If you and your spouse are heading for a divorce, you may want to begin to think about dividing the marital estate. Under Texas law, judges typically divide community property according to what is just and right.
Generally, community property is everything you and your soon-to-be ex-spouse accumulated during your marriage. Separate property, by contrast, belongs exclusively to you or your husband or wife. When you are dividing the marital estate, do not forget to address credit card reward points.
What are credit card reward points?
Reward points are simply perks your credit card company gives you in exchange for using your card. The points may fall into one of the following three categories:
- Credit card points
- Cash-back benefits
- Airline miles
When you use your credit card to make purchases, transfer balances or pay bills, you may accumulate reward points. You may then use these points on merchandise, exclusive events or travel upgrades. Consequently, the points you accrue when using your credit card may have considerable value.
Are credit card reward points community property?
If you accrued your credit card reward points before walking down the aisle, they may be separate property. Otherwise, they are probably part of the marital estate. This may be true regardless of whose name is on the credit card, especially if either you or your spouse used the card on marital expenses.
If your credit card prohibits transferring reward points, dividing them during your divorce may be challenging. Still, if the points are community property, they must be part of your settlement negotiations.