In the state of Texas, joint assets are divided equally in a divorce. Therefore, you could potentially lose half of the funds in a joint bank account or half of the equity accrued in a marital home. In some cases, you could also be at risk of losing credit card points that you earned while you and your spouse were still together.
Joint vs. separate property
The first question that needs to be asked is whether the credit card points should be classified as joint or separate property. It is likely that the points would be considered a joint asset if the account that generated them was opened during the course of the marriage.
This would likely be true even if the account was solely in your name. However, they would likely be considered separate property if the account was in your name and was created before the marriage became official. Of course, if the points were commingled in any way, they might lose this status.
Are the points covered in a prenuptial agreement?
It may be possible to bypass state property distribution rules by creating a prenuptial agreement. It may also be possible to create a custom marriage agreement after a union becomes official. Either way, you might be able to retain ownership of credit card points, a car or any other asset that would otherwise be divided in a 50/50 manner after your marriage ended.
The points could be used as a bargaining chip
Say that you wanted to keep all the credit card points that had been accrued during a marriage, and your spouse really wanted to retain ownership of a furniture set or a piece of art. In such a scenario, you could agree to trade the fancy couch or artwork for the credit card points.
An experienced divorce attorney can review a prenuptial agreement’s terms and take other steps to negotiate a favorable outcome on your behalf. Legal counsel may also review any deal that was reached through mediation to ensure it benefits you in the long run.