Financial abuse is one of the most common forms of domestic abuse, using money to manipulate and maintain power over others. Financial abusers use money as a weapon to control, segregate and limit the economic opportunities of others.
Many of us tend to think of financial abuse as occurring in romantic relationships, such as between husbands and wives and domestic partners.
However, financial abuse can also occur in other relationships, such as between parents and minor children, or between caregivers and elderly patients.
Here we will explain the common types of financial abuse, how to identify it, and what you can do to overcome financial abuse if you are a victim.
Signs of financial abuse in romantic relationships
Most couples have one day debated money. Having a conflicting money view is one thing, and it can be resolved with open and honest communication. However, if one partner controls the finances and uses that control to maintain power over others or catches them, it can be a sign of financial abuse.
Sometimes financial abuse begins slowly and builds up over time. It is also difficult to see from the outside to see if someone is in a financially abusive relationship.
There are no “typical” victims of financial abuse. Anyone can fall victim to financial abuse regardless of gender, race, income, education level or job status.
This type of abuse isn’t just about withholding money. Below are some signs of financial abuse to look for, both in your own relationship and in your friends and family. Some signs that can indicate this type of abuse are:
1. Deny access to a partner to a fund, financial information, or basic needs:
- Withhold money
- Give benefits
- Request a receipt for purchase
- Withhold basic needs such as food, clothing, medicines, etc.
- Exclude them from important financial meetings
- They deny access to family finances and exclude them from household financial decisions
- Prevents having or using credit or ATM cards
2. Prevent your partner from making their own money, including:
- Prohibit them from working or going to school
- They demand they quit their job
- It often works to force them to miss or get late.
- Requiring that they have “less” careers, they earn less than the abuser themselves
- Forces abuser to work in the business because of little or no pay
- Harass them at work and disrupt work performance
- Access your benefits
3. Force your partner to force certain financial actions, such as:
- Force them to submit false tax returns or other legal financial statements;
- Force or force them to take away their loans
- Forces you to sign stocks, bonds or other property
- They threaten and force them to enforce seduction so that the abuser can sign the documents without their consent.
Other forms of financial abuse
Financial abuse can also occur in non-romantic relationships. The most common form is when a child is financially abused by his parents and the elderly are financially abused by a grown child, relative, or caregiver.
Financial abuse of children
Most parents control the personal information and finances of minor children, which is absolutely normal. However, when parents start using their children and using this information to their disadvantage, it turns into financial abuse.
This usually happens when parents are desperate and have no financial options. They will use their child’s identity to earn funds.
For example, parents can open a credit card in their child’s name and are not planning on paying it back, ruining their child’s achievements. Or they may take a loan with the name of the child and the default loan.
Parents may apply for cable or cell phone in their child’s name and never pay the bill. Children are particularly vulnerable to financial abuse, like the elderly who can’t speak for themselves.
Cases of financial abuse of children should be brought to the attention of trustworthy family members. If necessary, you need an attorney who can advise you on what steps you can take to deal with the situation.
Economic abuse of the elderly
Financial abuse in the elderly is a more common form of abuse and can take many forms. The perpetrator can include family members, friends, neighbors, lawyers, and home care aides.
These people use their power to exploit the elderly people who care for them, and those who trust them in their finances. Often these people have the power of lawyers for the advanced players who use them to make poor choices in financial choices.
This type of financial abuse includes misuse of a credit card, ATM card or check, stealing money, property or other valuables, or borrowing money that you are not intending to repay.
If you suspect someone is financially abusing your seniors in your life, reach out to a family law lawyer and decide what you can do to intervene.
What are the consequences of financial abuse?
Financial abuse is not only harming the victims at this time. And it doesn’t just hurt the victims financially. Financial abuse is often an early sign of domestic violence.
Aside from short-term financial issues and the possibility that it escalates into domestic violence, there are long-term consequences of financial abuse.
This makes it even more essential for financial abuse victims to identify the problem and seek help as soon as it is safe.
Economic outcomes
Victims of financial abuse face long-term financial consequences. They often have low credit scores or no credit history because they lack access to financial accounts in their names.
Others have credit scores that have been ruined by abusers who run their bills in the victim’s name and do not pay them back. Furthermore, with little or no work history, victims of financial abuse may find it difficult to get a job.
This could limit the opportunity to generate income even after the abuser is gone.
Legal Consequences
Common legal consequences of financial abuse include penalties for fraudulent tax returns and penalties for false loan documents. Victims are often liable for liability that arises in their own name but lacks knowledge.
What can victims of financial abuse do to get help?
If you’re in a financially abusive relationship, no matter how bad your situation may seem, you don’t have to stay with it. The first step is to recognize the problem and decide to leave the relationship.
From there, there are steps you can take to start freeing yourself from financial abusers:
1. Collect financial information
Collect all the financial information you have at your own whim. This includes copies of your credit card statement, bank statement, joint accounts and tax returns.
Get a copy of your credit report from one of the three major credit bureaus. Additionally, it can be useful if you have a birth certificate, social security card, health records, or other important documents in hand.
Keep these personal records in a safe place. If you are in doubt, leave a copy with someone you trust who lives outside the home that you share with your abuser.
2. Start educating yourself about your finances
After being denied access to daily financial and household financial decisions, you may not have a strong understanding of your personal finances. Start educating yourself about the basics, such as understanding your credit score.
You may not yet understand how to manage your own finances, but there is information there. It may seem daunting at first, but you can educate yourself. Free resources like the ones offered by Clever Girl Finance offer you a way to learn everything about personal finance.
3. Start saving your own money
This may be easier than you say, but saving a portion of your own money is an important step to leaving your abuser.
It’s not easy to save cash when you have nothing, but you can do it. Think outside the box for how you save. Hide cash tips from your work or reach out to the network and ask a friend for a small cash loan.
If possible, apply for a credit card in your name and allow you to use the line of credit if necessary.
4. Please ask for help
The most important thing is to ask for help. Build a team around you, including counselors, support groups, therapists, or other domestic violence advocates. Reach out to trusted friends and family and tell them about your situation. moreover, National Union against Domestic Violence Provide resources to victims of financial abuse.
Please consider financial support Set up a meeting with a free consumer credit counseling agency. These organizations offer free financial education and, among other things, help you plan to get out of debt.
Finally, your safety is of paramount importance. If you are at risk, there are legal measures that will allow you to protect yourself before leaving the abuser. If you feel unsafe, contact your attorney or legal aid agency to discuss your options.
Your option may be to apply for a protective or restraining order that could prohibit the abuser from harassing, intimidating, or even contacting you.
you can Overcoming financial abuse
There are many forms of financial abuse, but it is always summed up in one person’s control of others. If you are a victim of financial abuse, know that there is a way.
By educating yourself and seeking the help of others, you can Get out of unhealthy circumstances and recover from financial abuse.