Loyalty programs are popular marketing strategies that businesses use to lure customers. The incentives of reward points, which are often exchanged for products and services, help companies retain customers. These intangible reward points are considered currency and can include frequent flyer miles, credit card points, as well as hotel, restaurant, and retail rewards. As trivial as it may seem, reward points are often contested during divorce proceedings.
Identifying ownership of reward points can be challenging. A divorce attorney who understands the complexities of equitable property division can determine if reward points are marital or non-marital property.
Two Ways Reward Points are Marital Property
Timeline of accrual – Reward points earned during the marriage are deemed marital property. The credit card account holder’s name is inconsequential as long as the accrued reward points occurred during the marriage. Even if the accrued reward points were through business travel or expenses, points from a corporate credit card are marital assets. Although some credit card reward points are not transferable, some offer cash-back benefits. The value of reward points exchanged for goods and services could be estimated and included in the settlement.
...