In a divorce, it’s likely that you’re going to face legal battles surrounding almost everything you owned together. Although ownership of companies and stocks in Texas are certainly one of the most important and thus get the most spotlight, there are other lesser-known battles you need to know about. One of those includes the splitting of credit card rewards. The following includes further information on this topic that you can use to determine the best route for yourself.
The exceptions
In many cases, attorneys and the courts will see credit card rewards as marital property, but much like with everything else, there are exceptions. One of the most common includes credit card reward miles earned through business travel/expenses. In this case, an attorney can argue that you have accumulated the rewards on not a personal credit card but in the name of a company. Thus, no rewards should be awarded to the other spouse.
Placing monetary value
Some credit card rewards can be exchanged for cash, but that exchange is often not the best route to take as the value you get in benefits is much greater. So, what can people going through a divorce do instead? You may be able to simply place a monetary value on the rewards you have. One of you will keep the rewards, and the other will receive a cash award for the split amount.
Opening up a new credit card
You can take this route if you are still married and worried about the potential scenario of a divorce, but you can also take it while splitting rewards during a divorce. You simply open a new credit card (using the same card company) and transfer half of the rewards to the other person’s card.
Going through a divorce is never a fun thing to do for anyone. However, it is important to keep your own interests in mind. You can do this by hiring a personal attorney who may be able to keep you on the right legal path.
