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Who Gets the Points? Dividing Travel Rewards, Credit Perks, and Loyalty Programs

By Nottage and Ward on May 14, 2025

When people think about property division during divorce, they often focus on homes, investment accounts, and retirement funds. But these days, many couples have accrued valuable assets that aren’t quite so obvious, such as airline miles, hotel rewards, credit card points, and other loyalty perks.

If you’re facing divorce in Illinois, you may be wondering who gets the points. You may also wonder if courts even consider travel and financial rewards as marital property.

At Nottage and Ward, LLP, we help high-net-worth individuals navigate the full scope of asset division, including those elusive but valuable rewards programs.

Yes, Points Can Be Marital Property

Under Illinois law, any asset acquired during the marriage may be considered marital property, even if it’s not a traditional, tangible asset. That includes airline miles, hotel points, credit card rewards, and elite travel perks, especially if those benefits were earned using joint income or family spending.

The key question is how and when the points were earned. That means:

• Points earned during the marriage through joint credit card spending or shared travel may be divided as marital property.
• Points earned before the marriage or from individual accounts not used jointly may be considered separate property.
• Points obtained through employment perks might be classified differently depending on whether they were given as personal benefits or business-related tools.

Why Dividing Travel Rewards Is Complicated

Unlike real estate or stocks, loyalty points aren’t always owned in a legal sense. They’re often governed by terms of service from the issuing company. This creates complications, such as:

• Non-transferability: Many programs prohibit transferring points between people, even in a divorce.
• Subject to forfeiture: Some companies may cancel points upon account closure or change of ownership.
• Fluctuating value: The value of miles or points can change based on market conditions or program policies.
• No cash equivalent: Many loyalty points cannot be converted directly into cash, making “equal division” difficult.

Common Types of Loyalty Assets

Here are some of the most commonly encountered rewards programs that may come into play during property division:

• Credit card points
• Airline miles
• Hotel points
• Luxury travel memberships
• Retail loyalty rewards

Each of these assets comes with its own terms of service, which may restrict how points are transferred or valued. For example, a smart credit card points divorce strategy requires carefully reviewing these contracts and incorporating realistic settlement language.

Valuation and Loyalty Rewards

Valuation is one of the trickiest aspects of dividing travel rewards in an Illinois divorce. These assets don’t show up on tax returns, and their worth can vary significantly based on how they’re redeemed.

For example, 100,000 airline miles might be worth:

• $600 in domestic flights
• $1,200 in international travel
• $400 in gift card conversions

To avoid disputes, courts may look to:

• Average cash redemption value
• Online valuation resources (e.g., The Points Guy)
• Expert testimony from travel consultants or forensic accountants
• Statements from the rewards program provider

In many cases, it makes more sense for courts to negotiate an equitable offset, assigning one spouse the points in exchange for the other receiving a greater share of a different asset.

Strategic Division Options

Illinois follows the principle of equitable distribution, which means the court seeks a fair, though not necessarily equal, division of marital property. When it comes to rewards programs, there are a few common solutions.

Split the Points

Some programs allow a one-time transfer of points. If this is an option, it can be a clean and mutually satisfying solution.

Assign It to One Spouse With Value Offset

If transfer isn’t permitted, the points may be assigned to one spouse, and the other receives a larger share of another asset (e.g., bank account funds).

Use Them Up Before Finalizing the Divorce

Some couples agree to redeem and split the value of the points before the divorce is finalized.

Sellable Perks

In rare cases, certain perks (like travel vouchers or retail gift cards) may be sold or gifted to a third party to convert into cash value.

At Nottage and Ward, LLP, we help clients explore all options and advocate for creative, enforceable solutions in line with Illinois law.

Considering Tax Implications and Hidden Costs

While most loyalty points are not taxable assets, converting them to cash or redeeming them through a business account could trigger tax consequences. Additionally, redeeming luxury perks (such as hotel upgrades or first-class flights) may come with fees, blackout dates, or restrictions.

We advise clients to consider not just the theoretical value of points but the practical value and long-term benefit of keeping or giving up those perks. Sometimes, it’s better to walk away from 500,000 points if it helps secure a more favorable settlement elsewhere.

Prenuptial and Postnuptial Agreements Matter

If you’re not yet divorced but are planning to marry or update your marital agreement, it’s wise to address luxury rewards in divorce up front. A well-crafted prenup or postnup can define:

• Which rewards programs are separate vs. marital
• How future points earned will be treated
• How travel perks linked to business expenses will be handled
• Whether points can be divided or must be offset in other ways

Speak With an Experienced High-Asset Illinois Divorce Lawyer Today

If you’re facing divorce and have valuable points, perks, or travel rewards, don’t leave them on the table. At Nottage and Ward, LLP, we stay ahead of the curve. We understand the full scope of marital property, and we know how to protect what matters to you. Every point counts. Let us help you keep yours.

Our firm is experienced in high-net-worth divorce cases in Illinois, working closely with financial professionals to ensure all assets—traditional and modern—are identified, valued, and equitably divided.

Call our Chicago divorce lawyers today at (312) 332-2915 to learn more today.