Economic abuse, also referred to as financial abuse, is a form of coercive control wherein an individual exerts power over another person by manipulating or restricting access to financial resources, economic assets, or economic decision‑making. It is recognized as a component of intimate partner violence (IPV), elder abuse, and familial abuse, and is addressed in both criminal and civil law in various jurisdictions.
Definition and Scope
Economic abuse encompasses a range of behaviors designed to create financial dependency, limit autonomy, or cause economic hardship for the victim. Common tactics include:
- Controlling or monitoring a partner’s income, spending, and bank accounts.
- Preventing the victim from working, obtaining education, or pursuing vocational training.
- Incurring debts or financial obligations in the victim’s name without consent.
- Misusing shared assets, property, or inheritance to the victim’s disadvantage.
- Withholding or destroying money, credit cards, or financial documents.
- Coercing the victim to sign contracts, mortgages, or other legal agreements under duress.
These actions may be perpetrated by spouses, intimate partners, family members, caregivers, or others in a position of authority.
Legal Recognition
Several countries have incorporated economic abuse into statutes on domestic violence. For example:
- In the United States, many states define “economic abuse” within their domestic violence laws, allowing victims to seek protective orders and criminal charges.
- The United Kingdom's Serious Crime Act 2015 includes “controlling or coercive behavior,” which covers economic manipulation.
- Australia’s Family Violence Protection Act 2008 categorizes economic abuse as a form of family violence.
Legal remedies may involve restraining orders that restrict the abuser’s access to joint accounts, orders for the division of assets, and criminal prosecution for fraud, theft, or coercion.
Prevalence and Impact
Research indicates that economic abuse frequently co‑occurs with physical, sexual, and emotional abuse. Studies in the United States and Europe report that between 30 % and 50 % of domestic violence survivors have experienced some form of economic abuse. The consequences for victims include:
- Loss of financial independence and increased vulnerability to further abuse.
- Deterioration of credit scores and long‑term financial insecurity.
- Barriers to leaving abusive relationships due to lack of resources.
- Psychological effects such as anxiety, depression, and diminished self‑esteem.
Prevention and Intervention
Responses to economic abuse involve multidisciplinary approaches:
- Legal Services: Provision of legal aid to obtain protective orders, navigate divorce or separation, and reclaim assets.
- Financial Counseling: Programs that assist survivors in budgeting, rebuilding credit, and accessing public benefits.
- Shelters and Support Organizations: Offer emergency funds, secure banking options, and education on financial literacy.
- Public Policy: Initiatives to improve data collection on economic abuse, develop training for law‑enforcement officers, and enact legislation that criminalizes specific financial control tactics.
Academic and Policy Discourse
The concept of economic abuse has been examined in fields such as sociology, psychology, criminology, and economics. Scholarly literature emphasizes the need for:
- Standardized measurement tools to assess the prevalence and severity of economic abuse.
- Comparative legal analyses to identify best practices across jurisdictions.
- Integration of economic abuse considerations into broader domestic violence services and victim‑centred frameworks.
See also
- Intimate partner violence
- Coercive control
- Financial exploitation (elder abuse)
- Domestic violence legislation
References
- Bonomi, A. E., et al. (2006). “Economic abuse among women seeking shelter.” American Journal of Public Health, 96(12), 2242–2245.
- Stark, E. (2007). Coercive Control: How Men Entrap Women in Personal Life. Oxford University Press.
- United Nations Office on Drugs and Crime (UNODC). (2021). “Global Study on Domestic Violence.”
Note: The information presented reflects the current consensus in peer‑reviewed literature and statutory law as of the knowledge cut‑off date of June 2024.