Financial abuse is when one person in the relationship (usually a man) controls their partner’s spending and how they use money for their own personal gains.
Janine Horn, financial adviser at Momentum, said that although financial abuse does not harm a person’s body, it should not be overlooked because many women are forced into a financial prison by their partners.
"It is unfortunate that financial abuse is normalised and is often silent," Horn said.
"Many people do not even know what financial abuse is. In fact, often both the victim and perpetrator do not even realise this abuse is taking place."
Charnel Collins, CEO of National Debt Advisors (NDA), said that while it is often underrated and far less reported, financial abuse is a form of domestic violence.
Collins said that financial abuse takes many forms, including:
– all types of theft
– fraud
– exploitation
– pressure related to wills
– property
– inheritances
– financial transactions
– and the misuse or misappropriation of property, possessions, or benefits
According to Collins, the woman is typically the primary breadwinner in the household, and her partner wants to be in control of the finances.
"Financial abuse is called a hidden form of abuse because partners themselves do not realise it is a form of abuse," Collins said.
Horn shares the five red flags that you may be in a financially abusive relationship:
– Loans are taken out in your name, and you have to make the loan repayments, or the loan repayments are not being made according to the agreement with your partner
– An account is opened in your name by your partner, and that account is controlled by your partner
– Your partner pushes or forces you to leave your job so you can be financially dependent on your partner
– Your partner forces you to turn over your salary or any income to them
– You often carry the financial responsibilities of the household even though you and your partner are both earning incomes.
If you are in a financially abusive relationship, there are ways that you can regain control of your life.
Collins shares tips to help women cope with and get out of a relationship that is financially abusive:
– Start collecting all of the physical and electronic documents for any credit agreement that is in your name
– Ensure that the contact details, such as your cellphone number or email address, on any agreement are yours and that correspondence will be delivered directly to you
– Get your credit report so you know what your debt exposure and creditworthiness look like. It is important to note that you are allowed to get one free credit report from every credit bureau once a year
– Improve your financial literacy and empower yourself by visiting sites that offer information about how to handle your finances
– You are not alone in this situation, find someone you can trust and talk to.
Seugnette van Wyngaard, head of 1st for Women Insurance, said the management of finances for women can be daunting, but that should not be an excuse for handing over complete control to your partner.
"Independent access and control over your money should never be compromised," Van Wyngaard said.
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