because they're afraid for their safety or feel ashamed or embarrassed.
Here are a list of free and confidential services:
Help for families affected by relationship or separation issues | Family Relationship Advice Line 1800 050 32 |
Crisis support, confidential one-on-one support | 13 11 14 24 hours |
Information, support and counselling service for domestic, family and sexual violence | 1800 737 732 24 hours |
Help if you're struggling with debt | 1800 007 007 |
Family counselling, mediation and dispute resolution services | Relationships Australia1300 364 277 |
Aboriginal & Torres Strait Islander run crisis support - free and confidential | 13 92 76 24 hours, 7 days a week |
Women's legal advice and referral service | Find Women's Legal Services in your area |
Free and confidential counselling service to support men | 1300 78 99 78 24 hours, 7 days a week |
Help to get back on your feet | Good Shepherd Australia Financial Independence Hub 1300 050 150 |
Source: MoneySmart
10 steps for people trapped in a financially abusive relationship
Ms Hartge-Hazelman provides a 10-step plan for those looking to free themselves from a situation of financial or other domestic abuse.
Plan your escape with trusted people
Find out as much about your financial situation as you can
Make copies: This includes everything that identifies you or with your address on it - photo ID, passports, bank statements, mortgages, credit cards, superannuation, telephone and utility bills as well as any subscriptions in your name
Change to SMS or electronic email statements/bills: Change your forwarding address if you know where you are leaving to or if you cannot use or access a private email account
Contact your financial institutions and ask to speak with someone who handles domestic violence issues. Most of the bigger banks have services to help domestic and family violence victims
Stash all of your private financial or important information with a trusted friend or in a safe place before you leave
Build your emergency escape fund if possible
Talk to your employer if you have one: Full-time employees who are not casuals are entitled to 10 days paid domestic and family violence leave a year. Your employer may also be able to help you with your security while you work.
Know where you're going and what it's going to cost
Know your legal options: Try seeking legal advice first through legal aid before going to a lawyer. This is important as legal aid can only represent one party and if you are registered, they cannot act for your partner in the same matter.