When you and your spouse divorce, you have to divide your financial assets. While you may consider your bank accounts and your investments, you may not always think about your credit card rewards.
You and your spouse may have several credit cards with rewards programs. Finance Buzz says that it may be necessary to divide these rewards. However, there are several factors you need to consider. Whose name is on the credit card? You may only need to split the rewards connected to your joint credit card accounts. If one of you has a credit card for business expenses, these may be exempt from division.
How much are the points worth?
If you want to divide credit card rewards evenly, you have to assign a monetary value to them. According to Nerd Wallet, the number of points you have when you file for divorce determines the value. As you consider the monetary value, you should examine the way that a credit card company lets you redeem points. Some companies, for example, may let you redeem 30,000 points for $300 worth of expenses. In this situation, each point may be worth one cent. Once you know how much your credit card rewards are worth, you can divide them between the two of you.
How should you divide rewards?
The terms of the rewards program typically determine how you and your spouse split the points. Some programs may allow you to transfer them to a different person. In this situation, one of you could open a new account. However, some programs may not offer this option. When it is possible to transfer points, you may sometimes have to pay a transfer fee. There may also be a limit on the number of points you can transfer each year.
As you divide the credit card points, you may want to consider other rewards programs you are part of.