Divorce & Credit Card Points: How are they split?

Credit Cards laying on top of one another

When getting a divorce, there are obvious concerns when it comes to the division of assets and debts, including property and money. However, there is one asset that has the potential to be easily overlooked, yet valuable—and that is credit card rewards.

Nevada is a “community property” state so all assets and debts accrued throughout the course of a marriage are up for a 50-50 split between the parties during the divorce. This includes credit card rewards and is notwithstanding of whose name is on the credit card account. If the points were acquired during the marriage, it will likely be considered community property.

Definition of Community Property: Pursuant to Nevada Revised Statutes Section 123.220, community property is defined as all property, other than separate property as stated in NRS Section 123.130, acquired after marriage by either husband or wife, or both, unless otherwise provided by:

  1. An agreement in writing between the spouses.
  2. A decree of separate maintenance issued by a court of competent jurisdiction.
  3. NRS Section 123.190, to wit: When the husband has given written authority to the wife to appropriate to her own use of her own earnings, the same with the issues and profits thereof, is deemed a gift from him to her, and is, with such authority to the husband to appropriate to his own use his earnings, the same, with the issues and profits thereof, is deemed a gift from her to him, and is, with such issues and profits, his separate property.
  4. A decree issued or agreement in writing pursuant to NRS 123.259.

All community property, other than property noted as separate property of the party by the provisions of Nevada Revised Statute 123.130, that is acquired after the marriage by either spouse, would be defined as community property, subject to equal division upon divorce.

Since credit card rewards do have monetary value, and take both time and effort to accumulate, this can become an important question at some point during the division of assets—what happens to my credit card points and how are they split?

How to Divide the Points

The first step for dividing credit card rewards is determining their monetary value. There are options to consider:

  • The parties can cash out the points and split the funds received equally.
  • If there are multiple accounts, and multiple assets being divided, the parties may agree to assign specific accounts (with the associated rewards) to a particular party. This is subject to negotiation. This can be especially helpful when the conditions and terms of some rewards programs do not allow points to be split, transferred, or cashed out.

In the end, choosing an attorney who can assist you in navigating this issue during your divorce negotiations is important, and must be handled properly from the beginning.

If your credit card points are an asset you would like to keep after your divorce and/or is a valuable asset to be identified and divided, please be sure to bring this up to your attorney from the beginning of your case so the subject can be appropriately addressed when the time comes.

Have Questions? Call Our Firm Today!

It is important to note that specific legal advice should be sought from a qualified attorney in Nevada when considering the division of assets and debts during a divorce. Our firm acknowledges that a divorce can be difficult, and that assets such as the accumulation of credit card points can present value not only monetarily, but also emotionally. At Law Practice, Ltd., we will guide you through this process and do our best to always ensure the best outcome for our clients.
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