So they would have also had to know your username besides your password in order to get into your account. I have heard that popular free email accounts like Yahoo can be hacked with software...this is why it is best that you always delete any emails with passwords in them. Also using a combination of upper and lowercase and numbers can't hurt.
I do know when you receive or transfer domains with godaddy the other person has your user name...so you basically just gave away half of your security. It seems as technology keeps moving forward cyber security is lagging for sure.
You should check out some of the domain forums, I remember reading about someone losing $50,000 worth of domains stolen from his account. I guess it might be a good idea to start printing out your domain name receipts, and print or screen capture your whois pages for more proof.
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