Financial Abuse: The Hidden Factor in Many Divorces

If you are going through a divorce, you may be focused on pressing day-to-day matters – like parenting schedules, property division, and how best to move forward.  But for some people, there is undercurrent that also shapes the breakdown of the relationship: Financial abuse.

It’s a kind of abusive conduct can develop gradually, and be difficult to recognize.  It might also be obscured by other types of abuse (such as emotional of physical abuse) that tend to take prominence on your mental landscape.

But make no mistake:  The effects of your spouse’s financial abuse can be long-lasting, and highly destructive.

If you’re in a situation where you think you are being abused and controlled through financial means, here are some of the more common ones we hear from our clients.

Q: What is financial abuse in a marriage?

A: Financial abuse occurs when one spouse uses money or access to financial resources to control the other.

Q:  What are the signs?

A:  If you’re the victim of this type of abuse, some of the warning signs you’ll see can include:

• Not being allowed to see the financial documents or bank statements (whether family-related, or those specific to your spouse).
• Being forced to hand over your paycheck to your spouse, and having no control or input on how it’s spent.
• Being pressured to justify every expense, even those incurred for the family’s benefit.
• Being prevented from working to earn or your own money, or being prevented from pursuing your education.

Sometimes financial abuse will involve more hidden behaviour, such as where your spouse:

• Secretly accumulates debt in your name.
• Conceals his or her income from you, so that you’re never sure of the financial situation.
• Moves assets without your knowledge.

Q:  How does financial abuse affect divorce?

A: Your spouse’s financial abuse can put you at a big disadvantage in your divorce.

For one thing, you may not have access to the funds that will get you good legal representation.  Also, you will likely be entering the separation process without a clear picture of your own or your household/family finances.  This can make the process uncertain and intimidating.

Q:  How can the law protect me?

A: Canadian divorce law is designed to level playing field, especially when there’s financial abuse is in the mix.   Specifically:

• The divorce process requires transparency; Courts expect both spouses to participate honestly.
• Your abusive spousal will be compelled to disclose all aspects of the finances in full.
• This process will help identify any financial abuse early.
• It will result in the appropriate steps being taken to secure information, and protect assets.

Q: What are my rights to financial information?

A: If you are separating, you have the right to full financial disclosure from your spouse. This includes:

• Income records
• Tax returns
• Bank and investment statements
• Pension information
• Details of debts and liabilities.

Q:  What if my partner does not cooperate in disclosing the finances?

A: Disclosure is a cornerstone of family law. If your spouse refuses to provide documents, there is recourse built into the legal system:

• First, your lawyer can request them formally and, if necessary, ask the court to order your spouse to comply.
• Courts can also impose consequences for failing to disclose, including cost awards or drawing negative conclusions about your spouse’s financial position.

Also, the Family Law system expressly builds in many ways to reveal the true financial picture, redress financial imbalance, and make your divorce outcome fair:  For example, it includes property division and equalization processes, and addresses situations where your spouse has intentionally depleted assets or incurred debts unfairly.

Q: What if I am worried about immediate financial stability?

A: If you are concerned about paying bills or supporting your children after separation, you may be able to seek temporary support.

Interim spousal or child support orders are intended to provide financial stability while your case proceeds. In situations where there is a risk that your spouse may hide or dispose of assets, the court can also make orders to preserve property, until the issues are resolved.

Q: What should I do if I think financial abuse is part of my situation?

A: If any of these issues sound familiar, start by gathering whatever financial information you can safely access. Then speak with a family lawyer about your options.

You may also want to seek support from counselling or community resources, since financial abuse often overlaps with emotional stress and uncertainty about the future.

The Takeaway

If you are going through a divorce with a spouse who is exerting financial control or hiding assets, you don’t need to handle it alone. With the right legal tools – including full disclosure, interim relief, and good advice – you can get the balance restored. This will help you move forward on a more even footing. Feel free to give our offices a Call or request a Free Consultation.