Haven’t got time to read this story? Listen to it in audio format.

When people think of domestic and family violence, physical or emotional abuse usually comes to mind. But there’s a quieter, often invisible form of abuse that’s hiding in plain sight – financial abuse.

“Economic abuse, also known as financial abuse, is a form of domestic and family violence that’s part of a broader pattern of control, exploitation or sabotage of money,” says associate professor Ann Kayis-Kumar, academic at UNSW Business School and founding director of the UNSW Tax and Business Advisory Clinic. 

In New Zealand, one in seven women who have been in a relationship have experienced this form of abuse. In Australia, it affects an estimated 2.4 million people, features in the majority of domestic violence cases and costs victim-survivors – and the wider economy – nearly A$11 billion annually.

Economic abuse is underestimated, underreported and poorly understood.

The hidden signs of financial abuse

One of the most dangerous aspects of financial abuse is how invisible it can be, even to those living through it.

“It’s one of the least recognised forms of violence,” says Brittany Goodwin, senior social policy and advocacy advisor at Good Shepherd NZ. “Most victim-survivors don’t even realise it exists.”

“Many are told by their abuser, ‘You’re just bad with money,’ or ‘You’re stupid, so I’ll handle it,’” Goodwin explains. “The control gets justified as being in their best interest.”

Mira Taitz, DVFREE lead and senior trainer at Shine (Safer Homes in NZ Everyday), says economic abuse is often just one part of a broader pattern of coercive control that slowly strips away a person’s freedom, autonomy and safety.

“Abusers might hide resources or get their partner to be liable for debt without them knowing,” says Taitz. 

Someone might earn a good income but have no say in how it’s spent, they may be forced to leave work, or be put on a strict allowance and made to show receipts by a controlling partner.

Taitz notes that people experiencing domestic violence are constantly resisting abuse, but financial abuse can be hard to recognise and even harder to escape. 

“They may live in fear that if they don’t follow the rules, something bad will happen, like physical violence, intimate photos being shared, losing access to money or even being kicked out of the country.”

Accountants as first responders

Kayis-Kumar has been a key advocate for exposing the link between accounting and financial abuse. 

“Without awareness of economic abuse, an accountant will follow a client’s instructions in good faith but unwittingly become caught up in the perpetrator’s abuse,” she says. Quoting Professor Kay Cook, she adds: “Accountants can obscure financially abusive behaviours, creating a significant power imbalance in victim-survivors’ quest for financial safety.

“I’m grateful that the accounting profession has been proactive in their awareness-raising efforts,” says Kayis-Kumar. 

They can play a meaningful role in the prevention of economic abuse, but first they need to understand what it can look like in practice. 

Type of financial abuse	How it works
Unclear financial information	Complex business setups or vague financial details that make it hard to understand or access money
Restricted access to finances	Being blocked from viewing or using bank accounts, income or tax records
Secretive about money	Hiding financial details, income, or property
Taking control of financial choices	Making money-related decisions without input from a partner
Transferring debt	Placing loans or financial obligations in a partner's name

Controlling behaviour: financial abuse is about control and manipulation, says Goodwin. 

“If you’ve got a couple who are coming to you as part of a business, with joint directors but one person is doing all the talking, making all the decisions, the other person is not being involved in the conversation – then that’s a red flag,” she says. “You have to ask, does this person actually want to be here, or are they being controlled?”

Goodwin mentions cases where one partner repeatedly submits documents signed by the other director – often the wife – whom the accountant has never met. “There may be a signature but no real consent,” she says.

Tax debts: Kayis-Kumar has witnessed alarming financial abuse she calls “sexually transmitted tax debts”.

“In the tax setting, it’s unfortunately quite easy to transfer tax debts and that can be done in a way that is maliciously, calculatedly extracting revenge on the victim-survivor by financially ruining them,” she explains.

More than 80% of her clinic’s female clients self-reported experiencing financial abuse. Worryingly, all director penalty notice-affected clients have been female victim-survivors with tax debts – averaging A$134,000 – often from companies they never knew they were listed as directors of.

Dodging child support: child support is a way that people are wielding abuse even after a relationship ends, says Goodwin. 

“It can involve hiding income, delaying or manipulating tax returns to avoid liability, or making income appear lower to reduce child support payments.

“This kind of manipulation can show up in an accountant’s day-to-day work,” she continues. “It’s fraudulent behaviour but it’s also a form of economic abuse.”

Goodwin notes that in New Zealand, unpaid child support debt is more than a billion dollars, mainly owed by men.

“I’m grateful that the accounting profession has been proactive in their awareness-raising efforts.”

How accountants can respond with care

While they’re not expected to act as social workers, finance professionals can still take safe, practical steps to support clients, without stepping beyond their scope.

“It’s about balancing professional Kayis-Kumar. “You don’t want to overlook power imbalances or signs of coercion.”

1. Discreet support matters

Kayis-Kumar recommends raising awareness subtly, such as using posters or flyers in private areas like bathrooms – an approach common in the medical field.

She also suggests “a very delicate conversation that doesn’t presuppose what the potential victim-survivor should do” but simply flags possible signs of abuse and offers specialist support. “Then leave it in their hands to take the next step.”

Goodwin encourages creating space for private, compassionate conversations. “For example, make a separate follow-up phone call: ‘I’ve got the paperwork here, I see that you’ve signed this. Can you talk to me about how you understand what you’ve signed?’”

2. Get both parties in the room

“If you think that there might be financial abuse at play, rather than trying to solve the abuse, best practice is to ensure that both parties are in the room when decisions are being made,” advises Kayis-Kumar. 

“We see clients who have been directors of businesses they did not know existed,” says Goodwin. “So, just being aware of these patterns and making sure that you are having contact with both parties who are running the business is really important, because it means that you are presenting an opportunity for the client’s spouse to have knowledge and clarity of the financial position and be involved in decision making.”

3. Set up clear policies

Fear of saying the wrong thing or overstepping can lead to inaction but clear internal policies can make all the difference.

“We know economic abuse happens a lot,” says Goodwin. “So, it’s important to have clear lines around when you step in, when you don’t and what your legal responsibilities are – where you refer out and where you can actually do something.” 

Taitz agrees, “We run customer-response training for teams in financial institutions, so they know how to respond with care and sensitivity when they spot signs of abuse.”

A chance for systemic change

In Australia, broader systemic reform may be on the horizon. Kayis-Kumar highlights the federal government’s election promise in Building Australia’s Future: Labor’s Commitment to Women to stop perpetrators from misusing tax and corporate systems to coerce partners into debt – and to hold them accountable.

She describes this as “a once-in-a-generation alignment” and a “genuine opportunity to stop economic abuse in its tracks, and to help survivors regain financial control and dignity”.

Her key recommendation is the introduction of innocent spouse relief, a tax reform that would shift liability away from victims when debts were incurred under coercion. 

“The US has had these protections since 1971 and financial abuse-specific tax relief since 1998,” says Kayis-Kumar.

In New Zealand, the legislative landscape remains limited. 

“There hasn’t been much attention at a policy level beyond the Family Violence Act, where economic abuse is treated as a form of psychological violence,” says Goodwin, adding that financial services can and should play a much bigger role in both prevention and response.

There are some early signs of progress. Taitz notes that New Zealand’s Financial Markets Authority now requires institutions to actively support vulnerable customers. 

“Banks and insurers are forming dedicated care teams trained to recognise domestic and economic abuse and respond with care and sensitivity,” she says.

---

Get in touch

Advisors should ensure their clients know of family and domestic violence support services.

Australia

Phone: 1800 737 732 or 1800respect.org.au and search ‘Financial Abuse Support Toolkit’ 

13YARN on 13 92 76

UNSW Tax & Business Advisory Clinic – Phone: 02 9385 8041 (9am to 5pm, Monday, Tuesday and Thursday) or Email: [email protected]

New Zealand

Good Shepherd NZ – 0800 466 370 or 09 302 1643

Shine – 0508 744 633

---