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Dividing unconventional assets: Credit card rewards

When it comes to a divorce in Clinton Township, Michigan, any asset the couple owns is subject to equitable division. While a valuation expert may be able to help place a dollar amount on objects such as antiques, art, automobiles and other tangible items, the value of credit card reward points may not be as easily identifiable.

According to NASDAQ.com, before the couple invests time and money toward the division of the rewards, it is important to decide if they are marital property. For example, if the rewards are typically used for personal expenses, they would probably be divisible. However, if one spouse owns a business and the line of credit and subsequent rewards are used solely for the company’s expenses, then the other spouse may not have a claim on them.

An amicable agreement to split the rewards on the account may be the simplest solution, if the couple can get along. If not, some companies allow the points to be transferred to another account, and some provide a cash value or allow the rewards to be cashed out. Parents may also agree to use the rewards exclusively for their children.

When these options are not feasible, but both spouses agree that it is an asset worthwhile to divide, Forbes recommends that they do their homework to assess the value of the item that may be purchased with the points, such as an airline ticket. Then, it can be treated as a tangible asset that the couple can use in negotiations to reach a settlement.

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Lorrie J. Zahodnic

"I will hold you up until you can stand on your own two feet."

Lorrie J. Zahodnic, P.C. has provided skilled and compassionate legal guidance to Michiganders in family law matters for over 20 years.

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