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Getting a Prenup? Don't Forget to Protect Your Points


You never know where life is going to take you, and that's one reason more and more couples are getting prenuptial agreements before getting married. While a prenup can be an extremely helpful document if the worst happens and it does come down to splitting your assets, it is also a very narrow document. Basically, it can only cover what's in it. This is why it's important to remember to protect often-forgotten assets like credit card points and airline miles. With the right protection in place early, an online divorce is often easier for everyone involved.

The Problem with Points and Miles

Simply put, credit card points and airline miles are rewards that you've earned with your spouse and can be spent in many ways just like cash. If you and your future spouse are planning on traveling on a regular basis after your marriage, you could end up with a significant amount of assets in points and miles. However, dividing them if things don't work out isn't always as easy as it may sound.

One reason for this is that these rewards are often held in only one person's name. For instance, if your spouse has a better credit score, he or she may qualify for higher reward rates. It would make sense to run the expenses and travel miles through that person's name, but credit card companies can be notoriously difficult to deal with when it comes to transferring these benefits.

It's also possible for one party to spend or use up all the points/miles once the divorce has been filed in an attempt to keep the other person from having them. While family court judges certainly don't look favorably on this type of behavior, the truth is that once the points are spent, there's not much to be done. You may be able to get the judge to award you a monetary amount based on the value of the benefits, but this is usually cents on the dollar.

How a Prenup Can Help

So what's the solution? Easy. Make how points and miles will be dealt with in the event of a divorce crystal clear in your prenuptial agreement. Give it its own section, and have it spelled out in black and white that these rewards will either be considered personal property based on whose name they are in or will be considered joint marital property to be divided according to a predetermined percentage.

It's important to keep in mind that while prenups are considered legally binding agreements, that doesn't mean they can't be contested in court. Having a prenuptial agreement professionally drafted and reviewed by your personal lawyer — who will be looking out for your interests only — is the best way to protect yourself and your finances. You'll also need to be fully aware of the contents of the prenup and what happens in the event of a challenge.

If you’re past the prenup stage and did not opt for one when you got married and you’ve now decided it’s time to end your relationship, online divorce is an option. It’s Over Easy provides tools and divorce kits that walk you through the entire process.

Go to this page about online divorce to learn more.