What is Relationship Financial Abuse? A London Family Lawyer’s Guide to Recognising Relationship Financial Abuse and Escaping It
In Brief
Financial abuse is a hidden and misunderstood form of domestic abuse. Whilst it does not leave bruises or physical scars, it can trap you in an unhappy relationship with no obvious escape route.
Our Family Law Solicitors in London regularly advise those caught up in relationship based financial abuse.
In this article, we explain what relationship financial abuse is, how it works, the warning signs, the legal protections available, and the steps our team can take to help you safeguard yourself and your family.
What is Relationship Financial Abuse?
Financial abuse is a form of domestic abuse.
Relationship financial abuse occurs when one partner uses money, assets, or financial decision making to control, manipulate, or dominate their partner.
It can occur in all types of family relationships, marriages, civil partnerships, and unmarried relationships. It can happen before or after a separation.
Financial abuse is not restricted to those who are struggling financially. It can happen in any relationship, regardless of gender, age, or background.
The Law on Relationship Financial Abuse
Financial abuse is a recognised concept in English family law.
The Domestic Abuse Act 2021 refers to economic abuse. This includes all aspects of financial abuse, such as restricting access to money, stopping a partner from working, or not allowing a partner to open a bank account.
At its core, financial abuse is about power and control. The abuser uses money as a tool to limit the victim’s independence, freedom, and ability to leave the relationship.
How Financial Abuse Occurs in Relationships
Financial abuse can be subtle. A victim may not realise their partner’s behaviour is abusive because their behaviour patterns are so ingrained. An outsider or friend may see a happy family.
Financial abuse can remain low level or escalate over the course of the relationship until it becomes a complex and integral part of the family dynamic.
The slow and invidious nature of financial abuse can make it hard to spot and escape from.
Types of Financial Abuse
The best way to check out if you are experiencing financial abuse in your relationship is to speak to a Family Law Solicitor to understand the common patterns of economic abuse.
The common patterns of financial abuse include:
- Creating financial dependence
- Restricting access to money
- Stopping a partner from working
- Abusing income and assets
- Financial abuse after separation
Financial Abuse by Creating Financial Dependence
Financial abuse through economic dependence can be achieved through:
- Telling the victim that they are too stupid to handle their own financial affairs
- Insisting on a lifestyle that the partner cannot reach with their income
- Ensuring all assets, such as the family home, are registered in their name
- Ensuring debt is taken out in the victim’s name
Financial Abuse by Restricting Access to Money
Restricting access to money can involve:
- Taking control of all bank accounts and investments
- Requiring the victim to account for all expenditure
- Giving the victim an allowance from their own income
Financial Abuse by Stopping a Partner From Working
Stopping a partner from working can involve:
- Forbidding employment
- Insisting the partner provides all childcare
- Refusing any childcare cover or help in the home
- Not supporting career progression
- Making work life impossible
Financial Abuse by Abusing Income and Assets
This type of economic abuse can involve:
- Requiring the victim to pay their income into an account that is not accessible to them
- Taking out debt or car finance in the victim’s name, without discussion
- Transferring assets from the victim’s name, such as gifted monies from the family
- Refusing the victim any input into how their income or assets are used
Financial Abuse After Separation
This type of behaviour is sadly common and can include:
- Hiding assets in divorce proceedings or refusing to disclose assets
- Not paying court ordered spousal maintenance
- Refusing to pay child maintenance after a Child Maintenance Service assessment
- Refusing to cooperate with the sale or transfer of the family home
How Financial Abuse Fits With Other Types of Domestic Abuse
Financial abuse is the same as every other form of domestic abuse:
- Physical
- Emotional
- Psychological
- Sexual
- Coercive control
Any form of domestic abuse is about a perpetrator in a family relationship exercising control.
Financial abuse often goes in tandem with other types of domestic abuse. For example, a partner may have been told that they are too stupid to be a joint bank account holder or too thick to be trusted with a bank card or access to cash.
Financial abuse is also often dressed up as the actions of a caring partner. For example, a victim is told that their salary is being transferred to their partner’s bank account because their partner is good with money.
The law treats all forms of domestic abuse as serious and deserving of court protection.
Examples of Relationship Financial Abuse
Often, people who are subject to financial abuse talk to a Family Law Solicitor about starting divorce proceedings or ending an unmarried relationship for unrelated reasons. For example, they are unhappy with how their partner is talking to or treating their child, or their partner has had an affair. A discussion with their Family Lawyer will later reveal how financial abuse has impacted the relationship and family.
Examples of financial abuse include:
- Not being allowed to access a joint bank account or a sole bank account.
- Partner changing online bank login details
- Partner refusing access to a bank or credit card
- Loans being taken out without prior discussion
- Partner fraudulently signing the loan or transfer of assets paperwork in their partner’s name
- Fraudulently remortgaging a jointly owned family home
- Providing a weekly or monthly spending allowance and requiring an account for all expenditure
- Lending money to friends or family without consultation
- Selling the family home or investments without consultation
Warnings About Financial Abuse
Sometimes a partner will not spot what is going on in a relationship or will not appreciate how twisted the financial dynamic has become, but a parent, sibling or friend may do so. These warnings from friends and family can be ignored if a victim is so caught up with the daily difficulties of living with their partner. A Family Law Solicitor can help a spouse understand the financial abuse they have been subjected to and explore options to escape the situation they are in.
Legal Steps to Protect Against Financial Abuse
Several legal steps can be taken to protect against financial abuse, including:
- Non-molestation order application
- Ouster or occupation order application
- Freezing orders and financial settlement applications if you are married or in a civil partnership
- Application for additional financial disclosure in financial settlement proceedings
- Applications for temporary support, such as spousal maintenance
- Property or children law application if you are in an unmarried relationship
- Application to enforce a financial court order
A non-molestation order protects a victim from harassment, threats, or controlling behaviour. Financial abuse can form part of the evidence for a non-molestation order injunction.
An ouster order requires a perpetrator to leave the family home. An occupation order allows a victim to stay in the family home until a financial application is determined by the court. These orders can be made even if the family home is registered solely in the perpetrator's name.
When financial proceedings are started, the court can make a freezing order injunction to prevent the transfer or dissipation of assets. During financial court proceedings, the court may issue orders to secure full financial disclosure. Once the court has made a final financial order and the divorce proceedings have been finalised, either party can apply to the court to enforce it.
Unmarried partners can try to secure a fair property settlement after post-separation financial abuse by bringing a claim under Schedule 1 of the Children Act 1989 and seeking child support from the Child Maintenance Service.
How a London Family Lawyer Can Help
The family law team can help you understand your rights, obtain an injunction or protective court orders, and, if necessary, secure a fair financial settlement by negotiation or after starting financial and divorce court proceedings.
How a London Immigration Solicitor Can Help
If you are in the UK on a Spouse Visa, you need to report the end of a relationship to the Home Office. There is a route you can use to apply for Indefinite Leave to Remain even if you have not been living in the UK for the required 5 years. It is called the domestic violence concession.
The Home Office views all forms of domestic abuse (including relationship financial abuse) as relevant when an applicant applies to settle early in the UK because their relationship ended due to domestic violence.
Whether you need family law or immigration help, the team of specialist lawyers at OTS Solicitors can answer your questions about relationship financial abuse and provide the legal assistance you need.
Frequently Asked Questions on Financial Abuse in Relationships
Is financial abuse recognised in UK law?
Yes. Under the Domestic Abuse Act 2021, economic abuse is legally recognised as domestic abuse. There are many forms of financial abuse. A family lawyer can advise on whether what you have experienced amounts to economic abuse.
Do I have to prove financial abuse to get divorced?
No. With the introduction of no-fault divorce proceedings, you do not need to say why you want to get divorced. In the divorce application, you need to state that the marriage has irretrievably broken down, but you do not need to set out the reasons why.
Can I get a court order to stop financial abuse?
Yes. You may be able to apply for a non-molestation order, occupation order, ouster order or freezing order. Family Law Solicitors can advise on the grounds for these applications and how they can protect you from further domestic abuse.
What if my partner refuses to cooperate?
You can apply to the Child Maintenance Service for child support, apply to court for a divorce, injunctions and ask the court to make a financial court order. The Child Maintenance Service can enforce child support payments, and the court can enforce financial settlement orders.
How do I prove financial abuse?
The evidence you need to prove financial abuse depends on your situation. Evidence can include documents such as witness statements, text messages, bank statements, loan documents, and other relevant paperwork.
Should I leave the family home if I am in a financially abusive relationship?
You should leave the family home if you are in immediate danger. If you are not in immediate danger, it is best to speak to a Family Law Solicitor first, as they may be able to secure a non-molestation order and ouster order forcing your partner to leave the family home until the court makes a financial court order.
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