During a divorce in Michigan, it is standard to divide up property between the two parties. Most couples focus on money, investment portfolios, real estate, artwork and other traditional assets. However, many couples are finding that they have other assets that require division, such as airline miles.
It might seem a bit ridiculous to fight over frequent flyer miles. However, when a couple has acquired a fair amount of points, they become valuable and worth taking some time to include in the property division, according to Forbes. Although these rewards are not cash, they do have an equivalent cash value, such as the price of an airline ticket. In some cases, it is best to simply determine the cash value of the air miles and then use it as part of the negotiation for other, comparable items of value.
It is more complex to determine the value of airline miles than other assets. Although some companies make it easy to calculate the cash value by providing estimates, many do not. This means that the parties have to agree upon an accepted estimated value and use this number to determine how to fairly divide them up.
Some companies make it easy to divide the points by adding information in their terms and conditions that declare what should occur in the case of divorce. Often, this is to declare the miles non-transferable, but some companies will divide the rewards points equally between the parties.
According to NASDAQ, some of the most popular ways that couples divide their frequent flyer miles is to simply have one spouse pay off the other spouse for half the cash value of the points. In more amicable divorces, the divorce agreement might include a stipulation that each person has access to an equal share of the miles. Another popular option is to give the points or rewards to the children rather than trying to divide them.