In life, people can have complicated relationships with money. Jane Monica-Jones from the Financial Wellbeing Company knows this well, working as a financial therapist helping people to address the psychological and behavioural aspects of financial management to ultimately help people repair their relationship with money.

Jane recently spoke with Equifax team members on recognising financial coercive control in relationships. This is an important topic that often hides in plain sight, with Jane describing financial control as quiet, subtle and deeply confusing to those experiencing it.

First up, what is coercive control?

Coercive control is about a pattern of controlling behaviour that is ongoing, repetitive and cumulative in nature. It may include physical abuse, non-physical abuse, or a combination of both. As a form of non-physical abuse, financial control can form a part of coercive control.

Of course, in many relationships, whether that’s romantic, family or business, there is often a split in who manages finances and how. When the management of finances tips over into a form of coercive control, it creates fear and strips away liberty and autonomy.

One of the reasons why financial abuse can be hard to spot is that it often masquerades as care or practicality. As Jane describes, it can be someone saying “I’ll handle the bills, you’re not good at money” or “It’s easier if I just manage the finances”. Sometimes, this is an agreement all parties enter into willingly - the difference for financial control is when a person starts to think these actions leave them feeling unsafe, unequal or disempowered.

Tip: If you’re in a relationship where one person has taken responsibility for finances by mutual agreement, make sure you have access to accounts, know where documents are and so on. Jane recommends that the person who takes responsibility for finances can help to build the other person’s financial confidence by bringing them along to meetings with financial advisors or accountants, for example.

What is financial coercive control? How can you recognise it?

Financial coercive control is described by Jane as “when money is used to dominate, restrict, or undermine another person’s freedom. It is a pattern of behaviour that uses money to limit someone’s safety or independence. It’s often part of a wider pattern of coercive control behaviours that aim to limit another’s choices or confidence.”

Financial control and economic abuse in romantic relationships is incredibly common. The Australian Institute of Health and Welfare reports that 16% (1.6 million) of Australian women and 7.8% (745,000) of men have experienced economic abuse from a current or previous partner.

This can include things like:

• Controlling or monitoring purchases, including withholding money for essentials like food, rent or medication or demanding receipts to track everyday spending
• Restricting access to bank accounts, passwords or financial information
• Forcing someone to sign loans, credit card applications or financial contracts
• Undermining a partner’s work or education so they remain financially dependent
• Withholding financial information or decisions
• Not making child support payments after relationship separation
• Making demands for further, or excessive, dowry payments.

The Australian Government Attorney-General’s Department has more information about coercive control and economic and financial abuse, including fact sheets in a range of languages.

What type of relationships can include financial coercive control?

Financial coercive control can be found in all types of relationships. It can happen in:

• Romantic partnerships
• Family relationships, for example between parents and children, in either direction, with elder financial abuse a significant issue
• In workplaces, for example business partnerships.

Financial coercive control can also take place with people at any income level. It is frequently about creating dependence and exerting control rather than the money itself.

The impact of financial coercive control

If you’re experiencing financial control you may feel:

• Scared to talk about money
• Trapped in a relationship because you can’t access money to leave or have been put into debt by a partner or family member
• Like you can’t make decisions about money.

According to Jane, the impact of financial abuse can affect people emotionally and physically, as well as financially. “The impact ripples far beyond just bank balances. It can cost us emotionally. It may make us feel anxious. We may lose a sense of confidence. We feel that we might doubt ourselves and we may feel some shame around it physically. It can cause stress, resulting in headaches, sleep issues and chronic tension.”

Financial abuse can also impact your credit score, especially if you incur debt as a result. If you lose access to your savings, or need to use credit in an emergency when leaving a relationship, that can also negatively impact your credit history if you are unable to pay promptly.

As Jane says, “For many, the harm of financial abuse comes after, when a relationship ends. You may realise you have been experiencing coercive control or economic abuse and end the relationship. But because of shared debt, you might have legal costs. This can lead to people having a trauma response; you might become hypervigilant around money.”

Where can you get help?

Nobody has the right to control you, hurt you or make you live in fear. There is support available to help if you think you are experiencing financial coercive control or economic abuse.

As economic abuse and coercive control can be a precursor to physical violence, in an emergency please call 000.

Other support services include:

• 1800RESPECT - 1800 737 732 (available 24/7)
• National Disability Abuse and Neglect Hotline - 1800 800 052
• Men’s Referral Service – 1300 766 491
• National Debt Helpline - 1800 007 007
• Lifeline – 13 11 14
• Workplace employee assistance programs
• Financial counsellors.

Build your financial confidence

Recovery from financial coercive control isn't just about rebuilding finances, it's also about building a sense of safety, autonomy and trust. To help build your financial confidence, Equifax has a range of resources at the Financial Inclusion Hub.

You can also proactively manage your financial health with one of the credit and identity protection plans from Equifax, giving you tools to help you monitor your credit score and be alerted to risks of identity theft.

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