How Are Threats via Shared Finances Addressed Under Domestic Violence Laws?

Threats and coercion involving shared finances are a serious form of economic abuse, which is increasingly recognized under domestic violence laws. In these cases, an abuser may use financial resources or control over shared financial accounts (such as joint bank accounts, credit cards, or household budgets) to manipulate, intimidate, or control their partner. Domestic violence laws in many jurisdictions now specifically address financial abuse as part of broader efforts to protect victims of intimate partner violence and offer them the tools needed to regain financial independence and safety.

How Domestic Violence Laws Address Financial Abuse and Threats via Shared Finances

Recognizing Financial Abuse as Part of Domestic Violence:

Financial abuse is often used as a tactic by abusers to maintain control over the victim by restricting their access to money, assets, or employment. This form of abuse includes tactics such as:

• Threatening to withdraw or withhold funds from shared accounts.
• Coercing the victim into taking on debt in their name.
• Using threats of financial ruin, foreclosure, or eviction to intimidate or control.
• Forcing the victim to share their earnings or use their financial resources for the abuser's benefit.

Many states now explicitly include financial control and economic abuse in their definitions of domestic violence. As a result, victims who are threatened or coerced via shared finances may have legal recourse under domestic violence laws.

Protective Orders and Financial Relief:

Courts may issue protective orders (or restraining orders) that prevent the abuser from controlling or interfering with the victim’s financial resources. These orders may include:

• Prohibiting the abuser from accessing joint accounts or using shared financial resources.
• Directing the abuser to return any financial assets or property that was taken without the victim’s consent.
• Requiring the abuser to pay for expenses such as medical bills, housing, or legal fees, which can help the victim regain financial stability.

Freezing Joint Accounts:

In cases where a victim fears financial manipulation or threats through joint accounts, they may request that a court order the freezing of those accounts or the removal of the abuser’s access. This helps ensure the victim can retain control of their financial resources and stop the abuser from threatening them through financial means.

Dividing Shared Assets and Debts:

When a couple is going through a divorce or legal separation, courts can address the division of shared assets and debts. In cases of financial abuse, courts may:

• Ensure the victim is not forced to share debts accrued by the abuser under duress.
• Order a fair distribution of assets, even if the abuser used financial threats to manipulate the victim during the marriage or relationship.

In some cases, courts may also protect the victim’s assets by separating their financial holdings from the abuser's control, ensuring they are not harmed by future financial threats.

Financial Compensation and Economic Support:

Some domestic violence laws allow victims to seek economic compensation for the financial abuse they suffered. This might include compensation for lost wages, costs associated with relocation, or financial harm caused by the abuser’s threats. Additionally, in divorce or domestic violence cases, survivors may be entitled to alimony or spousal support if the abuse has left them economically dependent on the abuser.

Access to Financial Independence:

Legal protections under domestic violence laws may also help the victim establish financial independence. Some jurisdictions provide resources like:

• Financial literacy programs to help victims rebuild their credit and understand their financial rights.
• Access to victim compensation funds that can assist with immediate financial needs, including temporary housing, medical expenses, or legal fees.

How Courts Protect Victims from Financial Threats

Restricting Access to Financial Resources:

When an abuser uses financial resources to threaten or control a victim, the court can issue an order that restricts the abuser’s access to shared financial accounts or assets. This helps prevent further threats or coercion via money and provides the victim with more financial autonomy.

Preventing Harassment and Intimidation:

In some cases, the court may include specific provisions in protective orders to prevent the abuser from contacting the victim to make further financial threats. The order could prohibit the abuser from calling, emailing, or showing up at the victim’s workplace or home to intimidate them into giving up their financial rights.

Protecting the Victim’s Credit and Financial Security:

Many abusers take advantage of their victim’s credit by making unauthorized charges or opening accounts in the victim’s name. Courts may order a credit freeze or help victims place alerts on their credit reports to prevent further damage.

Enforcing Financial Support Obligations:

In cases where the abuser is legally obligated to provide financial support (such as child support or alimony), the court can enforce these obligations more effectively in situations where threats and coercion are involved. If the abuser fails to comply with financial orders, legal consequences may include wage garnishment or contempt charges.

Challenges in Addressing Financial Abuse

Underreporting of Financial Abuse:

Financial abuse is often a hidden form of domestic violence because victims may not recognize it as abuse or may feel financially trapped. Many victims are unaware that financial coercion and control are grounds for legal action under domestic violence laws. Therefore, it can be more difficult to detect and address.

Economic Dependency:

Many victims of domestic violence remain financially dependent on their abuser, making it harder for them to leave the relationship. This financial dependency can act as a barrier to reporting or taking legal action because the victim fears the consequences of losing financial support.

Complicated Asset Division:

In divorce or separation proceedings, it can be challenging to separate finances if the abuser has concealed assets or misused funds. Courts may need to invest more time and resources into investigating the financial situation to ensure fair and just outcomes for the victim.

Example:

A woman who has been financially controlled by her partner, who frequently threatens to withhold funds for household expenses or access to joint accounts if she does not comply with his demands, decides to seek legal protection.

• She files for a protective order in which she requests that the court freeze their joint bank accounts and grant her sole access to her personal accounts.
• The court issues an order that not only prevents the abuser from accessing her finances but also directs him to pay for her living expenses until she can secure alternative housing and employment.
• Additionally, the court orders the abuser to return any funds that he had illegally taken from her accounts and to pay for her legal fees.