Protecting super from financial abuse
Content warning: Domestic violence and suicide.
If you're impacted by these issues support is available now.
Verve Super campaigns for better protection from financial abuse for women and their super. Loopholes in current legislation can rob women of their retirement savings – and even see them awarded to their abuser. We’re fighting to fix that.
Find out what financial abuse is, why it happens, what Verve Super is doing about it and how to protect yourself and your savings.
Financial abuse can take many forms but generally involves one person (typically a partner or relative) controlling or exploiting someone else’s financial resources to gain power over them or their money.
The stats around financial abuse are shocking. In Australia, almost one in five women have reported being financially abused at some point, and it’s present in almost all domestic abuse cases. But many more may not even realise it’s happening – until it’s too late.
While researching the problem before we took our findings to Parliament, we uncovered some shocking stories and were disappointed to how widespread the problem was, and how little the finance industry was doing about it.
Examples of financial abuse include pushing someone to take out credit, controlling or limiting their spending or account access, or preventing them from working. But it can also be more subtle, such as hiding assets during separation settlements, refusing to contribute to household expenses, or withholding child support.
Many people don’t realise these are forms of financial abuse, and it may be friends or family who spot when something’s not right.
Where financial abuse impacts superannuation, it’s because current regulations contain loopholes that sometimes allow perpetrators to clean out their victims’ super.
Financial abuse can be hard to recognise. Often it can just be a feeling that something is ‘off’ around you and/or your partner’s finances.
Domestic violence is almost aways accompanied by financial abuse.
Legislation and industry regulations need to change to better protect super from financial abuse. Verve Super is leading the charge to make that happen.
Verve Super co-founder Christina Hobbs stood up in Parliament to speak out about financial abuse, superannuation and how to fix the system.
Watch the video below
We identified five areas that needed urgent reform, and made recommendations to Parliament on how to fix them:
1. SMSFs and lack of protection
Joint Self-Managed Super Funds (SMSFs) are not protected by regulations, and perpetrators are able to withdraw their partner’s funds without consent.
2. Death benefits going to perpetrators
Funds are automatically released to perpetrators after their victim’s death. Even in abuse-driven suicide cases, regulations divert victims’ funds to the abuser, unless the victim had completed a non-lapsing binding nomination form.
3. No access to super after separation
Not being able to access super to start over following separation has caused lifelong hardship for survivors who escape domestic abuse. They can be left with no means of housing themselves because they cannot access their super.
4. Super hidden during settlements
Super is easy to hide during a separation settlement, without using a costly court process. We’re asking the government to make it easier to seek a fair settlement.
5. Lack of awareness of financial abuse
There’s not enough awareness around financial abuse. The government, financial institutions and society needs to talk about it more and know what to look for.
Financial abuse and control in relationships is still an area we’re not talking about enough. Raising awareness and removing stigma will help to keep it in the national conversation. So, as a vocal community of women and gender-diverse people, let’s keep talking about this.
Did you know that financial stress is a leading cause of relationship breakdown? Managing conflict around money requires open communication, mutual respect and a shared understanding of financial goals. Verve Super has a few strategies and resources to help you stay calm, focused and in control if you and your partner have a disagreement about money.
If you or someone you know is experiencing financial abuse, free and confidential help is available.
If you need legal help or advice, there is free legal advice available.
If you’re in crisis or struggling to make ends meet, find out how to get urgent help with money.
For free and confidential support, contact:
Help for families affected by relationship or separation issues
Family Relationship Advice Line
1800 050 32
8am-8pm, Monday to Friday
10am-4pm, Saturday
Family violence and financial abuse support; sexual assault counselling
1800 737 732, 24 hours
Crisis Support
13 11 14, 24 hrs
Help if you’re struggling with debt
1800 007 007
9.30am to 4.30pm, Monday to Friday
Family counselling, mediation and dispute resolution services
1300 364 277
