#024: Financial Abuse 101: What is it and how do I recover?

1 in 4 women is known to be a victim of domestic violence. Men are affected too, we just have fewer stats on the rate they endure abuse. 

A study by the Centers for Financial Security found that 99% of domestic violence cases also involved financial abuse. What's more, financial abuse is often the first sign of dating violence and domestic abuse. 

Financial abuse involves controlling a victim's ability to acquire, use, and maintain financial resources. Those who are victimized financially may be prevented from working. They also may have their own money restricted or stolen by the abuser. And rarely do they have complete access to money and other resources. When they do have money, they often have to account for every penny they spend.

Financial abuse may begin subtly and progress over time. It may even look like love initially as abusers have the capacity to appear very charming and are masterful at manipulation. For example, the abuser may make statements such as, “I know you’re under a lot of stress right now so why don’t you just let me take care of the finances and I’ll give you money each week to take care of what you need.” 

This scenario commonly leads to the abuser giving the victim, less and less in “allowance” and by the time the victim decides she or he wants to take back control of the finances, she or he discovers that the accounts have all been moved or she or he no longer has knowledge or access to the family funds.

The short- and long-term effects of financial abuse can be devastating. In the short-term, access to assets is imperative to staying safe. Without assets, survivors are often unable to obtain safe and affordable housing or the funds to provide for themselves or their children. With realistic fears of homelessness, it is little wonder that survivors sometimes return to an abusive partner.

For those who manage to escape the abuse and survive initially, they often face overwhelming odds in obtaining long-term security and safety. Ruined credit scores, sporadic employment histories, and legal issues caused by the abuse make it extremely difficult to gain independence, safety, and long-term security.

Resources:
The National Domestic Violence Hotline
Advocates are available 24/7 at 1-800-799-SAFE (7233) in more than 200 languages, TTY 1-800-787-3224. All calls are free and confidential.

Aunt Bertha 

Purple Purse Allstate Foundation

About Rebecca Neale
Rebecca G. Neale has years of experience advocating for clients in the courtroom and the conference room and enjoys helping people navigate some of the most difficult chapters of their lives.

She has represented and advised over 300 clients in divorce cases, housing proceedings, Social Security appeals, and more. Rebecca has represented homeowners in nationwide class-action lawsuits against banks and small businesses in contract disputes and clerked for the highest state courts in New York and California.

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