What Happens to Airline Miles, Crypto, and Reward Points in a Texas Divorce?

How Texas Courts Handle Crypto, Loyalty Points, and Frequent Flyer Miles

When most people think about dividing property in a divorce, they picture houses, cars, and bank accounts. But today, high-value digital assets and loyalty-based perks often carry just as much weight – if not more.

What happens to the Bitcoin your spouse bought five years ago? Who keeps the credit card points racked up on your joint travel account? And do airline miles earned through business trips count as marital property?

In a Texas divorce, the answer depends on how and when those assets were acquired, what value they hold, and whether the court views them as community property.

These aren’t minor details. As a Texas family law attorney, I’ve seen digital and non-traditional assets turn into major bargaining chips – and in some cases, serious sources of conflict.

Let’s break down how Texas courts view airline miles, credit card rewards, and crypto – and what that means for your divorce settlement.

Understanding Community Property in Texas Divorce

Before we can talk about who gets the crypto, points, or airline miles, we need to get clear on how property is classified in a Texas divorce.

Texas is a community property state. That means most property acquired during the marriage – regardless of whose name it’s in – is presumed to belong equally to both spouses. Unless you can prove something is separate property, it’s fair game for division.

Let’s break that down:

Important note: Separate property must be proven with clear documentation. If you can’t trace where something came from, the court will likely treat it as community.

This distinction is critical when dividing digital and loyalty-based assets. Even if a crypto wallet is in your name – or a credit card is tied to your account – if the value was earned during the marriage, the court will likely consider it shared property.

Understanding this legal framework is the first step toward protecting your share and avoiding costly surprises during settlement.

How Courts Handle Cryptocurrency in Divorce

Cryptocurrency isn’t just for tech enthusiasts anymore – it’s a regular feature in modern divorce cases. Whether it’s a few hundred dollars in a Coinbase account or six figures in a cold wallet, Texas courts treat crypto the same way they treat any other property: it must be disclosed, valued, and fairly divided.

But unlike bank accounts or stock portfolios, crypto brings some unique challenges.

1. Valuation Is Volatile

The value of Bitcoin, Ethereum, and other coins can swing dramatically – sometimes within hours. That makes it tricky to determine a fair division point. Courts typically rely on the market value as of a specific date (often the date of divorce filing or mediation), but if you’re negotiating, timing the split can be strategic.

2. Discovery Can Be Difficult

Unlike traditional assets, crypto is easy to hide if someone is motivated. Wallets don’t show up on credit reports, and if a spouse doesn’t disclose holdings, it can take legal action to uncover them. That’s why full transparency – and a lawyer who understands digital tracing – is essential.

3. Transfers Aren’t Always Simple

Depending on the wallet type and security setup, splitting crypto may require technical know-how or legal workarounds (like offsetting with other property).

What Texas courts expect:

• Full disclosure of wallet locations (cold wallets, exchanges, apps)
• A list of crypto types held (Bitcoin, altcoins, NFTs, etc.)
• Dates acquired and whether purchases were made with community or separate funds
• Documentation of transaction histories and current wallet balances

If a spouse fails to disclose or attempts to conceal crypto, the court can impose penalties, award the other spouse a greater share of assets, or in severe cases, sanction the dishonest party.

Pro Tip: If you even suspect your spouse has crypto, tell your attorney early. It’s easier to trace assets before they disappear.

Are Airline Miles and Travel Rewards Marital Property?

Frequent flyer miles and travel points may not sit in a bank account, but they can carry real financial value – especially for couples who travel often or use rewards for business.

In Texas, miles and rewards earned during the marriage are generally considered community property, just like any other marital asset. But unlike money, these perks come with terms and conditions that can complicate the division.

Key Legal Reality:

Airline miles are community property if earned during the marriage, but the court’s ability to divide them depends heavily on the airline’s rules.

So how does it work in practice?

Some loyalty programs allow direct transfer or splitting of miles between spouses. Others prohibit transfers entirely or charge hefty fees to do so. When transfers aren’t possible, Texas courts often handle it by awarding the points to one spouse and compensating the other with a cash or property offset of equal value.

Here’s how different programs typically play out:

If the miles are associated with a corporate or business travel account, the situation gets trickier. Courts may require documentation to determine if the points were earned personally or as a job benefit.

In many cases, the easiest approach is negotiation: one spouse keeps the miles, and the other receives value elsewhere. But don’t underestimate their worth – especially if you’re sitting on hundreds of thousands of miles with international value.

What About Credit Card Rewards and Cash Back Points?

Credit card rewards – whether they’re travel points, hotel stays, or plain old cash back – can easily be forgotten in a divorce. But if those points were earned during the marriage, Texas courts typically consider them community property, even if the account is in just one spouse’s name.

These assets may not always have a cash-out option, but they have real value and should be part of any property division discussion.

Common reward types subject to division:

• Cash-back balances
• Travel points or hotel credits
• Sign-up bonuses or referral bonuses earned during the marriage
• Ongoing rewards linked to joint or individual cards used during marriage

How courts handle them:

1. Split the rewards: Some programs allow a transfer between accounts, which can make it easy to divide.
2. Offset the value: If rewards can’t be split, the value is estimated and the other spouse receives a different asset to balance it out.
3. Liquidation (rare): If points can be converted into cash or gift cards, courts might order that and split the proceeds.

Even if the credit card is under one spouse’s name, the rewards can still be community property if the purchases earning them were made during the marriage.

Example:
If you earned 75,000 points on a travel credit card while married, and the value of those points is estimated at $900, the court may require that amount to be factored into the overall division of property – even if the card is yours alone.

Pro Tip: Don’t cash in or transfer points in anticipation of divorce. That can be viewed as misconduct and lead to an unequal division of assets in court.

Proving and Valuing Digital or Unusual Assets

Digital and rewards-based assets don’t come with title deeds or standard account statements, which makes them harder – but not impossible – to track and value.

In a Texas divorce, if it has value, it must be disclosed. This includes cryptocurrency, airline miles, hotel points, credit card rewards, app balances (like Venmo or PayPal), and even NFTs.

Courts depend on documentation and transparency to determine whether an asset exists, what it’s worth, and whether it’s community or separate property.

Common documentation the court may require:

• Crypto wallet addresses and transaction logs
• Exchange account statements (Coinbase, Binance, etc.)
• Screenshots or statements from loyalty program accounts
• Receipts for point-based purchases or redemptions
• Email confirmations of earned rewards or referral bonuses
• Expert valuation reports for large crypto portfolios or NFTs

If an asset’s value is disputed – or if there’s reason to believe one party is hiding assets – your attorney may bring in a forensic accountant. These experts can trace digital transactions, locate undeclared accounts, and calculate fair market value for digital assets that aren’t easily appraised.

What if the asset is tied to a business?

If one spouse owns a business that accumulates travel points, crypto, or digital royalties, the valuation can become more complex. The court may need to distinguish between personal and business benefit and determine how the rewards were used or intended to be used.

Pro Tip: Keep thorough records. If you’re trying to prove that miles or points are your separate property, you’ll need a clear paper trail – especially if they were earned before marriage or through a third party like an employer.

Negotiation vs. Litigation: Best Ways to Divide Rewards and Crypto

When digital assets or non-cash perks are involved, negotiation is almost always the smarter route. That’s because rewards and crypto aren’t always easy to split by court order, and judges may lack the technical flexibility to divide them fairly.

Most Texas courts prefer divorcing spouses to work out their own property division – especially with assets that are difficult to liquidate, transfer, or value precisely.

Benefits of negotiating outside of court:

• Flexibility: You can structure creative solutions – like one spouse keeping the airline miles in exchange for the other keeping more furniture or a cash adjustment.
• Faster resolution: Avoiding court saves time, money, and emotional stress.
• Privacy: Sensitive financial details (like crypto holdings or travel habits) stay out of the public record.

Risks of relying on the court to decide:

• Judges may assign a cash value to points or crypto based on minimal evidence, without full understanding of market volatility or transfer limitations.
• You might be awarded points or miles that you can’t actually use, forcing you to return to court later.
• Courts typically don’t divide points evenly; they award them to one party and offset the other, which may not feel fair if values were miscalculated.

Pro Tip: Use these assets as leverage. If your spouse values points or crypto more than you do, it can be a useful bargaining chip in broader property division.

FAQs about Airline Miles, Crypto, and Reward Points in Texas Divorce

Are crypto assets treated differently than stocks or retirement funds in a Texas divorce?
Not in principle. Texas courts treat crypto as community property if it was acquired during the marriage. However, crypto poses extra challenges due to volatility, privacy, and traceability.

Can a judge split airline miles or travel rewards in half?
Not usually. Because airline and hotel programs often prohibit direct splitting, judges typically award the asset to one spouse and offset the other with equivalent value elsewhere.

Do I have to disclose crypto if it’s in a private wallet?
Yes. All assets – regardless of where they’re stored – must be disclosed in your divorce inventory. Failing to do so could result in sanctions or a disproportionate award in favor of your spouse.

What if the airline miles are in my name, but were earned during the marriage?
Even if the account is yours, miles earned while married are typically considered community property. They may be split, offset, or negotiated depending on airline policy.

Can I use or redeem points while the divorce is pending?
You should avoid it. Using community property without agreement or court approval during divorce can be seen as wasteful or unfair – and may be addressed in final orders.

Are rewards from a business card treated the same way?
Possibly. If the business is marital property or the points were used for personal gain, the court may consider them community. If they’re truly business-only, it depends on the facts.

How is the value of miles or points determined in court?
Courts typically assign a dollar value based on redemption rates, program terms, or expert opinion. Some programs even provide an estimated cash value, which can help during negotiations.

Should I get a financial expert involved for crypto valuation?
Yes – especially if there’s significant value or disputed ownership. A forensic accountant can help trace transactions, verify holdings, and ensure fair division.

Call Attorney Brandi Wolfe to Protect Your Digital Assets in Divorce

From cryptocurrency to travel rewards and loyalty perks, the modern divorce involves more than just bank accounts. If you’re going through a divorce in Texas, you need someone who understands how to protect all of your assets – including the ones hiding in apps, wallets, and credit card accounts.

At the Law Office of Brandi Wolfe, we take a detailed, strategic approach to property division. Whether it’s miles, points, or Bitcoin, we’ll help ensure nothing valuable gets left off the table – or left in the hands of your ex.

Call Brandi Wolfe at (210) 571-0400 to schedule a confidential consultation and get clarity on what you really own – and what you could lose.