When handling divorce cases, the division of marital assets is a common problem that needs a resolution. New York is an equitable distribution state, which means a marital asset is any right or entitlement accumulated by either party during their marriage. The one exception to this rule is any gift or inheritance received by either party. For a more in-depth discussion regarding the distinction between marital and separate property, consult with an experienced equitable distribution attorney.
Credit Card Rewards Can Impact Equitable Distribution
An often-overlooked type of marital asset is credit card rewards. With the proliferation of credit cards offering rewards for their use, it is very common for parties to accumulate some type of reward during their marriage.
These rewards can take the form of:
- airline miles;
- hotel points;
- manufacturer rewards points; and/or
- cash back.
The use of these rewards can vary but, often, there is a system in place that allows the accumulated points to be traded in for valuable goods or services. The value of these accumulated rewards should never be underestimated or ignored. It is important to gather copies of credit card statements that reflect the status of any rewards programs and the amount of previously collected points.
Some credit card companies allow for the transfer of accumulated rewards points to other members of the household, particularly in the case of a divorce. Other credit cards, however, do not permit a transfer of any kind. In such cases, it may be necessary to come up with more creative ways for the parties to divide or share the accumulated rewards. For example, if all the points are in one party’s name, there can be a determination of how many points each party is entitled to for future use, and agree that the person who has the account in their name will execute the transaction for the other party.
About the Author
Since 2005, Lloyd C. Rosen, Esq. has been an associate attorney at Wisselman, Harounian & Associates. Mr. Rosen is a compassionate family law attorney who advocates for clients on a wide variety of matters. Besides appearing in Family and Supreme Court, he has aggressively and successfully represented clients before the Appellate Division, Second Department in New York City. If you and your spouse are searching for an attorney who can successfully handle equitable distribution of your assets, look no further.
Call our firm today at (516) 773-8300 or contact us online to schedule your free initial consultation with Mr. Rosen.