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Who gets the credit card reward points in a divorce?

On Behalf of | Jan 23, 2025 | property division |

Divorce can be a complex process, especially when it comes to dividing assets. One often overlooked aspect is credit card rewards points. You might be wondering who gets to keep these valuable perks when a marriage ends.

Understanding marital and separate property

In most cases, assets acquired during a marriage may count as marital property and are subject to division during a divorce. Separate property, on the other hand, typically includes assets owned before the marriage or received as gifts or inheritances during the marriage.

Credit card reward points can fall into either category, depending on when and how you earned them. Courts generally consider points you accumulate on a joint credit card or through purchases made with marital funds as marital property. However, they might classify points you earn on an individual card using separate funds as separate property.

The value of credit card rewards points

Credit card reward points can have significant monetary value, especially if you have accumulated them for years. While their worth may vary, you could redeem these points for travel, merchandise or cash back. In some cases, they could be worth thousands of dollars.

It is important to consider the value of these points when dividing assets during a divorce. You may want to have them appraised or estimate their worth based on current redemption rates.

What happens to the points?

The fate of credit card reward points in a divorce can depend on the following factors:

  • The type of account (joint or individual)
  • How the points were earned
  • State laws regarding property division
  • Any prenuptial or postnuptial agreements

Sometimes, couples may choose to split the points evenly or negotiate their division with other assets. Alternatively, one spouse might keep the points in exchange for giving up something else of equal value.

It is important to note that every situation is unique, and there is no one-size-fits-all solution. If you are going through a divorce and have questions about credit card reward points or any other property division matters, it may be helpful to consult an attorney. They could provide guidance tailored to your specific circumstances and help ensure a fair division of assets.

 

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