Financial Abuse Explained & Legal Action You Can Take

Financial abuse can be just as common as physical or sexual abuse, but you can be financially abused without even realising it.

Financial abuse is a form of domestic violence. If you suspect you are being impacted by financial abuse, you need to obtain legal advice.

Contact our family lawyer on (07) 5532 3199 or send us a message.

A Recent Case Demonstrating Financial Abuse

In the recent case of Testa v Fields, the court, while making a decision about the best interests of a child, addressed concerns of family violence by the father to the mother.

The court accepted that by denying the mother access to their bank accounts, he was financially abusing the mother. The court labelled this as controlling conduct. The father also cut the gas and electrical connections to the granny flat where the mother was living.

This determination of financial abuse follows an earlier decision of Rankin v Rankin.

Here, Mrs Rankin was solely dependent on Mr Rankin for all of her expenses. To meet these expenses, the husband had given the wife credit cards to use, which he paid off. After the couple separated, he cancelled her credit cards, and additionally, cancelled the phone and internet services to the house, failed to meet the mortgage payments and pay assessed child support.

The court determined this to be financial abuse, as Mr Rankin’s actions left his wife unable to support herself and their children while they were financially dependent upon him.

Domestic Violence

Also known as economic abuse, financial abuse is a form of domestic violence, under s12 of the Domestic and Family Violence Protection Act in Queensland, and s4AB of the Family Law Act.

It involves someone controlling you through money without your consent.

Financial abuse can take on many forms, not just withholding money. These include:

Having limited or no access to bank accounts;
Being unable to meet normal household expenses because you are financially dependent on someone else;
Being prevented from seeking or keeping employment; or
Being forced to take out a loan for someone else.

A financially abusive person may do things like:

forging your signature on cheques or legal documents;
withdrawing or transferring large amounts of money from your bank account;
using your credit card;
cancelling or hiding bank or credit card statements;
using bill, rent or mortgage money for something else;
selling your property without your knowledge or consent.

What are my options as a victim of financial abuse?

As financial abuse is a form of domestic violence, you may be entitled to obtain protection by way of a domestic violence order (DVO), which may cease the financial abuse.

Seek legal advice

If you would like advice in respect of financial abuse, we invite you to contact our Family Lawyer, Otilia De Sousa, for an initial consultation on (07) 5532 3199.

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Frequently Asked Questions

What is financial abuse and how is it defined as domestic or family violence?

Financial abuse (also known as economic abuse) is recognised as a form of domestic violence under Australian law. It generally occurs when one person controls another person through money without their consent.

Financial abuse may involve restricting access to finances, manipulating someone’s financial resources, or using financial dependence to exert control over a partner or family member.

What are common signs of financial abuse in a relationship?

Financial abuse occurs when a person controls another person’s access to money or assets, often in a family, domestic, or household context. It may not always be obvious.

Signs for the victim (what they may experience)

Limited or no access to personal or joint bank accounts
Inability to pay for normal household expenses due to financial dependence
Being prevented from seeking or keeping employment
Being forced to take out loans or credit for the perpetrator’s benefit

Signs for the perpetrator (what they may do)

Forging the partner’s signature on cheques or legal documents
Withdrawing or transferring money without consent
Using the victim’s credit cards without permission
Cancelling or hiding bank or credit card statements
Using money intended for bills, rent, or mortgage payments for other purposes
Selling property without the victim’s knowledge or consent

These behaviours are considered controlling conduct and can amount to financial abuse under family law in Queensland.

Can restricting access to joint bank accounts be considered controlling conduct?

Yes. Courts may treat denying a partner access to shared finances as controlling conduct and a form of financial abuse.

What examples have courts treated as financial abuse?

Courts have recognised several behaviours as financial abuse in family law cases.

Testa v Fields

In this case, the court found financial abuse where a father:

Denied the mother access to bank accounts
Cut the gas and electricity to the property where she was living

The conduct was considered controlling behaviour and family violence.

Rankin v Rankin

In another case, financial abuse was found where a husband:

Cancelled his wife’s credit cards
Cancelled the phone and internet services at the home
Failed to pay the mortgage
Failed to pay assessed child support

Because the wife and children were financially dependent on him, these actions left them unable to support themselves. The court determined this behaviour amounted to financial abuse.

What legal protections are available if I am experiencing financial abuse in Queensland?

Because financial abuse is recognised as a form of domestic violence, people experiencing this conduct may have access to legal protections.

If you believe you are being financially abused, it is important to obtain legal advice to understand your options and what steps can be taken to protect you.

Can I apply for a Domestic Violence Order (DVO) for financial abuse?

Yes. Because financial abuse is classified as domestic violence, a person experiencing this conduct may be entitled to seek protection through a Domestic Violence Order (DVO).

A DVO can be used to stop the abusive behaviour and provide legal protection from further financial control or abuse.

How can financial abuse affect parenting matters and decisions about children?

Financial abuse may be considered by courts when determining matters involving children.

For example, in Testa v Fields, the court examined allegations of financial abuse when deciding the best interests of a child in parenting proceedings. The conduct of denying access to bank accounts and cutting utilities was treated as family violence in that context.

What should I do if I suspect financial abuse?

If you believe you are experiencing financial abuse, it is important to seek legal advice as soon as possible to understand your rights and the protections available to you.

ABKJ Family Lawyers can help you assess your situation and advise you on whether legal options, such as a Domestic Violence Order, may be appropriate.