A recent report from the Inspector-General of Taxation exposed a shocking issue: the ATO is pursuing victim-survivors of financial abuse for tax debts they didn’t cause. And while financial abuse is not confined to one gender, the reality is the majority of victim-survivors are women.

For many, these debts are the end of years of coercive control and unpaid labour inside a family business. A partner might misuse their identity, keep them in the dark about finances, or pressure them to sign documents they don’t fully understand.

When the ATO holds these women legally responsible, without offering proper investigation or support, it compounds their trauma. Instead of helping them rebuild, the system strips away financial autonomy and makes recovery even harder.

Family therapist, couples mediator and advocate for women in business Dr Darlene Barton has seen the devastating impact of this first-hand. Speaking to Business Builders, she explained how financial abuse shows up in small business, why women are more vulnerable, and what needs to change.

Hidden debts and broken trust

According to Dr Barton, the issue is far more common than people think.

“In my practice, it is not unusual to see women blindsided by debts or legal obligations tied to a business they never actively ran or benefited from,” she says. “Often, these debts are only uncovered during separation or once the relationship deteriorates.”

She shares the story of one woman who thought she was just helping her husband with paperwork. Years later, she discovered she had been listed as a company director—leaving her solely liable for large tax debts after he declared bankruptcy.

“She lost her home, couldn’t access finance for years, and the betrayal cut deeper than the debt itself,” Dr Barton recalls.

How coercive control plays out in business

Financial abuse in small business settings rarely starts with obvious fraud. More often, it begins with subtle control: “Just trust me,” “Don’t worry about it,” or “Sign this quickly or we’ll lose the opportunity.”

Over time, women can be completely shut out of financial conversations, denied access to accounts, and unknowingly placed in positions of legal responsibility.

“There’s a persistent imbalance in how financial roles are managed in family businesses,” says Dr Barton. “Women are often excluded from key decisions, discouraged from asking questions, or told their partner is ‘protecting’ them by handling the money. In reality, this lack of transparency leaves them extremely vulnerable.”

The emotional toll of financial betrayal

Discovering you’re liable for a debt you never agreed to can be shattering.

“Many women feel shock, betrayal, anxiety and shame,” says Dr Barton. “They question their judgment and feel complicit in something they never truly consented to. It’s not just financial loss—it’s an identity crisis. These are women who’ve worked hard to support a business, only to realise they were kept in the dark.”

Financial abuse rarely occurs in isolation. It often compounds existing trauma from emotionally or psychologically abusive relationships.

“When a woman realises the extent of the deception, it reactivates feelings of powerlessness and grief,” Dr Barton explains. “It’s another layer of loss, fear and confusion.”

Early warning signs of financial abuse

So, what are the red flags to look out for? Dr Barton say there are warning signs.

• Being discouraged from asking financial questions
• Being asked to sign documents without full disclosure
• Being kept away from key meetings or financial records
• A partner becoming defensive or dismissive when finances are raised

“If your partner uses guilt or pressure to silence you around money, that’s a serious warning sign,” Dr Barton cautions.

Protecting yourself in business partnerships

When it comes to going into business with a partner or spouse, particularly in a family setting, Dr Barton stresses that trust alone is not enough. The healthiest partnerships are built on transparency and legal safeguards. That starts with drawing up a proper partnership agreement with an experienced lawyer, something many couples overlook in the belief that love or loyalty will see them through.

She warns women to never to sign documents they don’t fully understand, no matter how much pressure they may be under. Independent legal or financial advice is essential before agreeing to anything that could put their home, assets, or children’s future at risk.

“A business built on trust still needs legal clarity.”

What to do if you’re already facing financial abuse

For those already grappling with debts or the fallout of financial abuse, Dr Barton says the first step is to get organised. That means gathering every document you can, from emails to bank statements to business records, and piecing together a clear timeline of what has happened. With that evidence in hand, the next move is to seek advice from a lawyer or financial counsellor who understands the dynamics of financial abuse.

Equally important is emotional support. Working with a trauma-informed therapist can help women process the betrayal and begin to rebuild their sense of control.

“Most importantly, don’t try to navigate this alone. Support is available.”

Key starting points include the National Debt Helpline, community legal centres, women’s advocacy organisations, and domestic violence services that increasingly recognise financial abuse as part of the picture.

Where the system is failing

One of the biggest issues, Dr Barton says, is that institutions like the ATO often assume all parties in a business or relationship have equal power and agency.

“The system has little room to account for coercion or deception,” she explains. “Victims carry the burden of proof, which only adds insult to injury. ATO processes need the flexibility to recognise financial abuse and pause enforcement until circumstances are properly investigated.”

The need for systemic change

Dr Barton believes policymakers must acknowledge financial abuse as a form of family and economic violence. She argues reforms are needed across tax law, corporate law and banking systems to protect vulnerable parties.

“Institutions need trauma-informed processes and independent legal sign-off requirements for partnership or director documents,” she says. “There must also be fair review and appeal processes. Education campaigns and stronger financial literacy support will also make a huge difference.”

The road to recovery

Dr Barton says despite the trauma, recovery is possible.

“Support is the key,” says Dr Barton. “Trauma-informed therapy, financial literacy coaching, and safe peer groups help women heal and rebuild. Over time, many not only regain their footing but thrive—often becoming powerful advocates for transparency and independence.”

Her final piece of advice for women in small business today?

“Stay curious. Stay informed. Never sign away your future out of loyalty, love, or pressure.”

She adds: “Protect yourself not because you expect the worst, but because you deserve peace of mind, clarity and control over your own life.”

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