Ms Henare said it was a common tactic for men to exert control over a woman by controlling access to money and giving her a limited amount to meet all the household costs.
"And he comes home and checks the receipts, the mileage on thecar, the phone for toll calls, allthat kind of stuff. That is a frequent controlling factor that men usein violent relationships."
The change will mean such behaviour is treated on a par with physical violence by the Family Court and people subjected to it can seek remedies such as protection orders, which require an abuser to stay away from family members.
Ms Henare said there was often some other form of physical or psychological abuse alongside economic abuse.
However, there is some dispute about whether the change is necessary. Ministry of Justice advice said it would better educate people about economic abuse and could strengthen some applications for protection orders which would otherwise be declined.
Garry Collin, the head of the Law Society's family law section, said it was a complicated area but was common in some cases such as "dial a brides" where somebody brought a bride from overseas and then withheld independence or support.
He said the change was possibly unnecessary because that type of abuse was already covered under the wider psychological abuse.
He was most concerned about other changes in the Family Court Proceedings Reform Bill - such as a proposed $900 fee separated parents will have to pay for a mandatory new Family Dispute Resolution Service to try to sort out custodial issues before the courts will step in.
Mr Collin said the Law Society supported the new service but the high fee would be an obstacle to justice for many who could not afford it.
He was also concerned about changes which prevent applicants using legal representation until the court has accepted their case.
Proposed law change
* Includes "economic abuse" in the definition of domestic violence in the Domestic Violence Act.
* Will allow victims to seek same remedies as for physical abuse, such as protection orders keeping their "abuser" away from them.
* Includes restricting access to money, extorting money, spending victim's money, or preventing someone from going to work.
* Affects abused partners, the elderly, and disabled.
* Previous discussion about including it was rejected because it was considered to be already covered by the wider category of psychological abuse.