Physical Abuse vs. Fiscal Abuse

               

Most of the news about domestic violence focuses on physical abuse. But, not too many think of the hidden abuses that survivors and families face.

In some cases, fiscal – or financial – abuse can be just as debilitating for a domestic violence victim as physical abuse. The question, “why doesn’t she just leave” is often asked, and one of the answers to that question is finances.

·         Where will the survivor turn with no money?

·         If kids are involved, how will she provide for them if she does not have a job?

·         How can she apply for any mortgage or lease with damaged credit due to the abuser’s economic abuse?

These are questions that come up in 98 percent of abusive relationships. Economic abuse can take on different forms. It could be the abuser’s complete control over the finances, forcing the victim to ask for even a little money or as drastic as intentionally destroying the victim’s credit through credit charges or false claims.

In an article in Forbes Magazine earlier this year, a survivor describes her domestic violence relationship. While she was put on bedrest during her pregnancy, she quickly realized how much her husband was controlling the family finances. Spending more time at home, she started seeing credit card bills and eviction notices in the mail.

When she was able to go back to work, her husband went as far as calling her employer to find out exactly how much she was making. Things got progressively worse and escalated physically. In the end, she left him, but realized she had no economic knowledge. She applied for a job at a bank “on a whim” she says. Now, she is divorced, doing better financially and has a decent savings account.

Stories like this are not unlike those we hear from the survivors and families we help.

Just recently one survivor told Hope House supporters of a time when her husband became physically abusive after finding her secret stash of money she was slowly accumulating in a safe place so she could afford to leave with her children.

The stress of worrying about finances greatly restricts the victim from being able to escape. It destroys self-esteem because the survivor cannot provide for herself or children. And, it could even ruin the survivor’s financial future if her credit has been seriously damaged.

The economic impact of domestic violence is staggering. According to several studies, domestic violence costs the U.S., $8 billion annually in medical costs ($5.8 billion) and lost productivity ($2.5 billion).

The National Network to End Domestic Violence includes a list of examples of financial abuse on its website. Some include:

-          Not allowing the victim access to bank accounts

-          Withholding funds for the victim or children to obtain basic needs such as food and medicine

-          Stealing the victim’s identity, property or inheritance

-          Withholding money or giving “an allowance”

-          Filing false insurance claims

To view the full list, click here.

Tips to consider if you or someone you know is in a financially-abusive relationship:

-          Start acquiring all financial information for you and your family, including: birth certificates, bank statements, and other personal documents. Keep them with a friend or somewhere safe outside of the home

-          Get a copy of your credit report. You are able to get one credit report free of charge annually. Check with the three main credit entities (Equifax, Experian, Trans Union) for details

-          Find ways to earn a little cash on the side and have someone keep it safe for you

-          Work on your budget if you were to leave and plan accordingly

And lastly, if you have more questions, contact our hotline at 816-461-HOPE (4673).

If you would like to support survivors and families of domestic and financial abuse, check out the Purple Purse Challenge fundraising page at www.crowdrise.com/hopehouse3. 

Domestic Violence and Financial Freedom

Imagine you’ve just run from your home in fear, with your children at your side. You’ve moved into a shelter, so you’re living with a bunch of strangers. You feel safe for the first time in a long time, but then the reality sets in: “What am I going to do for money?”

Your abusive partner didn’t allow you to have a job, or handle the finances. At first, you thought that was a dream come true. Now you realize it was all about controlling and isolating you. You haven’t held a job in years, and have never paid bills.

This is a typical scenario for Hope House clients. That’s why, with the support of The Women’s Foundation, we offer a Self Sufficiency Program. The advocates that lead the program work with our clients individually and in groups to help them learn about how to handle their money, and increase their employability. 

In a 2009 study examining issues of concern to women in the Kansas City area, women identified “employment and finance” as the second most important issue facing them today. Within that category, participants identified the importance of job training, access to long-term employment, financial education, and accessible transportation.

Survivors of domestic violence face these same struggles in addition to living in constant fear. The financial cost of leaving an abusive partner can be overwhelming. Once a woman leaves her partner, she becomes solely responsible for providing for her family. 

In Hope House’s most recently completed fiscal year, 10/1/10 – 9/30/11, the average annual income for families sheltered at Hope House was only $4,447 without financial support from the abuser; 93% were below poverty; 54% reported no income at all.

With little or no income, it is impossible for many survivors to immediately be self-sufficient and provide for the basic needs of food, shelter, and adequate healthcare coverage for themselves and their children.

Through the Self-Sufficiency Program, Hope House offers survivors of domestic violence an opportunity to gain both knowledge and skills in financial literacy and job readiness. With these new skills available to her, a mom can now support her kids.

She doesn’t have to wonder if she should return to her abuser because she had no other way to pay the bills. She’s empowered to start a new life, free from abuse.

Does the Economy Cause Domestic Violence?

I have been asked many times in the past months how the economy has affected domestic violence. Does the economy cause domestic violence? What is economic abuse? I thought I would take this opportunity to provide more information about those issues.

Domestic violence is a pattern of controlling behaviors used by one partner to maintain power and control over his partner. Economic abuse is using economics/money to maintain that power and control.

Examples of how this is done include:

• Controlling finances
• withholding money or credit cards
• ruining credit ratings
• requiring an accounting of money that is spent and punishment if not spent on things the abuser approves
• preventing the partner from working or causing them to lose their job
• withholding necessities such as food, clothing and medication
• stealing from their partner or using their personal identification fraudulently 

Does the bad economy cause domestic violence? The answer is “no”. However, it doesn’t help in situations where there is already abuse present. Economic stresses often lead to more frequent and more violent abuse when domestic violence is already present. It also creates more barriers to a woman’s ability to flee the situation.

• Domestic violence is three times as likely to occur when couples are experiencing high levels of financial strain as when they are experiencing low levels of financial strain.
• Women whose male partners experience two or more periods of unemployment over a 5-year study were almost three times as likely to be victims of intimate violence as were women whose partners were in stable jobs.
• Three out of four domestic violence shelters report an increase in women seeking assistance from abuse since September 2008 (NNEDV, Impact of the economy on domestic violence)

Hope House is one of the shelters that have seen an increase in the numbers of people seeking services. We are seeing the impact of the economy in the length of time people are staying in shelter. People are staying longer, because it’s more difficult to secure employment, get bills paid and access services from other agencies that are at capacity due to their own diminished resources.

We are seeing more people in our outreach programs and have a waiting list that is longer than any time in our history. We turned away more than we served in shelter last fiscal year.

The struggle for Hope House is to find the balance between the increase in the demand for services coupled with decreases in our funding. We are doing more with less but will continue to work to provide the absolute best service for our clients, while we work to increase our resources.