Economic abuse: how to recognise it, and what the law allows
Control over money is one of the hardest forms of control to recognise, because it can look like reasonable household management. The distinction is not in the size of the sums but in three questions: who decides, who knows, and what happens when you ask.
"Almost nobody comes to us and says they are a victim of economic abuse. They describe how things are run, and only when it is set out line by line does it become clear what is happening."
Adv. Ester Efrati · Head of the Family and Inheritance Department
What economic abuse is
Economic abuse is the exercise of one-sided control over the family's money and financial information, in a way that denies the other spouse free access to the resources or knowledge of their state. It does not necessarily involve shouting or threats, and it is often presented as order, thrift or responsibility.
The line between a legitimate division of roles and control does not lie in who manages the account. It lies in three other questions: whether both sides have access to the information, whether the major decisions are taken together, and what happens when the other side asks for something.
Why it is defined as abuse
Because the harm is not only financial. Control over money limits freedom of movement, the ability to obtain medical care, contact with family and friends, and the very ability to leave the relationship. These are basic rights, and the harm to them is what justifies the term.
Warning signs: a checklist
These are the questions we ask at a first meeting. The more affirmative answers, the greater the likelihood that this is control rather than a division of roles.
- You do not know the balance in the joint account, or you have no access to it.
- You are required to report every expense, however small, and to get approval in advance.
- You do not know the extent of the family's assets, debts, pension or investments.
- You are told the money is "his" or "hers", even where it accrued during the marriage.
- You were prevented from going out to work or to study.
- Your income is transferred in full to the other party's control.
- Financial documents disappear or are locked away.
- Financial restriction is used as a punishment after an argument.
- Loans, guarantees or credit cards were signed in your name without your understanding.
Note the last item. It features less in public discussion, but its consequences last for years after the separation.
The main patterns
The phenomenon appears in several patterns, and often in more than one at once.
Denial of access to resources
Restricting access to the account, to credit cards or to cash, sometimes to the point of preventing the purchase of food, medicine or medical treatment. This is the most direct pattern, and also the one that is relatively easy to document.
Denial of employment independence
Preventing the other from working or studying, either expressly or by practical obstruction, in order to maintain a built-in financial gap. The harm here is twofold: to the present, and to future earning capacity, which also carries weight in the property proceedings.
Exploitation of income
Requiring the whole of the income to be transferred to the other party's control, alongside pressure to earn more. The earning spouse ends up with no available money despite providing for the family.
Control of information and decisions
One-sided decisions on tax, investments, pensions and the children's education, without consultation and sometimes without knowledge. This is the hardest form to recognise from the inside, because it looks like efficiency.
Financial punishment
Using money as a disciplinary tool: blocking a card, stopping transfers, or cancelling a planned expense after an argument.
Who is affected
Most of the enquiries we receive on this subject come from women, which matches what is known about the phenomenon. But it is not limited to one gender, nor to one economic bracket.
Men are affected too, and sometimes find it harder to seek help because the description does not fit the prevailing perception. Our office works with men and women alike, and treats every enquiry with the same seriousness.
Not only financial hardship
One common misconception is that this characterises families in hardship. In practice it appears in the highest income brackets as well, and there it is sometimes more severe: the assets are larger, the holding structures are complex, and the non-controlling spouse has no idea what exists at all. In such cases the information gap is the central problem.
The legal framework
Israeli law has no separate offence called economic abuse, but several tools apply to these situations, and some of them are immediate.
- The Prevention of Family Violence Law. Allows an application to the family court for a protection order, including where financial control is accompanied by threatening behaviour. See restraining order.
- Interim support. An immediate financial provision can be sought, even before a main claim has been filed.
- Attachment and asset preservation orders. Where there is a concern that money is being moved or assets concealed.
- Disclosure orders. A central tool here in particular, because it closes the information gap that lies at the heart of the phenomenon.
- Resource balancing. At the property stage the financial conduct throughout the marriage is examined, including transfers out and one side's extraordinary spending.
An important point: you do not need to be in divorce proceedings in order to apply to the court for a protection order or urgent relief.
Documentation and evidence
Most cases in this area turn on the documentation. The difficulty is that the injured party is precisely the one without access to the documents, so it is worth starting early and carefully.
- Copies or downloads of account statements, credit reports and payslips for both parties.
- Balance confirmations for pension funds and savings schemes.
- Correspondence in which approval for an expense was required, or access was denied.
- A record of dates: when access was blocked, when a transfer stopped, when reporting was demanded.
- Documents for loans, guarantees and credit cards opened in your name.
If access to the documents has already been blocked, that is not the end of the road: a disclosure order, applications to the banks and managing institutions, and the appointment of a court expert make it possible to reconstruct the picture. It takes time, which is why it is worth starting early.
A safety note: if gathering documents could put you at risk, do not do it alone. Take advice first, and in an immediate situation call the police on 100 or the Ministry of Welfare national hotline on 118.
First steps
You do not need to decide on divorce in order to start putting things in order. These are the steps we recommend, in sequence.
- Initial legal advice. To map what exists, what can be sought immediately, and what needs preparation.
- Open a bank account in your name only. A simple step that restores basic independence.
- Redirect your income to the new account, if you have independent earnings.
- Document according to the list above, so far as it is safe to do so.
- Check what is registered in your name against the credit data, so you know what exists.
- Apply for urgent relief where food, medicine or treatment is being withheld, or where there is a concern that assets are being moved.
If the situation also involves threats or physical violence, the order of priorities changes and safety comes first. In an immediate situation call the police on 100; for support and information the Ministry of Welfare national hotline on 118 also refers callers to the family violence prevention and treatment centres.
What happens in the divorce process
Economic abuse does not stop with the separation. Sometimes it intensifies, because control of the information becomes a bargaining chip in the proceedings.
At the property stage the conduct throughout the marriage is examined. Extraordinary spending, transfers to relatives, unexplained withdrawals and the moving of assets are all taken into account in the resource balancing, and in suitable cases an unequal balancing can be sought.
Harm to earning capacity is examined as well. Where one party prevented the other from developing professionally over years, this may be weighed in the context of career assets and goodwill and in setting support.
The process begins, like any family proceeding, with a request for dispute resolution, unless urgent relief is needed that cannot wait.
In summary
Economic abuse is usually identified late, because each detail on its own looks like reasonable conduct. The picture becomes clear when the three indicators are looked at together: access to information, a share in decisions, and the freedom to ask.
On the legal side the tools exist and are available before divorce as well: urgent relief, interim support, attachment orders and disclosure orders. What usually determines the outcome is the documentation, and that is gathered early rather than in hindsight.
If any of this sounds familiar, contact us for a conversation. The meeting is confidential, and you can get a legal picture without committing to any step.
To speak with us: Jerusalem 02-5953322 · Tel Aviv 03-3030430 · WhatsApp 050-4411343
What people ask us about economic abuse
Is economic abuse a criminal offence in Israel?
Israeli law has no separate offence called economic abuse. That said, particular conduct within it may amount to offences in its own right, such as forgery, theft or obtaining by deception, as well as threats and abuse. In addition, the Prevention of Family Violence Law allows immediate civil relief even where there is no criminal proceeding.
Can a protection order be granted for economic abuse alone?
A protection order is granted on the grounds the law defines, mainly threatening or violent behaviour. Financial control on its own is not always sufficient, but it is examined in the overall context. Where it is accompanied by threats or harassing behaviour, the prospects of an order increase. Each case must be examined on its facts.
I am not in divorce proceedings. Can I still apply to the court?
Yes. You do not need to be in divorce proceedings to seek a protection order, interim support or an asset preservation order. Urgent relief is not conditional on filing a main claim or a request for dispute resolution.
My spouse refuses to give me access to the joint account. What can be done?
In a joint account you have rights as an owner, and you can approach the bank directly to clarify the permissions. If access has in fact been blocked, the court can be asked for a disclosure order requiring the bank to produce the data. This is one of the first steps we take in such files.
The money is registered in his name. Is it really his?
Not necessarily. Assets accrued during the marriage are generally included in the resource balancing, even where registered in one party’s name. Registration does not determine substantive ownership. Exceptions exist, for example for inheritance or gifts, and each asset must be examined separately.
What if my spouse has moved money out?
Attachment and asset preservation orders can be sought, as well as the appointment of an expert to trace the funds. At the property stage, moving assets out or extraordinary spending is taken into account, and in suitable cases an unequal balancing can be sought in favour of the injured party.
My spouse prevented me from working for years. Does that count?
Yes, on two levels. The harm to earning capacity is examined in setting support and in the balancing question, and in suitable cases also in the context of career assets and goodwill. The gap in earning capacity between the spouses is a relevant fact, not merely background.
Loans or guarantees were signed in my name without my understanding. What now?
This requires prompt attention, because the exposure continues after the separation as well. First, establish what exists against the credit data and with the lending institutions. Then arguments of absence of true consent, undue influence or fraud are examined, as well as how the debt is divided between the parties.
Are men affected by economic abuse too?
Yes. Most enquiries come from women, but the phenomenon is not limited by gender. We work with men and women alike. For men the difficulty is usually not legal but at the stage of making contact, because the description does not fit the prevailing perception.
Which documents are worth collecting?
Account statements, credit reports, payslips for both parties, balance confirmations for pensions and savings schemes, loan and guarantee documents, and correspondence showing that access was denied or that approval for spending was required. If collecting them could put you at risk, do not do it alone.
Is the meeting at your office confidential?
Yes. Lawyer-client privilege covers everything said at the meeting, including a first consultation that does not lead to representation.
I have no money to pay a lawyer. Is there a solution?
This is a familiar situation in economic abuse files, and it is part of the phenomenon itself. Several routes exist, including an application for costs against the other party, state legal aid where the conditions are met, and payment arrangements. It is worth raising the question in the first conversation.
All pages in the Family and Inheritance department
The separation itself
The divorce processLeaving home before divorceReconciliation or divorceRequest for dispute resolutionDissolution of marriageEconomic abuseRestraining orderThe children
Child supportChild support claimIncreasing or reducing supportSupport for a child born outside marriageCollecting support through National InsuranceSpreading a maintenance debtCustody and parenting timeShared parentingThe tender years presumptionChanging a custody arrangementRelocating abroad with the childrenParental alienationDealing with an alienating parentGuardian ad litemSurrogacyPaternity claimThe Youth (Care and Supervision) LawVisual parenting plan builderProperty and agreements
Prenuptial agreementSame sex prenuptial agreementSame-sex marriageNotarised prenuptial agreementDissolution of joint ownershipCareer assets and goodwillSelling the apartment on divorceCommon law partnersInheritance and estate planning
Wills and inheritanceInheritance between same-sex partnersEstate planningWills in estate planningIntergenerational transfer in estate planningTrustsDynasty trustSpecial needs trustProbate orderAgreements between heirsContesting a willNo-contest clause in a willLet us work out what is actually happening here
A short assessment call with a lawyer from the family law department, in which we will map the financial picture, identify what can be sought right now, and decide what is important to document. Nothing has to be decided at this stage.