Financial Abuse in Marriage
Domestic Violence Awareness: Financial Abuse in Marriage
October is Domestic Violence Awareness Month. If you or someone you know is in danger, call a local hotline, or the U.S. National Domestic Violence Hotline at 1-800-799-7233 and TTY 1-800-787-3224, or 911 if it is safe to do so.
October is Domestic Violence Awareness Month. Altabank annually dedicates itself to spreading awareness of domestic violence, recognizing it as a core issue in our community.
Statistics about domestic violence in Utah are troubling. According to a paper published in March 2023 by the Utah Women and Leadership Project at Utah State University, one in three women in Utah will face some form of domestic violence in her lifetime. Men aren’t excluded from abuse either. South Valley Services shares that one in four Utah men will face abuse from their partner as well.
Altabank and other local supporting organizations have partnered with Utah state leadership to combat domestic violence and support those impacted by its damaging effects. The bank has collaborated with Governor Spencer J. Cox and Lt. Governor Deidre Henderson to declare October as Domestic Violence Awareness Month in Utah with an official proclamation.
Domestic violence can come in several different forms. Financial abuse can be one of the more invisible types of abuse, but its impact can be long-lasting and destructive. It may go hand-in-hand with other forms of domestic violence.
“Financial abuse often occurs alongside emotional, psychological, and physical abuse, serving as a method of maintaining power and control,” James Boyd, Chief Development Officer at CAPSA in Logan, explains. “It can deepen the survivor's sense of dependence, making it difficult for them to leave the relationship, even if they are experiencing other forms of abuse.”
What Defines Financial Abuse?
The Utah Domestic Violence Coalition offers a simple but strong definition of financial abuse:
“Financial abuse is a series of tactics used by abusers to control a victim’s access to money or other financial resources. It often begins subtly and progresses over time. Like other forms of abuse, it is an effort by the abusive partner to gain power and control, and limit or remove the financial independence of the victim, thus making it difficult for them to leave the abusive relationship.”
This abuse may manifest itself in several ways. For one, the abuser could tightly control how money is spent in the relationship, or merely give a nominal allowance—or nothing at all. They also could withhold basic living expenses, or not allow the abused partner to work or earn money. Abusers may also steal their partner’s money or credit, perhaps by opening credit cards in their name and running up an unpayable balance. They could also refuse to include their victim’s name on important financial documents, such as bank accounts, car titles and mortgage loans.
Like other forms of abuse, deception, manipulation and malicious intent are hallmarks of financial abuse. It can prolong additional abuse by making it difficult or impossible for victims to leave their abusers because they don’t have the financial ability to do so.
Red Flags and Warning Signs of Financial Abuse in Marriage
Here are some things to look out for both in your own relationships and those of friends and family you suspect may be in a financially abusive relationship:
Causing trouble at work, restricting employment
If an abuser can cut off their victim’s ability to earn a living, they can go a long way towards completely controlling their entire life. Sometimes, this happens not only by forcing the victim to not seek employment, but also when the abuser creates issues for them at their current employer. It’s not uncommon for abusers to harass their victims at work, or force their job performance to suffer from their treatment at home.
Through this sabotage, victims sometimes are forced to quit their jobs or face possible termination, fearful of giving an explanation or seeking help from a trusted ally at work. Then, without employment or a consistent income, they become dependent on their abuser.
Running up the bill and destroying credit
In a severe form of financial abuse, abusers can destroy their victim’s finances for years to come by racking up debt in their name. They’ll open a line of credit cards in the victim’s name and swipe the card without regard for their victim’s resources or credit score, destroying both in the process when the abuser can’t or won’t pay the balance.
This abuse can affect the victim for years, even after separation. A bad credit score, caused by financial abuse, can impact the victim’s ability to open their own bank account after their escape. Sadly, this can complicate what should be the first step in getting back one’s independence. Altabank, however, works to open bank accounts for survivors so they can move past the damage caused by financial abuse.
Still, it may become much more difficult to get approved for auto loans or mortgages with bankruptcies, debt and liens weighing them down. Sometimes, the victim may unknowingly be on the hook for expenses incurred by an abuser’s actions when they open credit cards in the victim’s name without their consent.
This can also be a product of coerced debt when the abuser forces their victim to open credit and make transactions under the threat of physical or emotional harm.
Taking total control of finances
When one partner takes full control of the finances, with zero transparency or accountability to the other, it can be a sure sign of financial abuse. They may hand out a bit of an “allowance” to their victim, but oftentimes, this amount is reduced to almost nothing. It makes it difficult for victims to provide for themselves or even purchase the basic necessities.
Abusers can sometimes call this “taking care” of the finances, but really, they’re keeping their victim trapped and completely unaware of their financial situation, which very well may be deteriorating, quickly.
How to leave an abusive relationship and protect yourself financially?
The first step in leaving an abusive relationship is to create a safety plan. It’s important to note that the process of leaving an abusive relationship is the most dangerous time for the victim. Finding a “who” or “where” to escape to is key. If you don’t have someone who can take you in, and sadly, many victims do not, finding a shelter may be a viable option.
In the case of financial abuse, it could be wise to stash some funds away to aid with the escape. However, it could be risky to hide these emergency funds from the abuser, who could respond with anger if the money is discovered. Do so with caution and place money in a separate account or with a trusted friend or relative. Have your bank statements mailed to a different address, such as that of the person you trust to help you escape. Try to gather essential documents as well, such as your social security card, birth certificates, and passports.
It’s important to keep an eye on your finances. Regularly monitor your credit reports to see if anyone is opening new lines of credit in your name. Also, make sure to regularly change the passwords for your online banking accounts, and add two-factor authentication if possible. If coercion or abuse is preventing any of these measures from happening, reach out to local domestic violence resources or friends and family that can help you make your escape.
Boyd also recommends that victims attempt to document the abuse as much as possible by keeping receipts, bank statements or evidence of threatening communication from the abuser. This will be useful should they pursue legal action after leaving the situation.
If you are a victim, you may need to acquire legal help to freeze your assets and prevent further financial abuse. You could also need to rebuild your financial health or develop financial literacy your abuser could have prevented. Don’t let the fear of starting over stop you from getting out and getting help. Resources are in place to help you. Altabank and other community groups regularly volunteer at shelters to provide free financial counseling and education services. Transitional housing is also available for survivors so they can break from the dependence their abuser may have forced upon them.
Altabank locations are safe spaces for victims. If you need help, please feel welcome to come into an Altabank branch where you can safely speak to someone who can help guide you through the process of getting help after financial abuse.
Here are some of the resources that victims of domestic violence, including financial abuse, can turn to for help:
If you or someone you know is in danger, call a local hotline, or the U.S. National Domestic Violence Hotline at 1-800-799-7233 and TTY 1-800-787-3224, or 911 if it is safe to do so.