Dividing Credit Card Points During Divorce

Dividing up assets during divorce can be challenging, and credit card points are often particularly difficult. While most people don’t think about credit card points as an asset, rewards can quickly add up. Unfortunately, many cards don’t allow owners to transfer points to someone else. What can you do?

Separate or marital property?

The first question is whether the points are separate or marital property. If you earned the credit card points while single, it’s likely to be considered a separate asset. However, if the points were earned during marriage—even if the card is only in one spouse’s name—they’re considered marital property.

Valuing credit card points

Like any marital property, the key to equitable division is to assign the points a dollar value. That’s easier with some types of rewards than others. A skilled attorney can help you figure out how much airline miles and other rewards are worth.

Once you know the dollar value, you have two main options: either transfer half of the rewards to your spouse, if the credit card company allows it, or give your spouse the equivalent value in another way. For example, you could offer your spouse cash or a larger share of other assets.

Is it worth fighting over?

Although spouses are entitled to their share of rewards points, your attorney can help you decide whether it’s worth fighting over. If you’re experiencing a high-conflict divorce, it might not be worth a few hundred dollars in rewards—especially if you have to go to court to get them to hold up their end of the bargain. However, if the rewards are particularly valuable, it may be worth the effort.

When you’re ready to file for divorce, call the knowledgeable divorce lawyers at Jakubowski, Robertson, Maffei, Goldsmith & Tartaglia, LLP for a consultation.