Our society often fails to recognize domestic violence and domestic abuse, whether due to a lack of concern or a lack of knowledge. Unfortunately, that failure has infiltrated family law systems and processes, and victims of abuse often struggle to prove the abuse exists when there is little tangible evidence. Financial abuse is one form of abuse that can be difficult to recognize, and difficult to prove. The abuser’s actions may be subtle, yet the control, manipulation, and abuse are ever-present.
Financial Abuse During Marriage
Victims of financial abuse may not recognize the signs immediately. As in many abusive relationships, the abuser may start with small, manipulative acts that don’t raise significant concerns. Stealing money, running up credit card debt and refusing to pay the bill, providing a limited “allowance,” or forcing you to provide your paycheck or other asset to them may be obvious signs of abuse; however, financial abusers may also commit less obvious acts such as convincing you to work in a family business for no pay, convincing you to stop working or attending school, or requiring that you account for every transaction you make. Before you realize it, your life is being controlled by your spouse, who determines how each hard-earned dollar is spent. Some feel as if they have no way out, as their spouse has accounted for every dime and they don’t have any other financial resources that would allow them to leave their abusers.
Another less obvious issue arises when your spouse is hiding assets or transferring them to individuals for less than fair market value. You may be unaware of these transactions until you’re going through the divorce process. However, through the discovery process, your spouse will be required to answer questions under oath and provide documents detailing their transactions, giving you a better picture of the state of your finances. A forensic accountant may also be necessary if you believe your spouse is hiding assets. Other documentation such as texts, emails, or financial statements will be helpful to prove the financial abuse throughout your marriage.
2. Financial Abuse During Divorce
Many people have heard that abusers utilize the court systems to further their abuse. This is unfortunately true in many cases, and financial abuse is not the exception. We have seen spouses run up credit card debt following separation, take significant loans out of their retirement, or refuse to provide financial support for their spouse or children. In situations such as these, you may have to seek court intervention to prevent your spouse from further dissipating the marital estate.
If your case is litigated, you have to present evidence to the court of the financial abuse, taking accounts into debt, paying for large expenses, and large or unusual transfers. You also have to make sure you are presenting evidence of more subtle abuse, such as controlling all assets, setting unreasonable spending caps, limiting your purchases, or forcing you to provide your assets or paycheck to them. You may need to seek an accountant or other professional that can help provide evidence of the financial abuse to the court, and your testimony will be important to demonstrate the abuse and control.
Even in a non-litigated divorce, your spouse may try to control the division of the marital estate, citing reasons such as their status as the breadwinner. They may go for an “all or nothing” approach, trying to coerce you into accepting their offer for an equitable division or they’ll make sure you walk away with very little. In Nebraska, all assets incurred during the marriage are considered marital property, whether incurred by one spouse or both. The court requires an equitable division of that property even if everything is agreed upon by the parties. Make sure your attorney knows the details of the abuse and control by your spouse so they can ensure that you are protected moving forward.
It is important to be aware of the signs of financial abuse so that you can protect yourself moving forward. Our office knows and respects that every case is unique and we are experienced in recognizing the signs of financial abuse and control. If you’d like to schedule a consult to discuss your options, please give us a call at 402-548-5418.