When people think about dividing assets in a divorce, they usually focus on the big-ticket items—homes, retirement accounts, and bank balances. But smaller, often overlooked assets can still carry meaningful value. One of the most commonly missed categories is credit card rewards, airline miles, hotel points, and similar perks.
These rewards can add up quickly, especially for individuals who travel frequently or run significant expenses through business or personal cards. The question is: Who gets them in a divorce?
Are Rewards Points Considered Marital Property?
In many cases, yes—rewards accumulated during the marriage may be considered marital property, particularly if they were earned through:
- Joint accounts
- Household spending
- Business expenses paid during the marriage
However, unlike traditional assets, rewards points are not always treated the same way by courts. Their classification and division can depend on:
- How they were earned
- Whether they can be valued or transferred
- The terms and conditions of the rewards program
The Practical Reality: Many Courts Don’t Divide Them
Even if rewards are technically marital property, courts often do not spend time dividing them.
Why?
- They can be difficult to value
- Many programs restrict transfer or assignment
- The value may fluctuate or be limited to specific uses
- The amounts, while meaningful, are often smaller compared to other assets
As a result, judges may leave these assets to be resolved between the parties—or simply award them to the account holder.
Ownership Usually Follows the Account
In practice, rewards points often go to the person whose name is on the account.
For example:
- Airline miles tied to one spouse’s frequent flyer account typically stay with that spouse
- Credit card rewards usually follow the primary account holder
This is especially true when the program rules prohibit transfers or impose significant restrictions.
When Rewards Can Be Divided
There are situations where rewards points may be addressed more directly:
- The points have significant value (for example, large balances from extensive travel or business use)
- The parties specifically raise the issue in negotiations
- The rewards can be redeemed or converted into something more tangible (travel credits, gift cards, etc.)
In these cases, the parties may agree to:
- Split the points
- Redeem them and divide the value
- Offset their value with other assets
Valuation Challenges
Determining the value of rewards points is not straightforward.
Considerations include:
- Redemption value varies widely (cash vs. travel vs. merchandise)
- Blackout dates and restrictions may limit usability
- Points can expire or be devalued by the program
For example, 100,000 airline miles might be worth:
- A few hundred dollars in cash equivalents
- Or significantly more when used for certain travel bookings
This variability makes precise valuation difficult and often not worth litigating.
Program Restrictions Matter
Many rewards programs include terms that:
- Prohibit transferring points to another person
- Limit transfers to family members or for a fee
- Allow the company to cancel or restrict accounts
Attempting to divide points in violation of these terms can create complications. Courts are generally reluctant to order something that cannot be easily enforced.
Strategic Considerations
Because of these challenges, rewards points are often treated as a negotiation item rather than a litigated issue.
For example:
- One spouse keeps the rewards in exchange for giving up something else
- Points are used before the divorce is finalized (with agreement)
- The issue is simply waived due to its relative size
In higher-asset cases or where rewards are substantial, it may be worth addressing more directly.
Common Mistakes to Avoid
1. Ignoring Them Entirely
Even if they are not the largest asset, they can still have real value.
2. Overvaluing Them
Treating points as equivalent to cash can lead to unrealistic expectations.
3. Violating Program Rules
Trying to transfer or divide points improperly can backfire.
4. Letting Them Become a Distraction
Focusing too much on smaller assets can take attention away from more important issues.
What About Joint Credit Cards?
If rewards are tied to a joint credit card account, the situation can be more complicated.
Options may include:
- Redeeming the points before closing the account
- Agreeing on how they will be used
- Allocating them as part of the overall property division
It is often best to address these accounts early in the process to avoid disputes later.
A Practical Approach
In most cases, the most practical approach is:
- Identify the rewards and estimate their general value
- Decide whether they are worth negotiating
- Resolve them as part of a broader settlement
For many people, the goal is efficiency—resolving the issue without unnecessary conflict or expense.
Final Thoughts
Credit card points, airline miles, and rewards programs are often overlooked in divorce—but they can still matter. While courts may not always focus on them, they can be addressed through negotiation and thoughtful planning.
The key is understanding their value, limitations, and role within the larger financial picture.
At Stange Law Firm, PC, we help clients navigate all aspects of property division—from major assets to the smaller details that are often missed. If you have questions about how assets may be divided in your case, we can help you develop a strategy that makes sense for your situation.
Contact us today to schedule a consultation. We are here to help you rebuild your life.
