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, or also known as, Financial abuse, which is the illegal or unauthorized use of a person’s property, money, pension book or other valuables (including changing the person's will

Will (law)

A will or testament is a legal declaration by which a person, the testator, names one or more persons to manage his/her estate and provides for the transfer of his/her property at death...

 to name the abuser as heir), often fraudulently obtaining power of attorney

Power of attorney

A power of attorney or letter of attorney is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter...

, followed by deprivation of money or other property, or by eviction from own home. Financial abuse applies to both Elder Care abuse and Domestic violence.

A key distinction between Economic abuse and Financial abuse is that Economic abuse also includes the control of someone's present or future earning potential by preventing them from obtaining a job or education.

Role in domestic violence

Economic abuse in a domestic situation may involve:

• preventing a spouse from resource acquisition, such as restricting their ability to find employment, maintain or advance their careers, and acquire assets
• preventing the victim from obtaining education
• limiting the amount of resources to use by the victim, by putting them on an allowance or closely monitoring how the victim spends money
• spend victim's money without his/her consent and creating debt, or completely spend victim's savings to limit available resources
• exploiting economic resources of the victim

In its extreme (and usual) form, this involves putting the victim

Victimisation

Victimisation is the process of being victimised or becoming a victim. Research that studies the process, rates, incidence, and prevalence of victimization falls under the body of victimology.-Peer victimisation:...

 on a strict "allowance", withholding money at will and forcing the victim to beg for the money until the abuser gives them some money. It is common for the victim to receive less money as the abuse continues. This also includes (but is not limited to) preventing the victim from finishing education

Education

Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

 or obtaining employment

Employment

Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...

, or intentionally squandering or misusing communal resources.

A controlling mechanism

Economic abuse is often used as a controlling mechanism as part of a larger pattern of domestic abuse, which may include verbal

Verbal abuse

Verbal abuse is best described as a negative defining statement told to you or about you; or by withholding any response thus defining the target as non-existant...

, emotional

Psychological abuse

Psychological abuse, also referred to as emotional abuse or mental abuse, is a form of abuse characterized by a person subjecting or exposing another to behavior that may result in psychological trauma, including anxiety, chronic depression, or post-traumatic stress disorder...

, physical

Physical abuse

Physical abuse is abuse involving contact intended to cause feelings of intimidation, injury, or other physical suffering or bodily harm.-Forms of physical abuse:*Striking*Punching*Belting*Pushing, pulling*Slapping*Whipping*Striking with an object...

 and sexual abuse

Sexual abuse

Sexual abuse, also referred to as molestation, is the forcing of undesired sexual behavior by one person upon another. When that force is immediate, of short duration, or infrequent, it is called sexual assault. The offender is referred to as a sexual abuser or molester...

. Physical abuse may include threats or attempts to kill the spouse. By restricting the victims access to economic resources, the offender has limited recourses to exit the violent relationship.

The following are ways that abusers may use economic abuse with other forms of domestic violence:

• Using physical force, or threat of violence, to get money.
• Providing money for sexual activity.
• Controlling access to a telephone, automobiles or ability to go shopping, forms of isolation.
• Threatening to remove their spouse and children from the house without financial support.
• Exploiting her economic disadvantage.
• Destroying or taking resources from the spouse and/or children.
• Blaming that it is done because the spouse cannot manage money, let's the offender do it, or that the spouse instigates forms of economic abuse, such as destruction of property.

Victimization occurs across all socio-economic levels and when victims are asked why they stay in abusive relationships, lack of income is a common response.

Job related impacts

There are several ways that abusers may impact a victim's economic resources. As mentioned earlier, the abuser may refuse the victim to work or make it very difficult to maintain a job. They may likewise impede their ability to obtain an education. Frequent phone calls, surprise visits and other harassing activities interfers with the spouse's work performance. In couples where the spouse is a lesbian, gay, bisexual, transexual or questions their sexuality (LBGTQ), the abuser may threaten to "out them" with their employer.

The National Coalition Against Domestic Violence

National coalition against domestic violence

National Coalition Against Domestic Violence is an organization founded in 1978 in Washington, D.C. with a goal to “organize our collective power by advancing transformative work, thinking and leadership in communities and individuals who seek to end violence in our lives.” The organization not...

 in the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 reports that:

• 25% - 50% of victims of abuse from a partner have lost their job due to domestic violence.
• 35% - 56% of victims of domestic violence are harassed at work by their partners.

Impact of lack of economic resources

By denying the victim access to money, such as forbidding the victim from maintaining a bank account, he or she is totally financially dependent upon the abuser for shelter, food, clothing and other necessities. In some cases the abuser may withhold those necessities, also including medicine and personal hygiene products. They may also greatly limit their ability to leave the abusive situation by refusing to pay court-ordered spousal or child support.

Abusers may also use force their spouse to obtain credit and then through negligent activities ruin their credit rating and ability to get credit.

Managing economic abuse

There are several ways to manage economic abuse: ensure you have safe access to important personal and financial records, ensure your research activities are not traceable and, if you believe you are going to leave the relationship, prepare ahead of time.

Role in elder abuse

The elderly are sometimes victims of financial abuse from people within their family:

• Money or property is used without their permission or taken from them
• Their signature is forged for financial transactions
• Coerced or influence to sign over deeds, wills or power of attorney
• Deceived into believing that money is exchanged for the promise of lifelong care

Family members engaged in financial abuse of the elderly may include spouses, children, or grandchildren. They may engage in the activity because they feel justified, for instance, they are taking what they might later inherit or have a sense of "entitlement" due to a negative personal relationship with the older person. Or they may take money or property to prevent other family members from getting the money or for fear that their inheritance may be lost due to cost of treating illnesses. Some times, family members take money or property from their elders because of gamling or other financial problems or substance abuse.

It is estimated that there may be 5 million elderly citizens of the United States subject to financial abuse each year.

United States

The Survivors’ Empowerment and Economic Security Act was introduced by the 110th United States Congress

110th United States Congress

The One Hundred Tenth United States Congress was the meeting of the legislative branch of the United States federal government, between January 3, 2007, and January 3, 2009, during the last two years of the second term of President George W. Bush. It was composed of the Senate and the House of...

to the Senate (S. 1136) and House of Representatives (H.R. 2395) to allow for greater economic freedom for domestic violence victims by providingng short-term emergency benefits where needed, guaranteeing employment leave and unemployment compensation, and prohibt insurance restriction or job descrimination to domestic violence victims.

Further reading

• Manisha Thakor and Sharon Kedar. (2007). On My Own Two Feet: A Modern Girl’s Guide to Personal Finance. Adams Business. ISBN 1598691244.
• Manisha Thakor and Sharon Kedar. (2009). Getting Financially Naked: How To Talk Money With Your Honey. Adams Media. ISBN 1440502013.