Identity Theft & Divorce
Dividing finances in divorce is already difficult—but what happens when your ex uses your personal information against you? Identity theft is a real risk after separation, especially when your ex has access to past accounts and sensitive data. Learn how to protect yourself, what warning signs to watch for, and what legal steps to take if your identity is stolen.
Having your identity stolen is a violation, even more so when that theft is committed by someone you once trusted
The arduous process of disentangling your finances from your ex-spouse’s can be one of the most difficult parts of a divorce. Where once you shared joint accounts, credit cards, and loans, ideally, each will walk away with separate accounts and debts. However, that history of intermingled finances also means that ex-spouses typically have enjoyed access to all the personal information that would enable them to fraudulently open a new account in their ex’s name or obtain access to an existing one. Exploiting that knowledge is identity theft, and it can be a serious risk after a divorce.
While it is possible to fight back against the damage that identity theft can do to your credit score and your finances, prevention is the best strategy. Taking proactive steps to lock down access to your accounts and ensure that unauthorized parties cannot use your personal information to open new ones can minimize the chances your ex will be able to vindictively or opportunistically use your identity without your consent. Understanding your legal rights and the right channels for reporting and contesting identity theft are also key to swiftly limiting the fallout if the worst should occur.
Preventing Identity Theft After Divorce
When an ex-spouse commits identity theft, it can show up in different ways, such as using an old credit card they once had access to, making purchases with saved account info, tapping into your bank account, or even opening new credit lines in your name. Whether it stems from entitlement or a desire to cause harm, it’s still illegal. The best way to protect yourself is to secure your existing accounts and implement safeguards.
This should start with changing your passwords to all your digital accounts and enabling two-factor authentication to enhance their security. Using a password manager helps make it easier to use a strong, unique password for each account instead of repeating easily guessed passwords that your ex may be familiar with. Reset your security questions as well, as those often rely on personal details an ex would know or be able to guess. If you are still using a credit card that was previously shared—for example, one where your ex was an authorized user but has since been removed—request a replacement card with a new number, if you have not already done so.
To completely prevent the possibility of a creditor extending new credit in your name without your knowledge, you can set up a credit freeze (or security freeze) at the three major credit bureaus, which restricts them from sharing your credit report or credit score. You must contact all three major credit bureaus to freeze your credit:
Freezing, unfreezing, or temporarily lifting a freeze so that you can apply for a new account are all free and do not affect your credit score.
In addition to these post-divorce security measures, it is a good idea to continue to monitor your credit by periodically requesting a copy of your credit report. (This can be done for free at AnnualCreditReport.com.) Any unfamiliar or unexplained activity is a red flag for possible identity theft and should be followed up on immediately.
What to Do If Your Ex Steals Your Identity
Remember, any unauthorized financial activity done in your name is considered fraud, and it is important to act quickly once you become aware of it. Steps to take include:
- Calling the companies where you know fraud occurred to explain that the activity is due to identity theft and to ask them to close or freeze the accounts.
- Placing a fraud alert at one of the three major credit bureaus. They are legally required to contact the other two to share the fraud alert. If you had not previously done so, it is also advisable to freeze your credit as described above.
- Obtaining a current copy of your credit report to check for additional fraudulent activity.
- Reporting the identity theft to the Federal Trade Commission (FTC) at IdentityTheft.gov. This will create an Identity Theft Report that you can share with businesses and law enforcement and a recovery plan that helps guide what actions you should take next.
- Filing a police report. Under California law, this can be done by contacting the local law enforcement agency that has jurisdiction over the victim’s residence or place of business. You will need to provide a copy of your FTC report, your government-issued ID, and other proof of identity theft. A police report may be required by financial institutions or other organizations to reverse fraudulent charges or close unauthorized accounts.
You may also wish to contact an attorney at this point to ensure that you understand your rights and to provide accurate legal advice for your individual situation.
Legal Recourse for Identity Theft
Both federal and California law provide rights and protections to victims of identity theft to help prevent them from being held liable for fraudulent charges and debts. In addition to the ability to file an identity theft report and police report, legally victims have the right to:
- Get copies of documents relating to fraudulent transactions or accounts and to have those records shared with law enforcement agencies.
- Block fraudulent information from appearing on their credit report.
- Dispute inaccurate or fraudulent information on their credit report with a credit reporting company, which is required to investigate their claims.
- Stop debt collection actions on debts that result from identity theft.
- Stop debt collectors from contacting them.
California law also entitles victims of identity theft to one free copy of their credit report per month for the 12 months following the date of their police report.
Identity theft can be criminally prosecuted as either a misdemeanor or a felony in California, depending on the circumstances of the case and the defendant’s prior record, and may result in fines and/or jail time. In addition, victims can file a civil lawsuit against the perpetrator, but whether this is advisable depends on the damage done and the prospects for recovery. It is best to consult with a knowledgeable attorney to chart the most effective course to restore your credit and guard against future incidents of identity theft.
Expert Family Law Representation to Safeguard Your Financial Future
Having your identity stolen is a violation, even more so when that theft is committed by someone you once trusted. The experienced family law attorneys at Hoover Krepelka can provide the legal representation and guidance you need to minimize the threat of spousal identity theft after divorce or to pursue available legal remedies if you have been a victim. To schedule your consultation, fill out the form below today.
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FAQS
How can I prevent identity theft after a divorce?
Start by changing all passwords, closing shared accounts, and freezing your credit. It’s also smart to update your security questions and remove your ex from any remaining account access.
What legal actions can I take if my ex-spouse steals my identity?
You can file a police report, dispute fraudulent charges with creditors, and report the theft to the FTC. Depending on the severity, you may also be able to press criminal charges or pursue civil action.
How do I monitor my credit for fraudulent activity post-divorce?
Use a credit monitoring service or request free reports regularly from all three major bureaus and look for unfamiliar accounts or inquiries. Placing a fraud alert or credit freeze can also help flag or prevent suspicious activity.
