When Money Becomes a Means of Control

Financial control can be one of the least visible forms of coercive control. It may be disguised as “managing the household finances”, being “better with money”, or simply taking responsibility for financial decisions. But there is an important difference between managing finances by agreement and using money to restrict another person's independence, choices or ability to leave a relationship.

Economic and financial abuse is recognised as a form of family violence under the Family Law Act 1975 (Cth). Importantly, its effects may also be relevant when the court determines how property should be divided after separation. The current Act includes family violence within its statutory framework. [legislation.gov.au], [legislation.gov.au]

What does economic abuse look like?

Economic or financial abuse can take many forms. It may involve one person controlling access to bank accounts or assets, including superannuation; preventing or interfering with the other person's employment or income; forcing them to assume financial or legal liabilities; accumulating debt in their name without their knowledge; or withholding financial support needed to meet reasonable living expenses.

In practice, the pattern might involve one partner:

• controlling all accounts and requiring the other to account for every purchase;

• preventing the other from accessing financial information;

• discouraging or preventing them from working or advancing their career;

• creating debts or liabilities in their name;

• withholding money for ordinary household or children's expenses; or

• deliberately maintaining their financial dependence.

The important point is that economic abuse does not need to involve physical violence to be significant. Money itself can become the means through which independence and freedom are restricted.

What can economic abuse mean for a property settlement?

The reforms to Australia's property settlement laws that commenced on 10 June 2025 brought the effect of family violence expressly into the statutory property framework. That is important because family violence can have financial consequences that extend well beyond the abusive behaviour itself.

At the contributions stage, the effect of family violence may be relevant to assessing a party's contributions during the relationship.  For example, coercive or economically abusive behaviour may have made it more difficult for a person to work, maintain a career, contribute financially, care for children or perform the many unpaid tasks involved in maintaining the family and household.

The legislation also allows the effects of family violence to be considered when assessing the parties' current and future circumstances.  That can be particularly important in cases of economic abuse. Its consequences may continue long after separation, whether through reduced earning capacity, interrupted employment, debt, diminished financial resources or health consequences affecting a person's capacity to work.

The focus, however, is not simply on proving that family violence occurred. There needs to be evidence of its effect.

From Kennon to the current legislation

The relationship between family violence and property settlement is not entirely new.  For many years, Australian family law has recognised, through cases including Kennon v Kennon [1997] FamCA 27, that family violence may be relevant where its effect made a person's contributions significantly more arduous than they otherwise would have been.

The legislative reforms are nevertheless important because the effect of family violence is now expressly addressed within the statutory property settlement framework. For clients experiencing economic abuse, this allows the financial consequences of family violence to be examined more directly as part of the overall property case.

It is not an automatic financial adjustment

This is an important distinction.  Economic abuse does not automatically entitle someone to a particular percentage of the property pool. Nor are the property provisions a damages regime that simply attaches a monetary value to abusive behaviour.  The court still determines what orders are appropriate by applying the statutory property settlement framework to the evidence in the particular case.  That makes the connection between conduct and effect critical to a family law case.

If one party prevented the other from working, for example, the relevant evidence may include not only proof of the controlling behaviour but also evidence about the employment or career opportunities that were affected and the continuing consequences for that person's earning capacity. Similarly, if debts were accumulated without a person's knowledge or consent, the financial documents establishing those liabilities and the circumstances in which they arose may become important.

The strongest case therefore does more than identify the abusive behaviour. It shows what that behaviour did to the person's financial position.

Building the financial picture

Where economic abuse has been part of a relationship, obtaining financial information early can make an enormous difference.

Bank and account records
These may help establish who had access to accounts, how money was controlled and whether spending was monitored or restricted.

Employment and income records
Payslips, employment records, tax documents and communications concerning work may help demonstrate interruptions to employment, lost opportunities or interference with earning capacity.

Loan and debt documents
Identify liabilities in your name, particularly debts you did not understand, authorise or know had been incurred.

Superannuation records
Keep statements and other documents demonstrating your superannuation interests and contribution history.

Records of financial support
Where money for ordinary living expenses was withheld, contemporaneous bank records, messages and other communications may assist in establishing what occurred.

Evidence of longer-term consequences
Where the abuse affected health or capacity for employment, relevant medical or counselling evidence may help establish the continuing effect.  Where it is safe to do so, preserving the original records is preferable to trying to reconstruct the financial history much later.  And safety matters here too. If a partner monitors devices, email accounts or banking activity, documents should not be collected or stored in a way that creates additional risk.

Why early legal advice matters

Economic abuse cases can require more than simply identifying the asset pool.  They may require careful reconstruction of the parties' financial history: who controlled the money, which liabilities were incurred and why, how employment was affected, what financial opportunities were lost, and whether the consequences continue after separation.

The legislative reforms are also relatively recent. The family law courts will continue to develop their approach to the application of these provisions as cases involving different forms and consequences of economic abuse come before them.  For that reason, early advice can be particularly valuable. The objective is not merely to demonstrate that controlling behaviour occurred, but to identify the evidence connecting that conduct with its financial consequences.

When financial control has lasting consequences

Money can be used to restrict independence just as effectively as threats or intimidation.  And separation does not necessarily undo the financial damage. A person may leave a relationship carrying debts, diminished earning capacity, limited superannuation, interrupted career progression or a financial position shaped by years of control.  The law now provides a clearer framework for those consequences to be considered in property proceedings.

If you believe economic abuse has affected your financial position, Monica and our family law team can help you identify the conduct that may be relevant, trace its financial consequences and determine what evidence is needed to present your property case clearly and effectively.