"Beyond Physical Harm: Economic Abuse and it's Impact on Divorce in UK"

Economic abuse, also known as financial abuse, is a form of domestic abuse that involves the abuse of a person's finances as a means of control. It can take various forms, including controlling a partner's income, spending, their access to assets, as well as sabotaging their financial independence. Economic abuse is a serious issue that can have a considerable impact on victims' lives, both during and after a relationship.

Recognising Economic Abuse under UK Family Law

The Domestic Abuse Act 2021 (DAA) recognises economic abuse as a form of domestic abuse. This means that victims of economic abuse can now seek protection under the law, including non-molestation orders and occupation orders. The DAA defines economic abuse as any behaviour that has a substantial adverse effect on the ability of another person to whom the perpetrator is personally connected to acquire, use, or maintain money or other property; or obtain goods or services.

This definition encompasses a wide range of behaviours, including:

• Controlling a partner's income or spending
• Preventing a partner from accessing joint accounts or assets
• Sabotaging a partner's credit rating
• Isolating a partner from family and friends
• Forcing a partner to rely on the perpetrator for financial support
• Impact of Economic Abuse on Divorce Proceedings

Economic abuse can have a significant impact on divorce proceedings. Victims of economic abuse may be:

• Financially dependent on their abuser, making it difficult to leave the relationship or afford legal representation.
• Traumatised by the abuse, making it difficult to participate in the divorce process.
• Unfamiliar with their financial situation due to the abuser's control, making it challenging to negotiate a fair settlement.

As a result, economic abuse can create an uneven power dynamic in divorce proceedings, leaving victims at a significant disadvantage. This is where seeking the advice of an experienced legal representative that specialises in the divorce process and the nature of financial disclosure can be vital to getting a settlement that the victim deserves. There may well be applications that can be made to the court in order to protect the interests of the victim and it is often vital that these applications are made early on in the process.

Relevant UK Case Law

Several UK case law decisions have addressed the issue of economic abuse in divorce proceedings. These cases highlight the complexities of economic abuse and the challenges faced by victims in asserting their rights.

This landmark case was the first to explicitly recognise economic abuse as a form of conduct that can be considered in financial remedy proceedings. The court held that the husband's controlling behaviour, including preventing the wife from working and accessing joint funds, constituted economic abuse and had a significant impact on the wife's financial needs.

This case addressed the issue of whether economic abuse can be considered when determining a spouse's financial needs in divorce proceedings. The Supreme Court held that economic abuse could be a relevant factor, but the court must consider the specific circumstances of each case. These cases demonstrate that economic abuse is increasingly being recognised as a significant issue in UK family law. As courts continue to grapple with the complexities of economic abuse, it is crucial for victims to seek legal advice and support to protect their rights and interests in divorce proceedings.

Additional Considerations

In addition to the legal implications, economic abuse can also have a profound emotional and psychological impact on victims. Victims may experience feelings of isolation, helplessness, and worthlessness. They may also have difficulty trusting others and making financial decisions. It is important for victims of economic abuse to seek support from domestic abuse organisations and mental health professionals to help them heal and rebuild their lives.

Economic abuse is a serious form of domestic abuse that can have a devastating impact on victims' lives. The recognition of economic abuse under UK family law is a significant step forward in protecting victims and ensuring that they have access to justice.

If you, or someone you know, is suffering financial abuse and would like the assistance of experienced and specialist legal representation, then get in touch by completing a call back request or calling the office on 0333 9205911 to arrange an initial consultation with one of our team.

Written by Joanne Bennett