HE
MOVED ON.
She Inherited
the Debt
Join us in a vote against violence this election
Sign our petition calling on Government to reform laws that allow economic abuse to happen.
Our recommended changes
Clarify economic abuse as a distinct form of family violence, not a subset of psychological abuse, with a high-level, non-exhaustive list of economic abuse tactics. Include specific reference to abuse that occurs post-separation, and amend the definition of ‘family relationship’ within the Act to clarify that this may be a relationship with a spouse or partner OR a former spouse or partner.Â
Victims commonly report an ex-partner using joint accounts or joint loans/debt to cause further debt, hardship, and ruined credit. No laws or regulations fully outline how lenders can deal with these situations in ways that are both safe and fair for victims, and within the law. Responsibility for these debts should rest with the perpetrator, not the victim.
It can cost up to $10,000 for a victim-survivor to leave an abusive relationship. Flexible funding grants means victim-survivors have access to non-recoverable support to pay for essential costs such as furniture, a car, or a bond for a tenancy. Family Violence Flexible Support Packages are available nationally in Australia with grants of up to $5,000 and have been proven to be essential pathways to victim-survivor safety and wellbeing.
When victims are forced by partners to get a sole parent benefit, or when their partner withholds access to money and they get a sole parent benefit so they and their children can survive, it should not be seen as the same as fraud, but rather a way of providing support, stability and a path to safety and autonomy for the victim and her children.
Victims may find when they apply for child support that the IRD refuses their claim on the basis that their ex-partner has applied first and lied about having child(ren) in their care for more of the time than they really do. There is no option to have these decisions reviewed, and no option to provide evidence of family violence, coercion and outright lies in order to have decisions changes – other than by appealing to the Family Court which is expensive and time-consuming.
There needs to be clearer processes for ensuring the equitable division of property when economic abuse has occurred, and especially where the victim-survivor is likely to be left in financial difficulty following the separation.
Many victim-survivors of economic abuse are not eligible for legal aid because they are over the asset or earning limits, despite the fact that they may not have any access to these funds. The legal aid regime should ensure that access to justice is not blocked by making victim-survivors automatically eligible.
Credit reports can be damaged by economic abuse, leaving victim survivors unable to access traditional lending, utilities, or mortgages – through no fault of their own. Credit providers should have a positive obligation to proactively inform victims of their right to repair their credit history.
Because economic abuse doesn’t leave marks in the way physical violence does, it can be more invisible and harder to prove.
It is important to ensure that any changes made have the right effect for victim-survivors and don’t have any bad unintended consequences. Any evaluation should be done independently.Â
Download the short list of our priority reforms here
Looking for more detail? Download a list of our priority reforms with more information about each policy here
Economic abuse is often less recognised than other forms of family violence, and is not often talked about.
It is much more common than people might think