How to Split Frequent Flyer Miles and Travel Benefits After Divorce

When people think about dividing assets during a divorce, their minds usually jump to homes, bank accounts, and retirement plans. But there’s a hidden category of assets that often gets overlooked—frequent flyer miles and travel perks. These rewards, accumulated through years of travel and credit card use, can be surprisingly valuable. If you or your spouse have built up points or miles, understanding how to fairly divide them is essential to ensure your divorce settlement covers every asset.

In this article, I’ll walk you through how to handle frequent flyer miles and travel benefits in divorce cases, sharing practical tips and real-world examples to help you navigate this unique challenge.

Understanding the Nature of Frequent Flyer Miles and Travel Rewards

First, it’s important to recognize that frequent flyer miles and travel perks are quite different from traditional assets. Most airline and credit card reward programs have specific terms and conditions that govern how points are handled, especially after a divorce.

Many programs consider points as non-transferable, meaning they belong solely to the account holder and cannot be split or reassigned directly. This can create complications when trying to divide these assets fairly.

What This Means for Your Divorce Settlement

Just because an airline or credit card issuer won’t divide miles or points doesn’t mean you can’t reach an agreement. The key is to get creative and work out a fair solution that can be included in your divorce judgment.

Options for Dividing Frequent Flyer Miles and Travel Benefits

Here are some common approaches to ensure a fair split of travel rewards:

• Offsetting the Value with Other Assets: If one spouse has a large balance of miles, you can calculate the approximate cash value and compensate the other spouse with an equivalent amount in cash or other assets. For example, if 200,000 miles are worth about $2,000 in flight credit, the other spouse might receive an extra $2,000 in the divorce settlement.
• Booking Flights for the Other Spouse: Another practical method is having the account holder book flights for the other spouse using their points until a certain value or number of trips is reached. This approach allows the miles to be used without needing a direct transfer.
• Transferring Points When Allowed: Some credit card rewards programs do permit point transfers between spouses or even former spouses. If this is possible, it’s crucial to specify in the divorce judgment exactly how many points will be transferred, to which accounts, and the timing of these transfers.

A Real-World Example: Dividing Nearly One Million Airline Miles

To illustrate how this works in practice, I want to share a case we handled at Divorce661. One spouse had accumulated nearly one million airline miles over years of business travel. The airline’s policy didn’t allow a direct split of miles, which could have led to conflict and confusion.

Instead, we helped the couple calculate the value of those miles and included a provision in their divorce agreement that the miles would be used to book a set number of trips for the other spouse over time. This arrangement ensured fairness and prevented disputes down the road.

Why It’s Important to Address Travel Rewards in Divorce

Frequent flyer miles and travel perks can be worth thousands of dollars. Ignoring them could mean losing out on valuable benefits that you or your spouse rightfully earned. Taking the time to address these assets during your divorce ensures that your settlement is complete and fair.

How to Get Help

Dividing these intangible assets can be tricky, but you don’t have to do it alone. At Divorce661, we specialize in identifying all valuable assets—including miles, points, and rewards—and structuring divorce agreements that leave nothing to chance.

We’ll help you:

• Calculate the approximate value of your frequent flyer miles and travel perks
• Explore creative options for dividing or offsetting these assets
• Draft clear, enforceable divorce judgments to avoid future disputes

Final Thoughts: Don’t Overlook Travel Perks in Your Divorce

Whether you have a small stash of credit card points or hundreds of thousands of airline miles, these rewards are valuable assets that deserve attention during your divorce settlement. By understanding your options and working with experienced professionals, you can ensure a fair division that protects your interests and helps you move forward with confidence.

If you’re currently going through a divorce and have frequent flyer miles or travel benefits to divide, consider scheduling a free consultation to explore your options and get expert guidance.

“We help you go beyond the obvious and ensure every valuable asset is addressed properly in your divorce judgment, even things like miles, points, and rewards.” — Tim Blankenship, Divorce661