Financial abuse is considered the “most prevalent form of domestic violence” – the National Network to End Domestic Violence (NNEDV) states that it occurs in 99% of domestic violence cases (1).
It is defined as a situation in which one partner uses money to control or manipulate another partner. This could include limiting their access to money and financial information (including how much money they own as a couple), limiting spending and preventing them from becoming financially independent.
a caller ramsay show November highlighted how financial abuse can be mixed with other forms of abuse and can leave someone feeling helpless(2).
Jackie, who is from Cincinnati, Ohio, told hosts George Carmel and Rachel Cruze that her husband had been “verbally, emotionally and financially abusive.” She went on to explain, “Last night [that] Beyond the physical abuse, he was arrested. “
Jackie’s story, while shocking, also highlights the serious impact of financial abuse. As she told the host, “My husband threatened to remove me from all my accounts, my credit cards, and threatened to take my account balance to zero… He said I needed to prostitute myself to have money, which is so disgusting.”
Jackie said her husband was the sole breadwinner and knowledgeable about financial matters, but he took advantage of her ignorance. Their children were in college, and she wanted advice from the owners on how to protect themselves financially.
Jackie told ramsay show The owner has a joint account with her husband and she is the authorized user on his credit card. He had a separate account where he kept the money he received from his mother.
A shocked Cruz suggested: “While you hang up on us, I’m going to drive to the bank and create a new checking account. I’m going to take half the money out of that joint checking account and put it into your own checking account, which he has zero access to.”
She also suggested that Jackie stay in the hotel until she could get support from friends and family.
“You deserve better than this, Jackie,” she said, making it clear that divorce was the only way out she saw. The Ramsay Show typically recommends combining finances, but Cruz said when it comes to issues like abuse and addiction, separate accounts are needed for protection.
“He knows he holds all the cards,” Kamal said. “I think when he realizes, oh, she’s not coming back, oh, she created her own account, oh, she took half the money… when the court requires him to pay alimony or child support, whatever it is, I don’t think he’s going to laugh… There are laws here to protect you.”
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Because Jackie is only the authorized user of the credit card, she is not responsible for any debt on the account. As for joint accounts, “In most cases, state law or the terms of the account prohibit a person from removing the other party from a joint checking account without the other’s consent. However, some banks may offer accounts that allow such removal,” the Consumer Financial Protection Bureau (CFPB) says.
“Financial abuse has a devastating effect because it is often not illegal but an invisible tactic of domestic violence,” said Kim Pentico (3), director of the Economic Justice Program at the National Network to End Domestic Violence (NNEDV). “Women effectively have no money to take taxis, buy food and other necessities, often forcing them to choose between homelessness and being beaten. For these women, this is an extremely powerless situation.”
“Any woman can be a victim of financial abuse, regardless of financial or social status,” said John Rugel, senior vice president of customer fulfillment and underwriting for Allstate Life Insurance.
It’s important to note that as a joint account holder, you have equal rights and joint ownership of all funds in any bank account you own, regardless of who deposited the money. While a spouse with financial control may try to prevent you from accessing the account or information about the account, you have the right to know all you want to know about your family’s finances.
Because women are more likely to be abused in relationships, some financial experts like Kevin O’Leary recommend that they sign a prenuptial agreement and remain financially independent after marriage. This can give women the financial freedom to easily escape abusive relationships – something Jackie’s case shows too few women have.
If you believe your spouse is being financially abusive and may be using your information to open accounts in your name or access your accounts, you can call your bank and credit card company to change your account number, PIN, password, and any other access codes. It’s important to choose a password that your spouse or others can’t guess. Also make sure any computer or device you use to access your banking information is secure and password-protected. Some abusers install spyware on their partners’ devices, so make sure your device doesn’t have any suspicious programs.
If you believe you have been a victim of financial abuse or any other form of abuse, you can call the National Domestic Violence Hotline at 1.800.799.SAFE (7233) for help and support immediately.
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National Network to End Domestic Violence(1); Ramsay Show Highlights/YouTube (2); Allstate Foundation(3)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
