Frequent Flyer Miles and Travel Rewards in Arizona Divorce

How Arizona Classifies Frequent Flyer Miles in Divorce

Arizona is a community property state, meaning that most property acquired by either spouse during the marriage is presumed to be jointly owned.

This includes not only physical assets but also intangible assets—things like stock options, digital currency, and yes, travel rewards and airline miles.

Under Arizona law, if airline miles or hotel points were earned during the marriage—regardless of which spouse’s name is on the account—they are usually considered community property and subject to division during divorce. This includes:

• Miles earned from joint travel
• Rewards accrued through joint credit card spending
• Points obtained as employment perks

The only exception would be if a spouse can prove that the miles are sole and separate property, such as points earned before marriage or after separation.

Are Airline Miles and Hotel Points Considered Marital Property?

In most Arizona divorces, frequent flyer miles and hotel rewards are indeed considered marital assets if they were earned during the marriage.

This classification holds even if the miles are technically “non-transferable” under the terms and conditions of the loyalty program.

Here’s why: Arizona courts look at the value of the points, not necessarily their transferability. If the miles or points can be used to purchase flights, hotel stays, or other benefits, they have real economic value—even if they can’t be split 50/50.

Programs like:

• American Airlines AAdvantage
• Delta SkyMiles
• JetBlue TrueBlue
• Marriott Bonvoy
• Chase Ultimate Rewards
• Amex Membership Rewards

…may not allow formal transfers between divorcing spouses, but the value of the points still gets counted in the division of marital assets.

Valuing and Dividing Travel Rewards in an Arizona Divorce

Valuing these points can be tricky because travel rewards don’t have a fixed cash value. However, many attorneys and divorce mediators use a standard benchmark of points and miles to assess the value of their clients in divorce proceedings. 1 to 2 cents per point for valuation purposes. This varies depending on how and when the points are used, as well as which program they belong to.

For example, points can be transferred between spouses as part of the asset division in a divorce.

• 100,000 Delta SkyMiles can be considered as points and miles in the context of divorce negotiations. Might be worth around $1,200–$1,500.
• 200,000 Marriott Bonvoy points could equate to roughly $1,600 in hotel value.
• 50,000 Amex points may be valued at $500–$1,000, depending on the redemption options.

In some divorce agreements, the points or miles are not split directly but are instead offset by giving the other spouse something of equal value (e.g., a higher share of the bank accounts or household items). That’s because many loyalty programs either don’t allow splitting or charge transaction fees for transferring points.

How Airline and Credit Card Policies Affect Transfers

Each airline and credit card issuer has its own rules regarding the transfer of miles and points. These terms and conditions are key to understanding your options during a divorce.

For example:

• American Airlines does not allow transfers upon divorce unless through its buy or gift program, which charges a fee.
• Delta SkyMiles cannot be transferred, but can be used by the account holder to book flights for another person.
• Chase and Amex allow authorized users to redeem points, but don’t always allow full transfers.
• Marriott Bonvoy allows up to 100,000 points to be transferred annually to another member with a simple form.

It’s important to understand each program’s policy before finalizing your divorce settlement, as this can influence whether miles are split, redeemed, or offset by other assets.

Real-World Example: Dividing Miles Between Spouses

Let’s say John and Sara have been married for 12 years and are getting divorced in Phoenix. John frequently traveled for work and earned over 300,000 Delta SkyMiles during the marriage. He also used their joint Amex credit card to rack up 150,000 Membership Rewards points, which were used for family vacations.

Sara argues that because the miles and points were accumulated during the marriage, they should be considered marital assets. John counters that the miles are in his name and non-transferable.

Their attorneys propose a compromise:

• Sara keeps the Amex Membership Rewards, as she is the primary account holder.
• John keeps the Delta SkyMiles but agrees to book two round-trip flights for Sara and their child each year for the next three years.
• Any difference in value is offset in the division of bank accounts and furniture.

This kind of negotiated agreement helps avoid fees, preserves the value of the points, and avoids ongoing conflict.

Negotiating the Division of Intangible Assets

Because frequent flyer miles and hotel rewards are intangible, dividing them fairly often comes down to creative negotiation. This is where an experienced divorce attorney can make a major difference.

At the Law Offices of Daniel Hutto, we regularly work with clients to create customized agreements that consider:

• The current value of the points or miles
• Transferability and airline policies
• Whether one spouse needs travel benefits (for example, to visit children after relocation)
• Offsetting value with other marital property

In some cases, one spouse may buy out the other’s interest in the rewards or agree to use the miles for the other spouse’s benefit. These agreements are then included in the divorce decree, which should clearly outline the division of points and miles or property settlement agreement.

When Travel Points Are Tied to Business or Deferred Compensation

Frequent flyer miles and travel rewards may also be linked to business travel or deferred compensation plans, especially for high-income earners.

If one spouse accrues points through employer-paid travel, those miles may still be considered marital if used for personal benefit or combined with joint assets.

However, some Arizona courts may treat miles earned as part of a business account as separate, especially if they are clearly not for personal use.

In these situations, your attorney may need to work with a financial expert to:

• Separate business-related travel perks from marital ones
• Calculate the value for deferred perks or bonuses
• Propose a buyout or offset during settlement

This level of analysis is something the legal team at the Law Offices of Daniel Hutto regularly assists with, especially in high-net-worth or executive divorces.

Mediation and Alternative Resolutions for Reward Points

Because of the unique and often non-transferable nature of miles and points, these issues are well-suited for mediation rather than courtroom litigation.

Mediation allows couples to:

• Get creative with solutions (like flight sharing or reimbursement)
• Avoid legal fees related to disputes over valuation
• Retain more control over how miles and points are divided

A skilled family law attorney like Daniel Hutto can guide you through this process and make sure you don’t lose sight of intangible assets during divorce negotiations.

FAQs About Travel Rewards and Divorce in Arizona

⑴ Are frequent flyer miles considered community property in Arizona, similar to other assets, such as credit card rewards?

Yes, if earned during the marriage, they are typically considered marital property and can be classified as tangible assets.

⑵ Can I split airline miles with my spouse in a divorce?

Maybe. Some programs allow transfers, while others don’t. You may need to agree to alternative resolutions.

⑶ What if the miles are in only one spouse’s name and are considered transferable assets in a divorce?

That doesn’t prevent them from being considered marital if earned during the marriage.

⑷ Can we just cash out the points?

Only some programs allow that, and often at a reduced value. Others must be used or transferred creatively.

⑸ Is it worth negotiating over miles, or should I just walk away?

It depends on the value. In high-asset divorces, the accumulated points could be worth thousands.

⑹ What if the rewards were earned from a business trip?

Business-related miles may still be partially marital if used for personal purposes.

Dividing frequent flyer miles and travel rewards in an Arizona divorce is not as simple as splitting a bank account. The rules vary by program, making it difficult to determine the value, and spouses often underestimate the worth of these intangible assets. That’s why working with an experienced attorney matters.

At the Law Offices of Daniel Hutto, we understand the challenges of equitable asset division, especially in divorces involving rewards points, travel perks, and complex property holdings. Whether you’re negotiating a peaceful agreement or preparing for court, we can help you protect your rights and ensure a fair outcome.

We offer free consultations, work closely with a divorce lawyer and financial professionals when needed, and know how to divide the points effectively to negotiate creative solutions that align with your needs.

Call us today at 602 536-7878 or reach out through our secure online contact form. Let’s make sure no valuable asset is left on the table.