Experiencing Economic Abuse: Raising Awareness

This week saw the UK acknowledge Economic Abuse Awareness Day amidst latest research that shows that, in the last 12 months nearly one million UK women were prevented from leaving a dangerous partner because of economic abuse. Economic abuse is encompassed as a form of domestic abuse, involving someone’s finances being controlled by another person. Research shows that economic abuse has an overwhelmingly disproportionate impact on women: in a recent survey, charity Surviving Economic Abuse has found that nearly one in seven women say they have recently experienced a form of economic abuse at the hands of a partner. This can mean controlling or withholding access to cash, preventing victims of economic abuse from taking action to leave the relationship, provide for their children, or access basic necessities such as a home or provisions for food or hygiene products.

Resolution, an organisation comprising of family lawyers and related professionals committed to ensuring non-confrontational and constructive outcomes for separating families, has recently published a report on the prevalence of domestic abuse in the context of financial remedy proceedings during divorce. During such proceedings, economic abuse can materialise as the financially stronger party hiding assets during the financial disclosure process, or fostering a culture of delay around proceedings intended to hike the legal costs of the financially weaker party. A common example also includes withholding interim funds to prevent their spouse from meeting day-to-day costs during the ongoing process between initial separation to final outcome. The report highlights the need for a review of interim financial remedies available to ensure that vulnerable litigants are protected during proceedings, as well as following a final result.

Resolution’s report has found that 80% of family justice professionals believe that domestic abuse, and specifically economic abuse, is not at present sufficiently taken into account during financial remedy proceedings. This percentage is even higher in Schedule 1 cases (covering financial provisions for children), and in cases where the parties have cohabited, though were never married.

Notably, Resolution’s report highlights the potential shortcomings of section 25(2)(g) of the Matrimonial Causes Act 1973. Here, the provisions for raising ‘conduct’ (e.g. allegations of domestic abuse) within financial remedy proceedings are set out. Recent case law states that instances of conduct must be (i) exceptional and (ii) have a negative (though not necessarily easily measurable) financial impact caused by the conduct in question. There is also a procedural requirement meaning that any conduct argument raised must be fully particularised at the outset of financial remedy proceedings (i.e. at the point of exchange of Forms E, which is the first step in providing financial disclosure to the other party). If this is not done, the court can make an order directing that conduct cannot be raised at any point further in the proceedings, unless new evidence comes to light.

This is considered a very high bar – naturally, it can be difficult to determine what type of domestic and particularly economic abuse is sufficiently serious to be considered ‘exceptional’. This can also fail to acknowledge ‘post separation domestic abuse’, where economic abuse comes to a head during proceedings, once the point to raise it at the beginning has already passed. Whilst the report does not seek to provide a final recommendation about how to resolve this issue, it notes that Resolution will continue to consider it.

The key recommendations in the report signal the need for a ‘cultural shift’ from all family justice professionals to better meet the needs of those who are victim to domestic abuse whilst facing financial remedy proceedings. It proposes an explanatory Practice Direction be included in the Family Procedure Rules, to better clarify the approach to financial remedy proceedings that should be taken in instances of domestic abuse.

Choosing the right family lawyer is always important but when dealing with economic abuse it is even more crucial. As experts in family law, we’re dedicated to delivering the best possible advice. Ribet Myles are a team of specialist family lawyers and divorce solicitors headquartered in London, acting with compassion and integrity, with an empathetic and supportive approach working with clients on all aspects of divorce, separation and family law. To find out more about the team and the work we do get in touch here.