Jacqueline Newman is a matrimonial attorney in New York.
We expect she’s seen plenty of things in marriages that make her lose sleep, and her topic for today is financial abuse. This occurs when one spouse uses money to control the behavior of the other – it can occur to either party, but women are most commonly the victims.
As with any form of abuse, the warning signs are there for those who recognize them and advisors need to train themselves to respond when things don’t look right.
Financial abuse takes five basic forms. First, a spouse can be kept ignorant of the true state of the family’s financial situation in terms of assets held or their true worth. In other cases, outright stealing of funds is involved. In the third type of abuse, a spouse is controlled by being assigned a regular allowance and no more – a strong-arm tactic aimed at limiting their personal freedom.
In the fourth instance, tyrannical spouses may require a penny-by-penny report of how and where any money has been spent. Reasonable accounting is part of any sensible couple’s financial life, but in this case the object is misery and control. Finally, a spouse may be prevented from seeking work that might provide an independent income and experience to support a career in the event of divorce. Here, the object is clear: you aren’t going anywhere unless I say so.
Newman specializes in the divorce proceedings of wealthy couples. She’s set herself a mission: “to help people get out of unhealthy relationships and become open to fresh new ones.” Click through to the linked article to hear her views of this matter of pressing importance.
For more information, please read:
Financial Abuse in Marriage: What Advisors Can Do | ThinkAdvisor