What’s the go with financial abuse?
We had a chat with Amanda Cassar – Founder, Director & Senior Adviser at Wealth Planning Partners on the Gold Coast. Have a listen to episode 302 where we did into the topic with Amanda:
Definition of financial abuse
“Economic abuse is a form of abuse when one intimate partner has control over the other partner's access to economic resources, which diminishes the victim's capacity to support him/herself and forces him/her to depend on the perpetrator financially. It is related to, or also known as, financial abuse, which is the illegal or unauthorised use of a person’s property, money, pension book or other valuables (including changing the person's will to name the abuser as heir), often fraudulently obtaining power of attorney, followed by deprivation of money or other property, or by eviction from own home.” (Wikipedia)
Who does it mostly impact?
Anyone can be the victim of financial abuse, from those at low level income and living on social security pensions, to the very wealthy, including celebrities. People of any social construct or circumstance can be abused and even those with education and experience are targeted. No-one is immune and the elderly, frail and those losing mental capacity, or in minority communities or with English as a second language are at significantly more risk. Statistically, women are also more likely to be the victims of abuse, than men.
What does it look like?
The symptoms can be many and varied but are likely to include:
Limiting one’s employment options or forbidding certain types of career choices – or working altogether
Extreme monitoring of purchases and spending patterns via receipt and account checking
Severely restricting spending and not allowing some purchases at all i.e. period poverty (not allowing the purchase of sanitary items to force women to stay at home during menstruation.)
Breadwinner threatening to leave or cutting off financial support to the family if the dependent partner doesn’t meet their demands
Money or assets are being hidden from you
Not allowing of private bank accounts, own funds or personal expenditure choices
Elder Abuse – theft of funds, unauthorised withdrawals,stealing of personal items such as jewellery or art, abuse of Power of Attorney duties
Running up debts in your name or pressure to take out loans you don’t want
Why does it mostly go unreported?
Sadly, abusers are most often spouses and partners, immediate and removed family members, neighbours and carers. Those in positions of trust are the most likely to take advantage of the ones we say we love or care for.
Financial abuse can cause the victims to feel:
Fear
Shame
Embarrassment
Anger and despondency
Disbelief and denial
As family is also often involved, they may not want their loved one to ‘get into trouble’.
What can we do to help our friends?
If you notice something wrong, be brave enough to have the conversation. Outline behaviours that you’ve noticed that make you uncomfortable. If you want to prepare well, perhaps find some local shelters or information you can share to assist your friend. Best of all, be a listening ear. Perhaps, they’d really like to have a chat about what’s happening, others may not be ready to talk, now or ever. Let them know you’re available if they ever do want to chat. They are in the best position to gauge their own personal safety and assess whether this is a situation that they need to leave, or are happy to remain in, for their own reasons.
What should we include in an escape plan?
Birth Certificate for self and children
Identification including Passport, Visa, Driver’s License
Recent Pictures of self, children and abuser
Social Security Numbers for self and children
Children’s school/vaccination records
Keys for house and car
Medical Insurance cards
Prescriptions for self and children
House deed, lease, and rental agreements
Bank Records and Tax returns
Driver’s License/Registration/Insurance Cards
Codes and passwords of all internet sites
How can we avoid financial abuse?
be clear from the start with your partner – listen to the my millennial money podcast (Season 3, episode 302) and formulate a money management system that works for both of you together
if appropriate look into prenuptual agreements – not for everyone, but may be for some
have trusted friends or advisers around you – share your concerns about your situation if they arise
have a conversation – if you notice a friend struggling with financial abuse share your concern for them, don't be afraid to speak up
share the my millennial money podcast episode about this topic (Season 3, episode 302) – it can be a prompt to be clear and upfront about managing money between you and your partner
High Profile Cases
Tina Turner – most of us are aware that Ike Turner battered his wife, but she was also the victim of severe financial abuse. ‘Tina the Musical’ highlights the severity of her story and her plight of being broke, months behind in rent, unable to support her family and pay her performers all the while headlining in Las Vegas and being a household name in her 40’s.Her true financial success came after her divorce from Ike and changing manager to Roger Davis who reinvented her in the 1980’s and launched her brilliant new solo career.
Stan Lee – the name behind the Marvel characters many knowand love including Spiderman and Iron Man, was also the victim of elder financial abuse prior to his death at the age of 95. Stan Lee’s former manager, Keya Morgan was arrested on charges of financial elder abuse against the late comic book legend, according to the Los Angeles Police Department. Morgan allegedly bilked Lee out of over US$260,000 and moved him from his own home to a condominium to be able to exercise more control.
Zsa Zsa Gabor – This famous actress Gabor fell victim to financial abuse in 2005 and filed a lawsuit against her only daughter, Francesca Hilton. It was alleged $2 million went missing from herestate whilst she was convalescing for many months after a severe car accident. In another twist, Francesca sued Zsa Zsa’s then husband Frederic Prinz von Anhalt for isolating her mother from friends and family, heavily sedating her, and for profiting from her assets. In 2012, Francesca asked a judge to appoint a conservator to oversee her mother's finances. She claimed Anhalt took out a $700k loan against her mother’s home in Bel Air and was not paying the mortgage. Both women died before the case was settled and he inherited anyway.
If you or someone you know is in the midst of financial abuse, there is an list of services and support lines available to call here on the ASIC Moneysmart website:
https://www.moneysmart.gov.au/life-events-and-you/families/financial-abuse
There’s also free financial counselling available through the National Debt Helpline:
If you’d like to read more about financial abuse click on these links below:
Kerry Washington Is Working to End Financial Abuse andEmpower WomenTo Walk Away
Women + Money–What is Financial Abuse?
Australian Bureau of Statistics – Conceptual Framework for Family & Domestic Violence
ASIC (Australian Securities & Investments Commission) MoneySmart – Financial abuse
Women’s Agenda: What you need to know about financial abuse & what to do if it happens to you
Women’s Agenda: How banks can help stop financial abuse
Financy: The tell tale signs you’re being financially abused
The Conversation: Revealed: The Hidden Problem of EconomicAbuse in Australia
