How Do Illinois Courts Divide Frequent Flyer Miles and Credit Card Points?

When couples go through a divorce in Illinois, the court’s goal is to divide the marital estate equitably. While most people think of real estate, bank accounts, and retirement funds as marital assets, many are surprised to learn that credit card rewards points and frequent flyer miles can also be part of the marital estate. Although these rewards exist in a digital format, Illinois courts recognize that they have real, measurable value and therefore can be subject to division.

Are Rewards Points Considered Property in an Illinois Divorce?

Yes. Credit card points and frequent flyer miles (“rewards points”) are considered a form of property because they can be redeemed for goods, services, travel, or even cash equivalents. Many programs allow redemptions for:

• Cash back
• Statement credits
• Airline tickets
• Hotel stays
• Car rentals

Because these benefits have tangible, monetary value, they may be included in the marital estate for purposes of equitable distribution.

Does It Matter if the Rewards Are Only in My Name?

No, under 750 ILCS 5/503, all property acquired during the marriage, regardless of how it is titled, is presumed to be marital property unless a specific exception applies. Just as debts acquired during the marriage belong to both spouses, rewards points earned during the marriage are also presumed to belong to the marital estate.

That means:

• Rewards points earned during the marriage
• Rewards tied to a card in only one spouse’s name
• Airline miles credited to one spouse’s personal account

…are still typically considered marital property subject to division.

Are There Exceptions?

Yes. Rewards points may be considered non-marital property if they fall into one of the statutory exceptions, such as:

• Points earned from a gift
• Points acquired through an inheritance
• Points excluded under a valid prenuptial or postnuptial agreement

Absent these circumstances, rewards accrued during the marriage will be treated as marital assets.

How Do Illinois Courts Value Rewards Points?

Valuing rewards points can be tricky because they do not have a fixed, official cash value. Their worth often depends on how they are redeemed. Some general guidelines include:

• A common rule of thumb: approximately one cent per point or mile
• Valuing points based on the cost of actual or anticipated travel
• Considering enhanced or promotional redemption opportunities

Because the value fluctuates by program and usage, courts and attorneys often rely on approximate or negotiated values rather than precise appraisals.

How Are Rewards Points Divided?

Illinois follows the principle of equitable distribution, meaning the division of marital assets must be fair, but not necessarily equal. Couples have several options when addressing rewards points in a divorce:

• Divide the points directly, if the issuing company permits transfers
• Award the points to one spouse and offset the value with other marital assets
• Use or redeem the points as part of the settlement
• Sell or liquidate points, where permitted

It is also important to check with the specific rewards program. Some airlines, credit card companies, and loyalty programs restrict transfers or joint use, which may affect how the points can be allocated.

Conclusion

Frequent flyer miles and credit card rewards points are valuable assets that should not be overlooked in an Illinois divorce. Although they may be challenging to value and divide, they are treated like other forms of marital property and can be addressed in a marital settlement agreement.

If you’re navigating a divorce and have accumulated rewards points, it’s wise to consult with an attorney who understands how to properly evaluate and divide these unconventional but important assets.