Enrolling in credit card rewards programs is a fantastic way to save money on groceries, entertainment activities and travel expenses. Because rewards points may have considerable value, you and your soon-to-be ex-spouse may have a keen interest in keeping them.
Illinois law entitles you to an equitable share of everything you and your spouse own. Whether you plan to have an uncontested divorce or to end your marriage through litigation, you should think about the future of your rewards points.
Are your rewards points exclusively yours?
While you must divide marital assets, you can probably keep your separate property. If you accrued rewards points before you walked down the aisle, they may already be exclusively yours. On the other hand, points accumulated during your marriage may belong to both you and your husband or wife, regardless of whose name is on the credit card.
How much are your rewards points worth?
If your rewards points are part of the marital estate, you must know how much they are worth to divide them equitably. Unfortunately, many rewards programs expressly state that their points have no monetary value. With others, value may be minimal. For a realistic valuation, you may have to calculate the value of your points based on the perks they offer.
Can you transfer accrued points?
While splitting points down the middle may be the easiest approach, you may have an additional hurdle to overcome. Many rewards programs expressly disallow the transfer of points. If this is the case, you or your spouse may have to give up something of equal value in exchange for total ownership of the points during your divorce.
