Olivia Piercy and Anita Mehta discuss economic abuse in family law proceedings in Solicitors Journal

Olivia and Anita’s (4PB) article was published in Solicitors Journal, 6 May 2024, and can be found here.

Olivia Piercy, Partner in our Family & Relationships department and Anita Mehta (4PB) discuss the growing recognition of economic abuse in family law proceedings.

They highlight how behaviours such as withholding financial resources or mismanaging family income can severely impact the economically dependent party, particularly in the context of separation. Although the Domestic Abuse Act 2021 formally defines economic abuse, its practical application in financial remedy proceedings remains limited and inconsistent.

Olivia and Anita explain that while courts have developed tools to address financial misconduct in divorce such as “add-backs” for reckless spending or penalties for litigation misconduct these mechanisms are not available to cohabiting couples. This is concerning given the rise in non-married families, who currently lack legal protections despite facing similar financial vulnerabilities. The authors question whether the law is keeping pace with modern family structures and the realities of economic control.

They also explore the challenge of recognising how economic abuse affects a victim’s earning capacity. While legal precedent allows for compensation in cases of career sacrifice, it is much harder to quantify the disadvantage suffered by victims of coercive control who may not have had high-earning careers. Olivia and Anita argue that it is time to re-examine the legal framework to ensure it reflects a deeper understanding of domestic abuse and provides fairer outcomes for survivors.

Read the full article on the Solicitors Journal website [subscription required].