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What happens to rewards points during a divorce?

| Jul 12, 2021 | Divorce |

With the increasing cost of everyday items, many Marylanders appreciate the perks that come from accumulating rewards points. Whether you collect credit card points, airline miles or other points, your rewards points may have considerable value.

If you and your soon-to-be ex-spouse have accrued rewards points during your marriage, your points are probably marital property. In Maryland, during divorce, courts tend to give each spouse an equitable share of the marital estate.

Valuing rewards points

Before entering into settlement negotiations or going to court, you probably want to value everything you and your spouse own. While valuing your house, car, retirement accounts and other assets may be straightforward, determining how much rewards points are worth can be challenging. After all, rewards programs often expressly state their points have no value. Consequently, you may need to consider the value of the perks your rewards points buy to determine their value.

Dividing rewards points

Dividing rewards points can also be difficult. If your rewards program does not allow for the transfer or sale of points, you and your husband or wife may have to come up with a way to share the points. Alternatively, either of you may be able to give up assets or cash in exchange for exclusive ownership of the rewards points. Either way, reading through the rules of every rewards program in which you participate may be helpful.

According to Lending Tree, most airline miles are worth approximately 1.3 cents each. Other rewards points may have a similar or even higher value. Ultimately, because they have the potential to be a valuable part of your marital estate, your rewards points should be part of your divorce settlement or judgment.