Divorce can be daunting, especially when dividing up significant assets like a family home or a jointly-owned business. But if you love to travel, there’s another concern that can weigh heavily on your mind: what happens to your hard-earned frequent flyer miles and travel rewards? These points represent not just potential vacations but also countless hours of planning and adventure. The thought of losing them during a divorce can be stressful and frustrating. At The Law Offices of Michael A. Robbins, we understand this concern. With over 40 years of experience in handling unique assets in divorce cases, we’re here to help. In this post, we’ll explore how frequent flyer miles and travel rewards are typically managed during a divorce so you can move forward with confidence, keeping your travel dreams alive.
How Frequent Flyer Miles and Travel Rewards Are Classified in a Michigan Divorce
In Michigan, any property acquired during the marriage is generally regarded as a marital asset and thus subject to equitable division in the event of a divorce. This classification includes frequent flyer miles and travel rewards. Even if these rewards are registered under one spouse’s name, they are typically considered marital assets if both spouses used them and contributed to their accumulation. The only exception exists when only one spouse is the sole contributor and user of these rewards; in such cases, the unshared utilization and accumulation of points protect them from being classified as a marital asset, thereby exempting them from division.
What Will Happen to Your Frequent Flyer Miles and Travel Rewards During Divorce?
Once classified as a marital asset, frequent flyer miles, and travel rewards will be divided equitably between both parties in a divorce. Equitable division does not necessarily mean equal division; instead, the assets will be distributed fairly according to each party’s contributions to the marriage and their individual needs moving forward.
Frequent flyer miles and travel rewards often lack substantial value, giving you and your spouse significant influence over their distribution. Here are some viable options to consider:
- Transfer of Ownership: Many airlines and credit card companies permit the transfer of miles or points to another individual. This can be an effective solution if one partner has no immediate travel plans or interest in the rewards.
- Offset with Other Assets: Instead of directly dividing the miles or rewards, couples may allow one spouse to retain them in exchange for a larger portion of another asset, such as savings or personal property.
- Equitable Valuation and Adjustment: Assign a monetary value to the miles or points and adjust the distribution of other assets accordingly, ensuring that both parties receive a fair financial settlement.
- Mutual Agreement on Usage: Both partners can collaboratively decide how the miles or points will be utilized, potentially establishing a schedule for usage or specific travel arrangements. This option can also help minimize future conflicts and ensure neither party feels cheated out of their fair share.
Tips for Protecting Your Rewards in Divorce Negotiations
While the methods mentioned above can help you protect your frequent flyer miles and travel rewards during divorce, there are additional steps you can take to ensure a smooth and fair distribution process. Here are some tips to consider:
- Keep Records: It’s essential to have documentation that proves both spouses contributed to earning the miles or points. This includes credit card statements, receipts, and travel itineraries.
- Understand the Terms of Your Rewards Programs: Different airlines, hotels, and credit card companies may have varying policies on transferring ownership or dividing rewards in a divorce. Be sure to familiarize yourself with these terms beforehand so that you know what options are available.
- Communicate: Open and honest communication with your spouse about the value of your rewards and how you would like them to be divided can help streamline negotiations and potentially avoid conflicts.
- Seek Legal Advice: Divorce negotiations can be complex, especially when dividing unique assets like frequent flyer miles and travel rewards. It’s crucial to find a divorce attorney who can guide you and protect your interests.
Let Us Help You Keep Exploring!
While going through a divorce is never easy, understanding how frequent flyer miles and travel rewards are classified and distributed in Michigan can provide peace of mind during this challenging time. With proper planning, communication, and legal guidance, you can reach a fair agreement that allows you to retain your hard-earned travel rewards and continue exploring the world. If you need assistance navigating a divorce involving unique assets, The Law Offices of Michael A. Robbins are here to help. Contact us today for a confidential consultation, and let us advocate for your best interests. Let’s keep your travel dreams alive!