Economic abuse or financial abuse in a marriage is a form of domestic abuse whereby one partner attempts to control the ability of their partner to access, acquire, use or keep their own money. It is important to understand that if you are a victim of financial abuse in England and Wales, it is a form of controlling or coercive behaviour under the 2021 Domestic Abuse Act. Anyone found to have committed an act of economic abuse may face serious legal consequences, including imprisonment in the most extreme cases.
Signs of financial abuse
Financial abuse in marriages and civil partnerships is illegal and can take many forms, including (but not limited to):
- Limiting the access of a partner to shared money/bank accounts
- Providing a small amount of money and insisting that a partner asks for more
- Making it difficult or even impossible for one partner to work and have financial independence
- One partner asking the other to constantly justify their spending
- One partner puts all bills in the name of the other partner
- Not allowing a partner to buy what they need
- Taking one partner’s money away from them without their permission and spending it or controlling access to it
- Limiting access to bank accounts containing jointly owned funds
- Forcing a partner to steal money from family members
- Stopping a partner from seeking professional advice and support regarding financial abuse
- Coercing a partner to build up debt on a credit card in their own name
- Irresponsible spending placing financial pressure on the family, and
- Not providing full disclosure of financial assets during the divorce process – with the aim of hiding assets and keeping them when they should be shared.
There are many forms of financial abuse in the UK, all of which can cause enormous emotional and financial stress for those affected. If you are the victim of financial/economic abuse, please seek professional legal advice and support as soon as possible. The perpetrator may try to convince you that they have your best interests at heart, but such behaviour is, in reality, insidious and against the law.
How to prove financial abuse in the UK
In order for a partner to be charged with financial abuse, it is important to present evidence to the court of what has been happening to you. Evidence can take many forms, including:
- Photographs/videos or recordings which show financial abuse
- Messages showing examples of economic abuse
- Copies of financial documents (e.g. loan, credit, or bank statements and credit agreements)
- Any emails or correspondence from your partner showing the abuse you have received
- Witness statements from others who have observed the financial abuse you have suffered
Financial abuse in divorce settlement
It is not uncommon for financial abuse that occurred during marriage to continue after separation, even while trying to reach a divorce financial settlement. Financial abuse in divorce settlements can take several forms, including:
- Failing to disclose financial assets on Form E – failure to fully disclose all assets during the settlement process is against the law, and the courts take a dim view of such action.
- Selling marital assets without agreement (or premarital assets where they may be required to meet the financial needs of both parties)
- Concealing assets (e.g. hiding vehicles or moving money to another country)
- Refusing to pay spousal maintenance
- Refusing to pay child maintenance
- Not cooperating with the court or adhering to a court order
- Slowing down or not responding to the divorce settlement process
- Threatening not to cooperate with the divorce financial settlement process
Economic abuse within a marriage refers to the inappropriate control of finances, assets, and resources to deliberately exert control over a partner. Unfortunately, it is a highly corrosive and damaging form of controlling or coercive behaviour which can lead to a serious penalty, potentially including imprisonment. If you are concerned that you are a victim of financial or economic abuse within your relationship or after your separation, please contact our highly experienced family law team. We will discuss what we can do to protect your financial rights, whether this requires mediation, an injunction, or a court order to force your partner or ex-partner to comply.
