May marks Family and Domestic Violence Prevention Month – a time to shed light not only on the more visible forms of abuse, but also on those that are harder to spot but just as devastating. One of the most pervasive, yet often hidden, forms is financial abuse.
Alarmingly, 90% of domestic violence cases in Australia involve financial abuse. This abuse doesn’t always end when the relationship does.
What is financial abuse?
Financial abuse is any behaviour that controls a person’s ability to acquire, use, and maintain economic resources. It can include tactics like withholding access to bank accounts, preventing someone from working, or crucially during separation – hiding assets or superannuation to disadvantage the other party.
In Australia, knowingly not disclosing financial information such as superannuation balances during separation proceedings is not just unethical – it’s a form of financial abuse
During separation, it often escalates to:
- Hiding assets or income, including superannuation.
- Deliberately delaying financial settlements.
- Manipulating child support payments to exert control.
Such tactics can leave victims, predominantly women, in precarious financial situations long after the relationship has ended.
The prevalence of financial abuse in Australia
Recent Australian Bureau of Statistics data revealed that:
- 16.3% of Australian women have experienced economic abuse by a current or former partner, showing little improvement from 15.7% in 2012.
- 80% of women report that their ex-partner replaced physical abuse with financial abuse via child support as a means of control post-separation.
- The economic cost of financial abuse in Australia was estimated at $5.7 billion annually in 2020.
The super gap: A crisis for separated women
Australian women retire, on average, with 28% less superannuation than men. For separated and divorced women, that gap widens to 113%.
Separation often worsens financial insecurity, particularly for women who were primary caregivers – making superannuation splitting a critical, but often overlooked, part of a fair settlement. In fact, women over the age of 55 are the fastest growing group of homeless Australians, eight times more likely to experience homelessness than their male counterparts.
Yet, many women don’t bring their partner’s superannuation into the asset pool during separation either because they don’t know they can, or because financial information has been withheld.
Why super matters in separation
Superannuation is treated as property under the Family Law Act 1975, meaning it must be disclosed and can be divided during separation. Despite this, misinformation and non-disclosure are common, leaving one party, usually women, significantly disadvantaged for life.
In our latest podcast, The Separation Guide CEO Angela Harbinson speaks with Tap the Gap CEO Lucy Kough about the importance of superannuation in separation and how we can help close the 113% super gap for separated and divorced women.
Important facts separating couples should know:
- Super is 100% your money and it’s critical to ensure all super balances are disclosed during separation.
- Splitting super is often not 50/50. Courts take into account caregiving responsibilities and future needs, not just existing balances.
- Without legal support, it’s easy to miss entitlements and risk long-term financial hardship.
Breaking the cycle: How to protect yourself
- Get legal advice early. Only a lawyer or legally qualified mediator can advise you on what’s fair and help make super splitting legally binding.
- Demand full financial disclosure. Hidden assets and superannuation must be identified for a fair division.
- Understand your rights. Tools like Tap the Gap help empower women to check their super balance, understand their entitlements, and act to close their gap.
- Prioritise super in settlements. It’s tempting to focus only on immediate needs like housing – but you can’t eat your house later. Super provides essential income in retirement.
Ending financial abuse starts with awareness
Financial abuse thrives in silence and confusion. By educating ourselves and each other, we can dismantle the structures that allow it to continue – during relationships and long after they end.
Financial abuse doesn’t always cease with separation. It can persist through:
- Coerced debts: Victims may be forced to take on debts they didn’t incur.
- Manipulation of child support: Abusers may withhold payments or use them as leverage.
- Legal harassment: Prolonged legal battles can drain victims financially and emotionally.
These tactics can lead to homelessness, bankruptcy, and a cycle of poverty that’s difficult to escape.
This Family and Domestic Violence Awareness Month, let’s bring financial abuse out of the shadows and ensure every Australian has the knowledge and support to protect their future.
If you suspect you may be experiencing financial abuse, book a support call now.
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The Separation Guide aims to reduce the cost, conflict and confusion of separation and divorce. To learn more about how one of our Network Members could support your separation, take our free three-minute Q&A.
Disclaimer
The information in our resources is general only. Consider getting in touch with a professional advisor if you need legal, financial or wellbeing support.
