FlyerTalk Forums - View Single Post - Miles & Points in Divorce Settlement
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Old Sep 23, 05, 12:16 pm
Join Date: Dec 2002
Location: Rochester, MN
Programs: UA GS, AA PLT, HH Diamond
Posts: 1,417
As an attorney let me offer my thoughts on this. (BTW this is not legal advice) From what I remember there are a few cases in various states that address this specific issue. Depending on the state the miles/points thing is handled differently. (Hey maybe I could write an article on this for Inside Flyer, if it hasn't been done already). There are at least two common ways this is handled. The first way is in the divorce decree the court allocates a certian % of the miles/points to the other spouce. The owning spouce then must keep that number of miles in the account at all times for the use of the other spouce. WHen the other spouce wants to use the miles/points the owning spouce must make the booking, and reduces the mileage balance accordingly. The second common way of distributing miles/points is the cash value approach. Typically, the value is determined using the purchase value of the miles that the program provides. This can be the cost of purchasing miles from the program directly by the member, or it can be the price the program sells miles to participating companies. So the value of the miles can fluctuate quite a bit depending on which calculation is used. One may argue for the $.01/mile valuation, while the other will argue for the $.10/mile valuation. It can get messy here. I have seen a third way this is done, is that the court orders the program to split the account. In this case it then falls to the program to decide how to deal with the court order, terms and conditions notwithstanding.
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