{"id":7932,"date":"2023-04-10T12:00:58","date_gmt":"2023-04-10T02:30:58","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/how-to-spot-and-stop-financial-abuse\/"},"modified":"2023-04-10T12:00:58","modified_gmt":"2023-04-10T02:30:58","slug":"how-to-spot-and-stop-financial-abuse","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/how-to-spot-and-stop-financial-abuse\/","title":{"rendered":"How to spot and stop financial abuse"},"content":{"rendered":"
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Until recently, financial abuse was often kept secret, especially where it occurred within the family. Thankfully that\u2019s changing with public awareness campaigns and help becoming more readily available.<\/strong><\/p>\n

The emotional and economic damage caused by financial abuse can be far reaching and devastating. A recent Australian report calculates that in 2020 alone, financial abuse victims lost $5.7 billion while the cost to the broader economy was $5.2 billion.i<\/sup><\/p>\n

Nearly one in 30 women and one in 50 men suffer financial abuse each year, according to the Deloitte Access Economics report The Cost of Financial Abuse in Australia, 2022. These figures are almost certainly an underestimate, the report adds. <\/p>\n

There are no typical victims of financial abuse: those affected are of all ages and means. Sadly, the abuser is often a friend, carer, partner or family member.<\/p>\n

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What is financial abuse?<\/h3>\n

Financial abuse is when someone uses your money without your permission, prevents you from getting access to money or takes charge of your financial decisions. <\/p>\n

These days, financial abuse is considered a form of domestic and family violence, taking away your independence and leaving you feeling vulnerable and anxious. Victims may also suffer physical violence and emotional abuse. <\/p>\n

The most common type of financial abuse is withholding income or controlling how it is spent, according to the Deloitte report. But there are other forms of abuse that can be equally harmful such as making a partner liable for a joint debt, preventing someone from working, refusing to contribute to household expenses and refusing to contribute to the costs of raising a child. <\/p>\n

Many victims also suffer flow-on effects of the abuse such as financial hardship and stress, leading to mental health issues. Some may also lose their home. <\/p>\n

In some cases of family violence, one partner takes control of the couple\u2019s finances, preventing the victim from leaving the relationship. In others, where the victim does manage to leave, the abuser may continue their abuse using tactics such as expensive legal action or disrupting the victim\u2019s work or business. <\/p>\n

Recognising the signs<\/h3>\n

Victims of financial abuse may not be aware of the abuse for some time, allowing perpetrators to empty bank accounts, deplete investments and incur large debts in the victim\u2019s name. <\/p>\n

The federal government agency, Services Australia says the warning signs include: <\/p>\n