Document Type

Article

Publication Date

2025

Abstract

Domestic violence is sadly and shockingly all too prevalent in the United States. According to the U.S. Centers for Disease Control, more than one in four women and one in seven men in this country are subject to domestic abuse “affecting an estimated 10 million people every year.”

Finances and financial abuse play a significant role in 99% of domestic abuse cases. “[L]acking financial knowledge or resources is the number one indicator of whether a domestic violence victim will stay, leave, or return to an abusive relationship.”When abusers have control over financial assets, victims are monetarily paralyzed and have little ability to escape their situation. Additionally, abusers can engage in financial sabotage maliciously and intentionally ruining the victim’s credit scores, taking their earnings, or “harassing them at their workplace until they lose their job and their own source of income.”

Some circumstances can make escaping one’s abuser even more financially challenging. When children are involved, escaping is even more critical but financially difficult for a victim to escape and stay free. Further, during high inflationary or economically volatile periods when expenses are higher and investment balances uncertain, it can be more financially challenging to break and stay free from one’s abuser. Such immediate financial constraints may influence the victim’s choice to stay in abusive situations, since victims may additionally consider the long-term economic impact that leaving these relationships may have.

Giving domestic abuse victims financial empowerment so that they can both escape their abuser and be positioned to stay free is crucial First, this essay focuses on the statutory requirements of the newly permissible 401(k) domestic abuse victim distributions. It then proffers how employers can help employees who are in abusive situations through employee benefits like their 401(k) plans. Specifically, it addresses how employers can shift to a more compassionate position by supporting and assisting their victim employees through their retirement plans.

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