FlyerTalk Forums - View Single Post - Does UA allow miles from one account to be divided up 50/50 under divorce settlement?
Old Jan 7, 2006, 10:51 pm
  #35  
itsme
 
Join Date: Jun 2004
Programs: united airlines
Posts: 4,967
Originally Posted by UA9861
Ah, thanks for the info, it puts me at ease knowing that there was no possible chance of having a joint account when our whole family signed up for MP. Now, now regrets =D

Hmm, as UAL_Rulez said, couldnt this be counted as one of the individual earned assets? =\
Most frequent flyer miles are not BIS acquired ones, but rather obtained by other means, e.g., charges to credit cards. I expect that a substantial portion of the 950,000 miles in the account of the OP's business partner were accumulated through other than flying, and the spouse may have contributed as directly to the total as the partner with the MP account by running up charges on a UA Visa, taking out a mortgage, etc. So maybe not a joint account per se, but a joint account in effect.

I think the blog entry by gleff which SanDiego1K cited is correct - "...miles aren't transferable...unlikely to be successful in actually securing a transfer of miles from one account to another...might be able to secure additional other property in lieu of the miles and points."

I don't agree, though, that valuation of miles "should be valued with relative ease because each program tells you exactly what you can expect to receive if you use a specific number of miles or points. Miles are not freely alienable, so they cannot be sold openly like stocks or bonds, with the price a matter of public record. Miles can be purchased from UA at any time for something less than $.03 per mile, but only in certain increments and not more than 25-30K per year. One can redeem miles according to a fixed schedule, does one value them at the absolute highest value they might ever take on (F on a *Alliance partner on some especially expensive route)? What discount does one apply given the black out dates, inventory limits, and other restrictions that may apply to award tickets but not revenue ones? Cash doesn't expire, but miles and certs may. Would the cost to acquire the miles be relevant, for example if 25K miles were obtained for the payment of $140 to Chase for a Platinum Visa, ought all or some of those 950K miles be valued at $.006 each? How about a discount for the threat that UA miles could become worthless, as Independence Air ones just did? Etc. The parties can agree to the value, or each side (the husband with the miles in his account, the wife who wants the miles or $ for her equitable portion of them) can argue what value should be placed on them and the court will decide it for them.

If both the husband and wife are represented by attorneys and their combined clocks are running at >$500 per hour, how long should they spend contesting the MP+ account matter? It doesn't make economic sense to spend too long at it. But dispassionate economic decision-making may be especially difficult in divorces, and in this one we have what looks like "hoarding" behavior where the miles are concerned.
itsme is offline