Financial Abuse in Australia: What It Is, and What You Can Do

You have no real idea what is in the joint account. Every dollar you spend gets questioned. You asked for money for the kids’ shoes and had to explain the receipt. If any of that sounds like your week, here is the plain answer before anything else.

Yes, this is a recognised form of family violence. The law calls it economic abuse, it can now potentially be seen as a crime, due to it commonly occurring with other domestic and family violence concerns. There are two kinds of help: orders that protect your safety, and family law remedies that deal with the money. This page shows what counts, what does not, and the first step you can take today.

Need help right now? 1800RESPECT is free and open 24/7 on 1800 737 732. For coerced or joint debt, the National Debt Helpline is on 1800 007 007.

What financial abuse actually means

Family law views economic or financial abuse as a form of family violence, because it is a dynamic that is based on the desire to control another person, or cause them harm. Financial abuse covers a wide range of behaviours, including unreasonably denying someone financial autonomy, or withholding the support they need to live.

Family Law Act 1975 (Cth), s 4AB. Victoria defines economic abuse directly in the Family Violence Protection Act 2008 (Vic), s 6.

Here is where a lot of people get caught out. Not every “no” to a purchase is abuse. Asking each other before a big spend is common in healthy relationships, but it isn’t based on control.

“If you have to ask your husband to buy something, is that financial abuse?” That is not financial abuse. That could be part of a very healthy relationship where you’re asking one another before you’re making significant purchases.

The honest line is harder to draw than most pages admit. I have sat across matters where the same facts get told two completely different ways.

One of the parties was claiming that they were a victim of financial abuse, that they were being controlled financially. The other party was saying, “No, I was just putting a budget together. She wanted to buy a $500 blender and I said no, you can’t do that, okay? You can get one from Kmart for $50 because we can’t afford it.” You know, one person’s idea of financial control could be another person’s way of budgeting.

It also gets over-claimed, and the courts have noticed.

The term financial abuse is something that’s getting more and more thrown around, especially in the family courts. We’ve seen many examples of people try and raise this as a means of demonstrating that they were abused during the relationship in order to get more from a property settlement.

Drawing that line for your situation is exactly what a family lawyer does.

The signs

Real financial abuse tends to look like a pattern, not a single argument. Common forms:

• Controlling all the household income and giving you an allowance
• Sabotaging your job or stopping you from working
• Running up debt in your name
• Withholding money for essentials like food, medicine, or the kids
• Hiding assets, accounts, or income

How common it is

This is not rare, and it is not cheap. A CommBank and Deloitte study put the direct cost to victims at $5.7 billion a year, affecting an estimated 600,000 Australians (Cost of financial abuse in Australia, 2022).

Is financial abuse a crime in Australia?

On its own, financial abuse is generally not a standalone offence. But it rarely travels alone. In NSW, a pattern of controlling behaviour toward a current or former partner, including controlling what they spend money on, is now the criminal offence of coercive control.

Coercive control laws are now in full effect and it’s looking at the whole picture aside from physical violence. It’s about building a case about people that are controlling their partners, what they’re wearing, who they’re speaking to, whether they’re allowed to go to work, what they’re spending money on. And these patterns of behavior, when they’re put together, they’re now a criminal offense.

The key word is pattern. This is a course of conduct over time, not a single act.

Crimes Act 1900 (NSW), s 54D, in force 1 July 2024, maximum penalty 7 years.

Does financial abuse affect a property settlement?

This is the part most explainers miss. If you were controlled financially, that can now count when your assets are divided.

One of the biggest shifts: the courts now have to consider the financial impact of family violence when deciding how to divide assets. That means if someone was in a controlling relationship where they weren’t allowed to work, had no access to money, or were financially manipulated and controlled, that can now be factored into the final property settlement.

Since the 2024 reforms, the court weighs the effect of family violence, including economic abuse, on each person’s contributions and future needs when dividing property. There is also a duty of full and frank disclosure, so money that was hidden can be brought back into the pool. If ongoing support is the issue, spousal maintenance is a separate lever.

Family Law Act 1975 (Cth), s 79 (property), with spousal maintenance under s 72 and s 75(2).

If this is your situation, our property settlement page walks through how the pool is divided.

Elder financial abuse

Financial abuse is not only a partner problem. For older people it often comes from an adult child or a carer misusing account access, a power of attorney, or an inheritance expectation. Around 2% of older Australians report financial abuse (AIFS National Elder Abuse Prevalence Study, 2021).

Can you apply for an AVO for financial abuse?

Short answer: sometimes, but understand what it does. In NSW the order is an ADVO, and you can apply for an AVO where financial abuse is part of a wider pattern of domestic or family violence. It protects your safety. It does not directly recover or protect your assets, so it works alongside the family law remedies above, not instead of them.

In practice an ADVO starts one of two ways: police apply on your behalf, or you make a private application through the Local Court. Other states and territories use equivalent orders under different names, such as intervention orders, family violence intervention orders (FVIOs) or domestic violence orders (DVOs).

Where to get help now

• 1800RESPECT, 1800 737 732, free and 24/7 for domestic and family violence (support and information)
• National Debt Helpline, 1800 007 007, for coerced or joint debt
• Moneysmart, practical guidance on financial abuse

If you want to understand your specific position, that is what me and my team are here for. Book a free discovery call with our family lawyers on 1300 614 732. We will explain your rights, the practical next step, and how the money side actually works. No pressure, no judgment.