Economic harm – restricting access to, sabotaging or exploiting another person’s financial resources and hindering their economic autonomy – is increasingly recognized as a form of domestic violence. And it can happen to anyone.

According to our ongoing research and previous studies, one in seven New Zealanders have suffered economic damage in their intimate relationships.

Like other forms of domestic violence, the economic and financial damage takes its toll the physical and mental health of the victimsand increases housing instability and financial insecurity.

To understand how widespread economic harm is in New Zealand, we surveyed 993 people aged 18 and over. We asked if they had experienced a list of 19 harmful financial behaviors in the past 12 months—and how often.

Prevalence of financial abuse

The vast majority of studies of broader intimate partner violence ask between three and five questions about money while measuring other types of violence. Instead, we focused only on capturing a wide range of financial behavior and economic damage.

Examples of what we looked at include withholding financial information, using household money for other non-essential purchases, and intentionally paying bills late to damage a partner’s credit rating.

Some behaviors were more prevalent than others. Across all 19 behaviors, an average of one in seven respondents (15.1%) reported experiencing a particular behavior at least half of the time in their relationship in the past 12 months. One in seven said they experienced at least ten of these behaviors.

Although caution is needed when comparing different studies, our findings are similar to research from New Zealand and elsewhere, including United Kingdom.

Among the most prevalent behaviors experienced was the action of “withholding or hiding financial information or money from you” (17.6%). This was followed by “intentionally paying bills late or not paying bills that were in your name or in both names” (17%).

About one in five respondents reported that their partner uses their “money or household money for gambling or excessive alcohol/drug use”. A similar number said their partner used “online banking or banking applications (banking technology) to “pressure, coerce or threaten”.

Use of online platforms such as banking applications and transactions as a tool to cause damage ran a growing number of New Zealand banks and Australia to explicitly name the economic damage as inappropriate customer behavior in their terms and conditions.

“Historical” prevalence of economic harm (behaviors experienced in a previous relationship more than 12 months ago) was much higher than that experienced by a current or former partner in the past 12 months.

We interpret this as evidence that money is a primary cause of relationship breakdown. This finding suggests that individuals may be better able to identify their experience as abuse or disclose harmful behaviors after the relationship has ended.

Invisible to outsiders

Economic harm is rarely apparent to outsiders, and household income or individual earning power does not always indicate access to financial resources. Unsafe and harmful behaviors lurk behind cultural taboos around money.

Also, victims may not immediately realize they are injured. They are unlikely to have the financial independence or agency to make decisions that an outsider thinks they can or should.

Importantly, one in four survey respondents reported knowing someone they believed to be financially disadvantaged. Given our general lack of understanding and awareness of economic harm, this finding offers hope.

Continued advocacy, supported by research and the many organizations and corporations working to improve survivors’ knowledge and toolkits, will keep financial security on the agenda.

In addition to the often devastating personal experiences of financial harm, the cost to the wider economy is high. While the numbers are unclear for New Zealand, economic impact on Australia in 2020 it was estimated at $5.2 billion in lost productivity and mental health costs.

Changing the law

In Asia-Pacific, that of the World Bank International Finance Corporation launched “Empower Finance” program to help financial institutions identify and address financial harm in the region.

Domestic violence agencies, advocates and funding organizations have called for New Zealand’s Family Violence Act to name economic harm as a independent type of violencerather than a subcategory of psychological abuse.

Such a move would bring New Zealand into line with United Kingdom and Australia. In Queensland and New South Walesnon-physical forms of abuse, such as economic harm, are criminalized by the new coercive control laws.

While New Zealand awaits legislative change, everyone can work to understand the behaviors that cause economic harm. This can include breaking down taboos around talking about money, especially in relations.

If you think you or someone you care about is experiencing economic harm, you can find more information at The Good Shepherd in NZ and Center for Women’s Economic Security in Australia.