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How to divide hotel points, credit card rewards and airline miles

On Behalf of | Feb 5, 2024 | Family Law

Asset division is an important part of many divorces. In some divorces, especially splits involving high net worths, assets may include hotel points, credit card rewards, airline miles and the like.

In Virginia, navigating this division can be complex but is necessary to ensure a fair and equitable distribution.

1. Identify and list all reward programs

Identify and list all rewards programs with points accumulated during the marriage. This includes points from hotel loyalty programs, frequent flyer miles and any credit card rewards points.

Understanding the source of the accumulated points is necessary. Differentiating between points earned individually and those acquired jointly during the marriage can help with a fair division. Points earned before the marriage may be separate property.

2. Assign a monetary value

Assigning a monetary value to these points, rewards and miles is another important step. Research the cash value of the points or consult with the respective loyalty program providers. Determining a fair value aids in an equitable distribution.

3. Consider contribution and usage

Take into account each spouse’s contribution to the accumulation of points and their respective usage patterns. This factor can influence the division, as the spouse who actively contributed to earning the rewards may have an entitlement to a larger share.

4. Explore trade-offs and compromises

Divorce often involves negotiation and compromise. Explore potential trade-offs where one spouse may receive a larger share of hotel points while the other gets a more significant portion of credit card rewards. Finding a balance that both parties agree upon is key.

5. Document the agreement

Document the division clearly and comprehensively. This documentation can serve as a reference in case of any future disputes. It ensures that both parties are aware of their entitlements.

By following a systematic approach and considering the unique circumstances of the marriage, couples can achieve a fair and amicable distribution of these assets.