Olivia Piercy discusses financial abuse in HNW divorces in the FTAdviser

Olivia’s article was published in the FT Adviser, 1 November 2022, and can be seen here.

Olivia Piercy, Partner in our Family & Relationships department, reflects on the growing recognition of financial abuse in high net worth (HNW) divorces, a topic brought to the forefront at this year’s International Family Law conference in Jersey.

The Domestic Abuse Act 2021 has formally acknowledged economic abuse as a form of domestic abuse, encompassing behaviours such as restricting access to money, sabotaging employment opportunities, and controlling financial information.

In many high net worth (HNW) marriages, these dynamics are masked by traditional gender roles, but upon separation, the coercive control becomes starkly evident. Victims often find themselves financially stranded, unaware of their rights, and facing a legal system that struggles to address the complexities of financial abuse.

Olivia highlights that post-separation, financial remedy proceedings can become a new arena for abuse, with perpetrators using tactics like withholding maintenance, hiding assets, and obstructing financial disclosure to maintain control. The Family Court’s emphasis on negotiated settlements and voluntary disclosure often fails victims, who are pressured to engage in processes that are easily manipulated by abusers.

With court delays and limited recognition of abusive conduct in financial claims, victims must act swiftly and decisively. Early legal intervention, including applications to freeze assets and secure funding for legal representation, is crucial. Olivia stresses the importance of survivors setting clear boundaries on what outcomes they are willing to pursue, balancing the pursuit of justice with the emotional and financial toll of prolonged litigation.

Read the full article on the FT Adviser website [subscription required].