When couples divorce, they usually think about dividing their home, bank accounts, and retirement funds, but what about frequent flyer miles, hotel points, and credit card rewards? In North Carolina, these valuable assets are treated just like other marital property and may need to be divided fairly between spouses.
Here’s what you need to know about how the courts handle reward points in a divorce and how you can protect your share. Contact a North Carolina Lawyer today.
Are Frequent Flyer Miles and Reward Points Considered Marital Property?
In North Carolina, the court uses a process called equitable distribution to divide marital property. This includes any assets acquired during the marriage, regardless of whose name they are in.
This means that:
- Airline miles, hotel points, and credit card rewards earned during the marriage are usually considered marital property.
- Points earned before the marriage or after the date of separation may be treated as separate property and remain with the spouse who earned them.
However, proving when points were earned can be tricky. Your attorney may need to review account statements or travel records to determine what portion of the points are marital.
Challenges of Dividing Points and Miles
Unlike cash or tangible property, reward points are not always easy to split. Airlines and credit card companies have different policies about transferring points to another person’s account.
Some challenges include:
- Non-transferability: Many reward programs do not allow points to be transferred except in the case of death.
- Changing values: The value of points can fluctuate depending on program rules, redemption options, and availability.
- Tax implications: Some transfers of points can result in fees or even tax reporting, depending on the provider’s terms.
Because of these challenges, courts often look for creative solutions to divide the value fairly. If you are not sure how to proceed? Contact an attorney today.
Common Solutions Used by North Carolina Courts
Here are some ways frequent flyer miles and reward points can be divided:
- Awarding all points to one spouse and giving the other spouse another asset of comparable value.
- Splitting points evenly if the program allows transfers.
- Requiring shared use of the points for a set period, especially if there are large balances that cannot be split.
- Assigning a monetary value to the points and including that value in the overall property division calculation.
An experienced North Carolina family law attorney can help negotiate a solution that works for you and present it to the court for approval.
Tips for Protecting Your Rewards
If you are going through a divorce and want to make sure your share of points is protected, consider these steps:
- Gather account statements showing balances and when points were earned.
- Calculate the approximate value of the rewards using the airline or credit card company’s published redemption rates.
- Ask your attorney about negotiating for the points or requesting a fair trade for other assets.
- Avoid redeeming or transferring points during the divorce process without the court’s or your spouse’s consent, as this may be seen as dissipation of marital assets.
Why You Need a Divorce Lawyer
Dividing reward points is just one part of the bigger picture of equitable distribution. A skilled divorce lawyer can:
- Ensure all marital assets — including less obvious ones like reward points — are disclosed.
- Help you determine the value of your points and negotiate for a fair share.
- Prevent your spouse from secretly redeeming or using points before they are divided.
The attorneys at Martine Law understand how to handle complex property division issues and protect your financial interests during divorce.
Key Takeaways
- Frequent flyer miles and reward points earned during marriage are marital property in North Carolina.
- Courts may divide points by awarding them to one spouse, splitting them, or assigning them a monetary value.
- Documentation is key — keep track of balances and earnings before and after separation.
- Work with an experienced attorney to ensure all assets are accounted for and divided fairly.
If you are going through a divorce and have frequent flyer miles, hotel points, or credit card rewards at stake, protect what you’ve earned.
Our North Carolina divorce attorneys will help you achieve a fair property division — including those hard-to-value assets.