Couples usually begin the divorce process by outlining the assets they own separately and jointly, in order to determine who gets what in property division. If Connecticut couples are able to make important property divisions on their own, it can ease the divorce for both parties, but many times they are unable to decide how assets should be split up. Additionally, some items may slip under the radar and cause dispute later, such as credit card points. This is because many people look at the debts and balances owed when it comes to splitting up, but what they forget is that credit card points can often add up to hundreds, if not thousands of dollars, and not all credit cards allow transferring those points to another person.
Marital status at time of opening credit card
If one party opened the credit card when single, and can demonstrate which points were earned before he or she got married, then that person may be able to hold onto those points as their own asset. If this is not the case, then either party has a chance of getting either half or all of the points, even if there is no joint account involved. Points earned during the marriage are marital property, irrespective of who earned them.
How should points be divided?
Couples should allocate a dollar value to the points, just like any other asset. Values are usually awarded based on the date the divorce petition is filed, so the amount of points at that time should be considered the amount that has to be distributed. Couples may also choose to add a value to the rewards based on what it can be redeemed for.
When dividing rewards, couples have to look to the terms and conditions of the credit card to see if they can be transferred to another person. While some cards may outright prohibit it, others may charge a fee. All of this needs to be factored into the property division process, and an experienced attorney can discuss this and other issues with those who need guidance on how to ensure an equitable distribution of assets and debts.