Uncovering a Hidden Harm: Research that is reshaping financial abuse laws

A/Prof Vivien Chen, 2026

How it began

Vivien Chen came across the problem of coerced debt while working as an honorary research fellow at Melbourne Law School on an Australian Research Council Linkage Project on harmful financial products. While looking into challenges faced by people experiencing vulnerability, she saw a link between single mothers, family violence and debt. She also teaches corporations law, and one of the topics covers directors' liability for insolvent trading even if they are not involved in business decisions. During the COVID-19 pandemic, while financial difficulties, family violence and business challenges were increasing, she realised that uninvolved directors could potentially at times be victim survivors experiencing coercive control. She spoke to Carolyn Bond, who was then leading the Economic Abuse Reference Group (EARG). About a year later, Carolyn contacted her about collaborating with the EARG on a submission to the Parliamentary Joint Inquiry on Corporations and Financial Services which was then looking into corporate insolvency.

Purpose

Economic abuse is a poorly recognised form of family violence. Coerced directorships of family businesses are a particularly hidden form of economic abuse that leaves victim survivors with long-lasting and devastating impacts, such as the loss of their homes, bankruptcy and persistent financial hardship. The harmful impacts of coercive control are exacerbated by commercial laws and systems that are susceptible to being weaponised.

Practice

Vivien’s research exposes how the assumptions underpinning corporate law fail to account for the lived experience of coercive control. She collaborates with the EARG, a network of not-for-profit professionals who assist victim survivors, to collect qualitative empirical evidence that reveals how victim survivors are coerced into becoming directors of family companies, and into other arrangements that leave them liable for business debts. Their research exposes the inadequacy of current corporate, commercial and tax laws vis-à-vis economic abuse, and they explore reforms aimed at addressing systemic weaknesses.

Output

Her article published by UNSW Law Journal led to government agencies seeking her assistance in further data collection. Her subsequent report, co-authored with Jasmine Opdam from Financial Abuse NSW, was widely featured on ABC television, radio and online news platforms. They met with Treasury in Canberra and shared the findings from the empirical study. In November, Treasury announced a public consultation to proposed law reforms to mitigate harm experienced by victim survivors who have been coerced into becoming company directors. The proposed reforms were consistent with their empirically-based advocacy.

Vivien was invited by the Federal Circuit and Family Court of Australia and the Australian Securities and Investments Commission to share the empirical findings at a judicial education session and their staff training session respectively.

Outcome and impact

The government has since announced that they will be introducing new laws aimed at curbing economic abuse through coerced directorships. The empirical research revealed that accountants and other professionals have unwittingly facilitated the perpetration of financial abuse through business arrangements. CPA Australia have since released a suite of resources for their members, to raise awareness of financial abuse and outline steps that accountants can take to disrupt and prevent such harm.