When opening a credit card, many people ask about its point system and how the points can be redeemed. Depending on one’s lifestyle, he or she may choose a card with good travel points, gasoline points, or shopping points. What one does not ask about is whether the points can be transferred to their spouse in the event of a divorce. And for couples who have accumulated thousands of points, this can be a real bone of contention.
Can points go into separate accounts?
The simplest solution when it comes to dividing points may be to transfer half the points into one spouse’s account. However, this depends on the terms and conditions of the credit card. Some cards may not allow for these types of transfers, while others may charge a fee. For many, splitting up the rewards may not be worth it, which is why they prefer one spouse getting the rewards and the other getting an asset of the same value.
What is the value of my credit card rewards?
As with any asset, the first step is to assign a dollar value to the rewards. The dollar value should be based on the date the divorce petition is filed, as with other assets in a divorce. This means whatever points exist at that time is the number that will be divided between the parties. points may also be valued based on what they will be redeemed for, such as air travel miles.
It may be possible for one person to argue their points were accumulated prior to them getting married, while others may show that their points are joined to their business account, separate from their marriage. To understand how property division takes place and other family law matters, it might be beneficial to consult an experienced attorney for guidance.