BUSINESS NEWS - When people talk about abuse, the focus is often on physical or emotional harm. But abuse can also take a less visible form, one that can leave a person financially dependent, isolated and unable to make decisions about their own future.
Financial abuse involves controlling, restricting or manipulating another person's access to money and financial resources.
It can occur alongside other forms of abuse and may begin with what appears to be financial secrecy or infidelity, such as hiding income, assets or debt from a partner.
There is an important distinction between ordinary disagreements about money and deliberate financial control.
Couples may have different approaches to budgeting or spending, but financial abuse involves patterns of manipulation, secrecy or control designed to limit a person's independence.
Ralene Grobler, Financial Adviser at Momentum Financial Planning, identifies seven warning signs that financial secrecy or control may have crossed the line into financial abuse.
1. Being shut out of financial information
A partner who refuses to share basic information about household finances, including income, accounts, debts or important financial documents, may be creating an unhealthy imbalance of power.
Being denied access to information about your own financial situation can leave you vulnerable and unable to make informed decisions.
2. Having every cent controlled
Another warning sign is when one partner dictates how every cent earned is spent or requires the other person to ask for money for basic necessities.
This can happen even when the person being controlled earns an income or contributes financially to the household.
A healthy financial relationship should allow both partners a degree of financial agency rather than treating one person as entirely dependent on the other.
3. Discovering hidden debt
Hidden debt can have serious financial consequences.
This may include loans, credit cards or other significant financial obligations taken out in your name, or in the partnership's name, without your knowledge or agreement.
Depending on the circumstances and the legal arrangements involved, you could potentially be held responsible for financial obligations you did not knowingly agree to. Unauthorised debt can also have a lasting impact on your credit record and financial security.
4. Interfering with your career
Financial abuse is not always about controlling money that has already been earned.
A partner who repeatedly discourages you from working, pressures you to leave your job or prevents you from pursuing further education or career opportunities may be undermining your ability to earn an independent income.
Over time, this can increase financial dependence and make it more difficult to leave an unhealthy relationship.
5. Controlling your savings
Having your own financial safety net can be an important part of financial independence.
A partner who prevents you from having a personal bank account, takes control of your savings or repeatedly drains money you have put aside may be deliberately removing that safety net.
This can leave you without accessible funds if an emergency arises or you need to make an important decision independently.
6. Signing your name without consent
Forging a signature, entering into financial agreements in your name without your consent or pressuring you to sign documents can have serious consequences.
It can leave you tied to financial obligations you did not agree to and may have legal implications.
Never sign a financial document you do not understand or feel pressured to accept.
7. Cutting you off from support
Financial abuse can become even more difficult to recognise when a partner attempts to isolate you from people who could help.
Be alert if someone discourages you from discussing your finances with trusted family members, friends or professional advisers.
Having access to independent advice and outside support can help you understand your financial position and identify options that may otherwise be difficult to see.
Taking back financial control
Recognising these patterns can be an important first step.
If any of these signs sound familiar, remember that financial abuse is not your fault. Creating a path towards financial independence can help, but it should be approached carefully, particularly if there are concerns about how a partner may react.
A qualified financial adviser can help you understand your financial position and explore options for rebuilding financial independence. Depending on the circumstances, legal advice and specialist support may also be appropriate.
For someone experiencing abuse, safety should come first. If it is safe to do so, keep important financial information and documents accessible and consider speaking confidentially to a trusted professional or support organisation.
If you or someone you know is experiencing abuse, POWA (People Opposing Women Abuse) provides counselling, legal services, shelter and support to victims of gender-based violence, including financial abuse.
POWA: +27 11 591 6803
Financial abuse can be difficult to see, particularly when control develops gradually.
Understanding the warning signs can help people recognise when financial behaviour has moved beyond ordinary relationship disagreements and into a pattern of control.
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