Who gets the credit card rewards in the divorce?

| Mar 19, 2016 | Uncategorized |

The process of dividing everything up during a divorce may seem complex if you and your spouse have a variety of assets such as tangible items, real estate and retirement accounts. Hiding financial information is illegal, and failing to disclose something could lead to conflict and litigation. When attempting to identify all shared property, Nasdaq suggests that you may also need to list your credit card rewards as marital assets.

It must be established that the credit card is a marital asset, which means one or both of you use it for personal expenses. If one spouse owns a company and the card and rewards are applied only to business expenses, both the asset and the debt may not need to be divided.

The first step of dividing credit card rewards is to check the policy associated with the account. In some cases, the process is outlined by the credit card company, which effectively provides a quick resolution to the issue. Other companies may explicitly state that the rewards cannot be divided, or that they have no cash value. At that point, you must consider other options.

When there are not a significant number of points or frequent flier miles, you may not want to bother with determining their worth. After all, credit card companies often do not allow them to be cashed out, and their purchasing power may vary. If you and your spouse do feel they are valuable as an asset, an online source may be helpful in putting an amount on them. This information is provided for your education, but it should not be taken as legal advice.

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