In a divorce, assets are distributed based on the state laws. For couples who travel often, airline miles accumulate fast and can be a valuable asset. Most airlines have their own frequent flier incentive program. Although the concept is the same, the value of the points may differ. To divide airline miles in a divorce, you will need to assign a value to the miles.
Instructions
1. Verify if the airline miles are marital assets. Review your frequent flier accounts to see if the miles were accumulated during the marriage. Miles that were earned while you were married are subject to division. If you do not have records of the accounts, contact the airline to request copies.
2. Check to see if the airline assigns a cash value to the miles. Even though the airline industry strives to maintain a fair-value system for value of miles, the exact value of a mile will vary among carriers. Most ordinary airline miles have no cash value; however, the United Airlines Mileage Plus program provides a cash value as an alternative to flier miles. Several airlines also allow miles to be traded for merchandise or gift cards.
3. Determine the value by dividing miles into trips. Refer to your airline's program to obtain specific information on how many points are needed to take a certain trip. There typically are two different levels for cashing in points for flight tickets: low-mile and high-mile. Low-mile flights are usually in limited availability. The retail value depends on how you choose to fly and where your destination is.
4. Create an agreement signed and notarized by you and your spouse. The agreement should state the exact amount of airline miles each person is awarded. Include the document in your divorce paperwork to be filed.
5. Contact the airline to transfer shared miles into separate accounts. Most airlines will allow you to give away or transfer the miles to a friend or relative. Once the judge approves your division agreement, transfer the miles as agreed.
2. Check to see if the airline assigns a cash value to the miles. Even though the airline industry strives to maintain a fair-value system for value of miles, the exact value of a mile will vary among carriers. Most ordinary airline miles have no cash value; however, the United Airlines Mileage Plus program provides a cash value as an alternative to flier miles. Several airlines also allow miles to be traded for merchandise or gift cards.
3. Determine the value by dividing miles into trips. Refer to your airline's program to obtain specific information on how many points are needed to take a certain trip. There typically are two different levels for cashing in points for flight tickets: low-mile and high-mile. Low-mile flights are usually in limited availability. The retail value depends on how you choose to fly and where your destination is.
4. Create an agreement signed and notarized by you and your spouse. The agreement should state the exact amount of airline miles each person is awarded. Include the document in your divorce paperwork to be filed.
5. Contact the airline to transfer shared miles into separate accounts. Most airlines will allow you to give away or transfer the miles to a friend or relative. Once the judge approves your division agreement, transfer the miles as agreed.
References
* Smarter Travel: What are Frequent Flier Miles Worth?
* Inside Flyer: You Can't Always Take Them With You
* Smarter Travel: Frequent Flyer Miles
* MSN Money: How to Cash in on Your Frequent-Traveler Miles
* Inside Flyer: You Can't Always Take Them With You
* Smarter Travel: Frequent Flyer Miles
* MSN Money: How to Cash in on Your Frequent-Traveler Miles