Even airline miles can go through property division in Kentucky

When divorcing spouses go to war over property, it is not just the house, the car or even the couch that are being fought over. One asset that may go overlooked during property division, but is often highly coveted, is airline miles or other rewards programs. All the years of family vacations or credit card purchases mean that the accumulated rewards points could be very valuable indeed.

With that in mind, Kentucky spouses may wonder how rewards points -- whether in the form of airline miles or credit card rewards -- are handled after a divorce. First of all, it helps to review the terms of the program itself. Some programs contain language stating that the rewards cannot be transferred in a divorce. When this happens, some spouses may choose to determine the value of the points and then offset it with something equally valuable in the divorce settlement.

That being said, valuing points for rewards programs is not always easy. It may be necessary to be proactive in one's research. For example, in the case of airline miles, it may be necessary to convert the miles into a "trip," and estimate the worth of that trip accordingly. This can help ensure that the valuation is appropriate.

A second option, if permitted by the airline or credit card company that issued the points, is for those points to be split into two different accounts, so that each spouse retains a share of some of the points following the divorce. However, there may be fees associated with such a transfer.

Property division is rarely easy. Both spouses have emotional and financial ties to the marital property that can be complicated to sort through. Keep in mind that Kentucky is an equitable division state, and that property in Kentucky may not be divided in a strict 50/50 fashion. In the end, spouses may be able to negotiate a divorce settlement that accounts for a fair division of all their assets.