Financial Abuse: What is it and Why it Matters in Divorce?~3 min read

Divorce is often an emotionally challenging time, but when financial abuse is involved, the situation can become even more complicated. Understanding what financial abuse is and recognizing its signs is crucial, especially if you’re going through a divorce.

What is Financial Abuse?

Financial abuse is a form of domestic violence where one spouse exerts control over the other’s financial resources. This control can be through manipulation, intimidation, or outright theft. The goal of the abuser is to dominate and control the victim, making them financially dependent and less likely to leave the abusive relationship.

Signs of Financial Abuse

Recognizing financial abuse can be difficult, especially if it has been a gradual process. Some common signs include:

1. Restricted Access to Money: If your spouse controls all the finances and gives you a strict allowance, this is a red flag.
2. Hidden Assets: Your spouse may hide money or assets from you, leaving you unaware of the full financial picture.
3. Excessive Monitoring: If your spouse closely monitors your spending and demands receipts or explanations for every purchase, this can be a sign of financial abuse.
4. Preventing Employment: An abuser may prevent you from getting or keeping a job, ensuring you have no independent source of income.
5. Debt without Consent: If your spouse has taken out loans or opened credit accounts in your name without your knowledge, this is a clear sign of financial abuse.

Why Financial Abuse Matters in Divorce

Financial abuse can have a significant impact on divorce proceedings. Here’s why it matters:

1. Division of Assets: In Texas, a community property state, assets acquired during the marriage are typically divided equally. If your spouse has hidden assets or manipulated finances, it can skew the division process.
2. Spousal Support: If you’ve been financially dependent on your spouse due to abuse, you may be entitled to spousal support. Proving financial abuse can be critical in securing the support you need.
3. Debt Responsibility: Financial abuse often includes incurring debt in the victim’s name. It’s important to identify these debts and ensure they are accounted for in the divorce settlement.

Steps to Take if You’re a Victim of Financial Abuse

If you suspect you are a victim of financial abuse, there are steps you can take to protect yourself:

1. Gather Evidence: Collect financial documents, bank statements, and any evidence of hidden assets or unauthorized debts.
2. Seek Legal Advice: Contact a divorce attorney who has experience with financial abuse cases. They can help you navigate the legal complexities and ensure your rights are protected.
3. Open a Separate Account: If possible, open a bank account in your name only to safeguard your finances.
4. Work with a Financial Advisor: A financial advisor can help you understand your financial situation and plan for your future.

Contact Springer & Lyle

Financial abuse is a serious issue that can complicate the divorce process. Understanding the signs of financial abuse and taking steps to protect yourself can help you achieve a fair and equitable settlement. Remember, you don’t have to face this challenge alone; there are professionals who can support and guide you through this difficult time.

If you have questions regarding financial abuse, divorce or any family law matter, contact experienced family law attorney Daniel Abasolo at 940.387.0404 to schedule a consultation. Springer & Lyle is located at 1807 Westminster, Denton, TX 76205.