Steps for Recovering from Financial Abuse

One in three. That’s how many women will experience economic abuse in their lifetime, according to the latest State of Economic Abuse report from the Canadian Center for Women’s Empowerment.

The report defines economic abuse as behaviours that control or restrict a victim’s economic resources, including finances.

Seventy-eight percent of economic abuse survivors have also experienced physical abuse, the report found.

For many Canadian women, losing their economic autonomy limits their ability to escape a bad situation.

Some women rationalize giving up financial control to their partner, believing they lack money management skills or are too busy with caregiving.

“Every time a woman says that, they give away their power,” says Brenda St. Louis, an Accredited Financial Counselor and financial therapist based in Victoria, British Columbia. “They give away their choice and their possibility to create a life that’s built on their own credit score, their own financial literacy and their own empowerment.”

Are you being financially controlled?

At first, some of the signs of economic abuse may be subtle but the cumulative effect can wreak havoc on your financial and mental health.

An abuser might limit your access to household money or give you an “allowance,” for instance. They might commit financial infidelity by lying about or hiding purchases and financial decisions, St. Louis says.

Additionally, an abusive partner might try to sabotage your career or prevent you from working to further isolate and control you.

How to recover from economic abuse

Leaving a financially controlling situation is extremely difficult, and it can take time to find stability and rebuild your life. Having a plan can prevent the process from feeling too overwhelming.

Here are some immediate steps to take after leaving a financially abusive relationship.

Get to safety. Find a safe place where you can go to plan your next steps — a trusted friend, family member or even a women’s shelter. Be sure to take important documents with you, such as your birth and marriage records, social insurance card, government-issued ID and passport. You’ll need them to access financial services and set up new accounts.
Secure your credentials. Change the password, PIN and security question on any financial accounts where you are the sole or primary account holder. Choose passwords that your former partner won’t be able to guess, and enable two-factor authentication where possible for maximum security, says St. Louis.
Assess your credit. Get your credit report to identify any debts or accounts opened in your name, and look for unauthorized activity.
Open new bank accounts. If you don’t already have your own bank account, open one solely in your name (and preferably at a different institution from your ex-partner). Having your own account enables you to deposit paycheques, pay essential bills and build up savings.
Create a survival budget. Focus on meeting your basic needs — housing, food, transportation and health care. “Create what I call a money ecosystem that is separate from the relationship where you can start to build credit with your name on it,” advises St. Louis.
Build your credit history. If your partner damaged your credit or you don’t have a credit score, you’ll need to establish a credit history in order to qualify for credit accounts and loans in your name. Start small with a prepaid debit card or a secured credit card. Make all of your payments on time and in full to build a positive credit history.
Seek professional help. Financial counseling services from non-profit organizations like Credit Canada can provide added support as you map out your new financial future. If you were married, consult with legal aid in your province to learn what joint debt you might be on the hook for, St. Louis says.

🤓 Nerdy Tip: If you notice unauthorized activity on your credit report, notify the credit bureaus — Equifax and TransUnion — and any lenders immediately. If you live in Quebec, you have the option to freeze your credit, which will prevent any new accounts from being opened in your name (even by you) until you choose to unfreeze it. If you live elsewhere, think about signing up for a credit monitoring service to help you keep tabs.

Where to get help on the path to recovery

If you’ve left or are planning to leave an economically-abusive relationship, know that there are systems in place to help you get re-established.

The Canadian Center for Women’s Empowerment has a list of resources for people experiencing abuse, including support networks in each province and territory.

The STEAR app (“support tool for economic abuse recovery”) can connect you to helpful resources, and is designed to be used confidentially on your mobile device.

You can also check out the federal government’s online resource page for more services.

Remember that the path to financial freedom will require patience and small steps. Success isn’t measured by the dollars in your bank account but by having full autonomy over your money decisions — and the direction of your financial future.

DIVE EVEN DEEPER

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