By Catherine Curtis-Walsh
Financial abuse is expected to have a sharper focus with upcoming changes to the Family Law Act commencing on 11 June 2025.
Often those experiencing financial abuse are not aware of it at the time. It is not until after separation that a financial abuse survivor might realize the full detrimental impact it has had on their financial (and emotional) wellbeing.
What is financial abuse?
Financial abuse involves someone controlling your ability to get, use or keep your money or economic resources. (Attorney General’s Department March 2024)
It does not matter what that person’s intention was when they were exerting control, the impact of it on the survivor and their family is what is key.
What are the legal remedies?
Financial abuse can be taken into account in determining how the pool of assets accumulated during your relationship should be divided after separation. You may also be able to receive spousal maintenance payments from your former partner if your current income is inadequate to support yourself.
Financial abuse is included in the definition of family violence in the Family Law Act. Two examples are provided:
- Unreasonably denying the family member the financial autonomy that he or she would otherwise have had.
- Unreasonably withholding financial support needed to meet the reasonable living expenses of the family member, or his or her child, at a time when the family member is entirely or predominantly dependant on the person for financial support.
What is financial autonomy?
Financial autonomy is having control over your financial decisions and over your financial behaviours.
Often you need information, in order to be able to make good financial decisions and to carry through with them. If you are experiencing difficulties trying to obtain financial information, either from your partner, former partner or spouse, you may be experiencing financial abuse.
Any person should be able to get full and easy access to information such as the value of property acquired during your relationship, this includes:
- your home;
- a business owned by you or your former partner/spouse;
- cars owned by you or your former partner/spouse;
- any other assets, investments, or savings; and
- mortgage and debts that you are or may be liable for.
How do you know if you are experiencing financial abuse?
You may be experiencing financial abuse if:
- you have been kept in the dark about financial information;
- your partner’s luxury spending is prioritised over essential financial considerations like mortgage repayments, school fees, extra curricular activities and family holidays;
- your spending is monitored and restricted by your partner or former partner/spouse;
- debts have been assigned to you, without your consent or knowledge; and/or
- you think your partner or former partner has been keeping significant separate money or assets from you.
Each of these actions limit your financial autonomy and you may be experiencing financial abuse.
Other more obvious indicators of financial abuse include when your partner or former partner/spouse:
- stops you from accessing your bank accounts;
- makes you give them your account details;
- will not tell you information about money and becomes overly defensive or angry when you ask;
- makes it hard for you to get or keep a job;
- does not make child support payments after separation; and/or
- Forces you to buy things or sign contracts.
Financial abuse can occur in relation to something as inconsequential as the grocery bill, to more significant expenses like holidays, cars, luxury items and mortgage repayments.
What can I do about it?
This information is general in nature and not a substitute for legal advice based on your individual circumstances. For tailored family law advice about your situation, speak with our Senior Family Lawyer, Catherine Curtis-Walsh, on 03 8621 1000 or advisors@emlawyers.com.au
