When we think of domestic and family violence, many people immediately picture physical harm. However, under Australian law, family violence can take many forms. One of the more subtle but equally damaging forms is economic abuse.
Economic abuse involves one person using money or financial control to intimidate, isolate, or exploit their partner. It can leave someone feeling trapped in a relationship or struggling to regain financial independence after separation.
This article explains what economic abuse looks like, how coercive control laws in NSW apply, and how the family law system can assist people experiencing financial control or abuse. This information is general only and is not intended as legal advice. You should seek advice tailored to your circumstances.
What Is Economic Abuse?
Economic abuse is recognised as a form of family violence under section 4AB of the Family Law Act 1975 (Cth).
It occurs when one person unreasonably denies their partner financial independence or controls access to money and resources needed for everyday life.
Economic abuse is often not a single incident. Instead, it is usually part of a repeated pattern of behaviour designed to create dependence and limit a person’s ability to make decisions independently.
Examples of economic abuse can include:
- Controlling access to money: Restricting access to bank accounts, monitoring accounts, or requiring all income to be paid into an account controlled by another person.
- Monitoring spending: Requiring permission for everyday purchases, demanding receipts, or closely tracking how money is spent.
- Creating debt without consent: Taking out loans, credit cards, or other financial commitments using another person’s details without informed consent.
- Interfering with employment: Preventing someone from working, discouraging employment, or limiting their ability to earn an income.
Economic Abuse and Coercive Control Laws in NSW
In NSW, coercive control in intimate partner relationships became a criminal offence on 1 July 2024 under sections 54D to 54J of the Crimes Act 1900 (NSW).
The offence applies where an adult repeatedly engages in abusive behaviour towards a current or former intimate partner with the intention of coercing or controlling them, and the behaviour causes the person to fear violence or serious harm.
The maximum penalty for the offence is seven years’ imprisonment.
How Economic Abuse Can Form Part of Coercive Control
Economic abuse is not a standalone criminal offence in NSW. However, financial control can form part of a broader pattern of coercive and controlling behaviour.
Examples of conduct that may be relevant include:
- Financial control: Withholding reasonable financial support or using money to manipulate, punish, or control a partner.
- Restricting independence: Using control over finances to prevent someone from working, leaving the relationship, or accessing essential services.
The law recognises that financial control within a relationship is not simply a private matter and may have serious consequences for a person’s safety and wellbeing.
How Family Law Courts Consider Economic Abuse
While criminal laws focus on preventing and punishing coercive control, the Federal Circuit and Family Court of Australia (FCFCOA) considers family violence when making decisions about parenting, property, and financial matters.
Economic Abuse and Property Settlements
When determining a property settlement, the Court considers each party’s contributions, future needs, and the overall circumstances of the relationship.
Where economic abuse has affected a person’s financial position, earning capacity, contributions, or the value of the asset pool, this may be relevant to the Court’s assessment of a fair division of property.
Each matter is considered based on its individual circumstances and the evidence available.
Read more about property settlements and asset division.
Economic Abuse and Spousal Maintenance
If a person is unable to adequately support themselves after separation due to their financial circumstances, they may be able to apply for spousal maintenance.
The Court considers factors including the applicant’s needs and the other party’s capacity to pay under the Family Law Act 1975.
Economic Abuse and Parenting Arrangements
Evidence of family violence, including controlling or abusive behaviour, can be relevant when determining parenting arrangements.
Under section 60CC of the Family Law Act 1975, the Court must consider family violence and other factors when determining what arrangements are in the best interests of a child.
A parent who uses financial control to intimidate or isolate the other parent may be relevant to assessing the safety and wellbeing of the child.
For more information, see our family law services.
Practical Steps If You Are Experiencing Economic Abuse
If you are experiencing economic abuse or coercive control, taking steps to regain financial independence can feel overwhelming. Support is available, and you do not need to navigate the situation alone.
-
- Secure important documents: Keep copies of identification documents such as your passport, birth certificate, and Medicare card somewhere safe.
- Consider opening a private bank account: If it is safe to do so, opening an account in your own name can help you maintain access to your finances.
- Review your financial position: Check your accounts, debts, and credit report to identify any financial commitments made without your knowledge or consent.
-
- Seek legal advice: A family lawyer can explain your rights, assist with separation and property matters, and advise whether an Apprehended Domestic Violence Order (ADVO) may be appropriate.
- Access support services: Financial counsellors and support services can assist with issues such as coerced debt and financial recovery.
Key Takeaways
- Economic abuse is recognised as a form of family violence under Australian family law.
- Financial control can form part of a broader pattern of coercive control.
- The Family Law Courts consider family violence when making decisions about parenting and financial matters.
- Legal, financial, and support services are available for people experiencing economic abuse.
Resources and Support
If you are in immediate danger: Call 000.
1800RESPECT: National domestic, family and sexual violence counselling service. Call 1800 737 732 or visit 1800RESPECT.
National Debt Helpline: Free and confidential financial counselling. Call 1800 007 007 or visit National Debt Helpline.
Legal Aid NSW: Free or low-cost legal assistance may be available for eligible people experiencing family law issues or domestic violence.
Get Advice About Family Violence and Separation
If you are experiencing economic abuse, coercive control, or family law issues after separation, our experienced family lawyers can provide practical advice about your options.
Contact Somerville Laundry Lomax for a confidential discussion. Call 02 6621 2481 or email [email protected].
This article provides general information only and is not intended as legal advice. You should seek professional advice tailored to your circumstances.