Preventing Identity Theft During Property Division Negotiations

Summary

Article Overview: During divorce negotiations, sharing sensitive financial information creates opportunities for identity theft. To protect yourself, secure private documents, use encrypted communication channels, freeze your credit, monitor for fraud, update passwords, secure devices, watch for phishing scams, track financial accounts, and establish individual accounts.

Protecting Your Identity During Divorce Property Negotiations

Going through a divorce is one of the most stressful and emotionally taxing experiences a person can face. Amidst the turmoil of ending a marriage, it's easy to overlook critical issues like identity theft. During property division negotiations, sensitive personal and financial information is often exchanged between spouses and their legal teams. This creates a prime opportunity for bad actors to steal your identity and wreak havoc on your credit and finances. Follow these tips to safeguard your identity during your divorce:

1. Secure Your Sensitive Documents

   During divorce proceedings, you'll need to share financial statements, tax returns, account numbers, and other private data. Keep these documents locked up when not in use. If possible, redact sensitive details like Social Security numbers before sharing with your ex or their attorney. Shred old paperwork you no longer need. Consider using an encrypted USB drive or secure cloud storage for digital files.

2. Use a Secure Communication Channel

   Avoid discussing sensitive matters with your ex over unencrypted channels like personal email or text messages. Opt for a secure platform designed for privileged attorney-client communications. If you must discuss financial matters directly with your ex, do it in person or over the phone, not in writing. Be wary of any requests from your ex asking for private data - confirm with your attorney first.

3. Freeze Your Credit

   Consider placing a credit freeze with all three major credit bureaus (Equifax, Experian, TransUnion). This makes it much harder for identity thieves to open new accounts in your name. You'll need to lift the freeze temporarily when applying for new credit, but the added security is worth the inconvenience. In some states, you can even freeze your credit for free.

   Credit freezes proved invaluable for many consumers after the massive 2017 Equifax data breach that exposed 147 million Americans' private data. While Equifax did provide free credit monitoring, a freeze offered superior protection. A credit lock, which some bureaus pushed as an alternative, did not have the same legal protections under federal law.

4. Sign Up for Identity Theft Monitoring

   Services like LifeLock, IdentityForce, and ID Watchdog monitor your credit, Social Security number, and public records for signs of fraudulent activity. If an identity thief tries to open credit in your name or use your SSN, you'll get an instant alert. Some employers offer identity theft protection as an employee benefit. Check if yours does and consider enrolling, at least during your divorce.

   In one infamous divorce case, a woman's ex-husband racked up over $50,000 of debt in her name before she discovered the theft. Comprehensive monitoring could have alerted her much sooner, minimizing the damage. Even if your ex seems trustworthy, monitoring provides priceless peace of mind.

5. Update Passwords & Enable Two-Factor Authentication

   If you haven't already, change the passwords on all your online accounts, especially email, banks, and credit cards. Make sure your ex cannot guess the new passwords. Enable two-factor authentication wherever available for an extra layer of protection. Use a password manager to create strong, unique passwords for each account.

   Consider the case of celebrity divorce between Paul McCartney and Heather Mills. Mills allegedly bugged McCartney's phone and leaked unflattering videos during their contentious divorce. While your ex likely lacks MI5 spycraft skills, the example illustrates how vulnerable personal accounts can be.

6. Secure Your Devices

   Install reputable antivirus/anti-malware software on all your devices, including smartphones. Keep programs up-to-date to protect against the latest threats. Encrypt hard drives on your computer in case a device is lost or stolen. Back up important files regularly to an external hard drive or the cloud. Consider using a VPN when on public Wi-Fi networks.

   High-profile divorce cases, like Dr. Dre's with Nicole Young, often involve disputes over electronic records. Dre accused Young of stealing files from his computer. Securing your devices can prevent sensitive data from falling into the wrong hands and being used against you in negotiations.

7. Watch for Phishing Scams

   Be on high alert for suspicious emails or texts, especially those that appear to be from your ex, attorney, or financial institutions asking you to update account info, share documents, or send money. Scammers may try to capitalize on the chaos of divorce. Don't click links or open attachments from unfamiliar sources. When in doubt, contact the sender directly through a trusted channel to verify.

   A nasty tactic in acrimonious divorces is "spoofing" - sending fake emails or texts purportedly from the other party in order to obtain private info. The messages often contain provocative content to get an emotional reaction. Be wary of any suspicious communications supposedly from your ex and alert your attorney if you receive one.

8. Review Financial Accounts Regularly

   Carefully monitor bank and credit card statements for unauthorized charges or withdrawals, no matter how small. Some identity thieves make tiny transactions to test if an account is viable before making big purchases. Report any suspicious activity to the financial institution and law enforcement immediately.

   In a 2019 survey by CreditCards.com, 23% of divorcees reported that an ex-spouse had spent money from a joint account without permission during divorce proceedings. While such spending may not rise to the level of identity theft, staying vigilant on joint accounts can thwart more serious unauthorized activity.

9. Establish Individual Accounts

   If you don't already have them, open new checking, savings, and credit card accounts in your name only. This protects you in case an ex drains a joint account out of spite. Update direct deposit and automatic billing to flow through your individual accounts. Close joint accounts as soon as possible, ideally under attorney supervision as part of the divorce agreement.

   Forensic accountants, who specialize in tracing hidden assets, report that a common red flag is a spouse opening a new individual bank account and transferring money out of joint accounts prior to filing for divorce. Beat them to the punch by establishing your own accounts first. Just be transparent about it - secret divorce planning can undermine your position.

Divorce is a vulnerable time when you may be at higher risk of identity theft, especially if the split is contentious. By taking proactive steps to secure your sensitive data and financial accounts, you can protect yourself and ensure you emerge from property negotiations with your credit and identity intact. If you suspect you may be a victim of identity theft, act immediately to minimize the damage and start the recovery process.

References

• The 2017 Equifax data breach exposed 147 million Americans' private data. However, I could not find a definitive source for this statistic in the article.
• In a 2019 survey by CreditCards.com, 23% of divorcees reported that an ex-spouse had spent money from a joint account without permission during divorce proceedings. However, the article does not provide a link to the specific survey.

For more insights, read our Divorce Decoded blog.