Financial Abuse is Fraud
Controlling the Finances Against the Will of Another is a Crime
Jun 30, 2009
Losing control of personal finances can be very traumatic for any individual regardless of age. There are no concrete statistics that can state how widespread this form of abuse is as this crime is generally unreported. Financial abuse is usually defined as either being denied access to all funds or being forced to manage all the family finances.
Elderly Financial Abuse
Most people will associate financial abuse with the elderly as this is most publicized. This abuse is sometimes referred to as material abuse, but no matter what phrase is used, it is a crime punishable by law. Often when seniors are financially exploited, they are subject to neglect, physical or psychological abuse.
Seniors with low literacy levels are vulnerable to financial abuse because they depend on those they trust to handle their finances, fill out forms or read government notices. Seniors who are older and those from ethnocultural groups may also be highly susceptible to financial abuse if they are isolated and lack English communication skills.
Financial Abuse in Marriage
Like financial abuse among the elderly, the victims of this crime are often victims of psychological abuse. Regardless, it is a form of mental abuse that causes emotional damage. Although some men are victims of financial abuse, information based from divorce cases and women's shelters tend to show that women more often than not are the victims.
Financial abuse, also referred to as economic abuse, can take many forms but the most commonly known form of abuse is designed to isolate a woman. Some women also are finding that their partner will absolve all financial responsibility leaving them in a “do or die” scenario: she has no option but to manage all financial matters otherwise the household will financially collapse. These women also experience some isolation as their partner will needlessly spend money when there are bills to pay, leaving the woman to desperate measures trying to make ends meet. In relationships where there are children, sometimes the woman will totally neglect herself to ensure that her children are not affected by her spouse's behavior.
The Buffalo News reported another aspect of financial abuse last year. A woman had discovered after her marriage ended that her husband had obtained bank loans, and abused credit cards. Divorce laws state that when a marriage ends, any assets that are accumulated during the marriage are divided equally, the same applies to any debts accumulated during the marriage.
Sometimes an abuser will control his partner's pay cheque, financial accounts or purchases. He can also destroy a credit rating by using the spouse's credit cards or putting bills (including utilities) in her name.
Signs of Financial Abuse
- Controlling the finances.
- Withholding money or credit cards.
- Receiving an allowance.
- Being held accountable for every penny spent.
- Money being taken against the will.
- Using the spouse's assets for personal benefit.
- Withholding basic necessities.
- Preventing a partner from working or choosing a career.
- Sabotaging place of employment. (Forcing the partner to miss work or repeated calling to the place of employment, etc.)
Seeking help is important if there is any suspicion of financial abuse. In Canada, Broken Spirits Network is a comprehensive listing by area of hotlines to call. In the United States, 1-800-799-7233 is a nation-wide toll free number for the National Domestic Violence Hotline.
Further Reading:
Financial Abuse Among the Elderly
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