Help! I Can’t Leave! I Have No Money!
Domestic violence victims face many challenges making leaving their abuser difficult, including lacking the financial resources to leave. On January 1, 2021, the California Legislature expanded California Family Code section 6320, subdivision ( c) to include “coercive control,” including limiting a victim’s access to funds, as domestic violence.
On December 29, 2022, the Federal Government followed suit, signing the Secure 2.0 Act into law. The Secure 2.0 Act (“Securing a Strong Retirement Act of 2022”) allows a domestic violence victims fleeing to safety access to funds. Immediate financial resources for relocation, legal fees, medical expenses, and/or other urgent needs can mean the difference between remaining a domestic violence victim and becoming a domestic violence survivor.
- Retirement Plan Withdrawals for Domestic Violence Victims: Under Secure 2.0, domestic violence victims can withdraw from their retirement accounts (i.e., 401(k)s, IRAs) without facing early withdrawal penalties. Generally, early withdrawals from these accounts are subject to a 10% penalty and income taxes; however, Secure 2.0 allows domestic violence victims penalty-free withdrawals of up to $10,000, provided the funds are used to remedy the victim’s emergent circumstances.
- Expanded Access to Retirement Savings: Secure 2.0 eases access to retirement savings in times of financial need, providing victims expanded access to emergency funds without additional financial hardship.
- Support for Financial Stability: Greater access to financial resources promotes financial stability for domestic violence victims, allowing them to break free from an abusive situation.
If you, your friend, or loved one needs assistance leaving an abusive situation, please reach out to Genesis Family Law immediately. It would be the pleasure of our many experienced attorneys to assist you.