In Ontario, loyalty rewards like Aeroplan, Air Miles, and credit card points have a monetary value and must be included in your Net Family Property calculation. Spouses must determine the points balance on the date of separation, and the total fee to file for divorce at the Superior Court of Justice is $669 CAD (with $224 CAD paid to start the application).
When a couple decides to separate, they usually focus on dividing the big-ticket items like the family home, pensions, and shared bank accounts. 📍 However, many Canadians overlook highly valuable digital assets: frequent flyer miles and credit card reward points. Over the course of a marriage, families can accumulate hundreds of thousands of Aeroplan or PC Optimum points, which often translate to thousands of dollars in travel or merchandise value.
Under the Ontario Family Law Act, property is defined very broadly to include almost any asset of value. This means that your travel rewards and cashback balances are legally considered property and are subject to the equalization process. Navigating the valuation of these points can be tricky, so it is often wise to consult a local family lawyer from our directory to ensure you are receiving a fair settlement.
Step-by-Step Process in Ontario
Whether you are finalising a separation agreement in Toronto, London, or Windsor, the method for dividing loyalty points remains consistent across the province. 📄 Because airlines and credit card companies have their own internal policies, you must follow specific steps to properly account for these assets during your equalization calculation.
Step 1: Freezing and Recording Balances
The very first step is to log into all your loyalty programs and download the statements that show the exact point balance on your date of separation. It is highly recommended that neither spouse redeems or transfers any points after the separation date until a formal agreement is reached, as this can be viewed as depleting family assets.
Step 2: Checking Transfer Policies
Next, you must review the terms and conditions of the specific loyalty program. Some programs, like Aeroplan, allow members to transfer points to another account for a fee. 💳 If a transfer is allowed and both spouses agree, you can physically split the points in half, dividing the transfer fees equally.
Step 3: Calculating the Cash Value
If the program strictly prohibits point transfers, or if it is too expensive to do so, you must calculate the cash equivalent of the points. For example, if 100,000 Air Miles are worth roughly $1,000 CAD in flights, that amount must be added to the Net Family Property of the spouse who holds the account. That spouse will then compensate the other through the overall equalization payment.
Step 4: Formalising the Separation Agreement
Once you have agreed on the value of the points, this detail should be explicitly written into your separation agreement. Properly documenting the division of credit card rewards ensures that there are no future disputes if an account is suddenly closed or devalued. You can then proceed to file your final paperwork at the Superior Court of Justice.
How Much Does it Cost in Ontario?
Dividing loyalty points usually incurs some hidden administrative costs, depending on how you choose to settle them. Here are typical expenses in CAD:
| Expense Type | Estimated Cost (CAD) |
|---|---|
| Aeroplan Transfer Fee | Typically $0.02 CAD per point |
| Credit Card Joint Account Separation | Often free, but requires paying off the balance |
| Financial Appraiser (for complex rewards) | $200 – $500 |
| Superior Court Divorce Fees (Total) | $669 CAD ($224 to start) |
Because transferring points directly can sometimes cost more than the points are worth, many couples simply choose to offset the cash value against other assets like furniture or a shared vehicle.
How Long Does the Process Take?
Gathering statements for credit card points and frequent flyer miles usually only takes a few days. ⏱ However, negotiating their value and formalising the overall separation agreement typically takes between 3 to 6 months in Ontario. If a formal transfer is requested from an airline, their customer service department may take 2 to 4 weeks to process the transaction.
Frequently Asked Questions (FAQ)
Are credit card cashback rewards divided in a divorce?
Yes. Any accumulated cashback on a credit card as of the date of separation is considered a financial asset and must be disclosed on your Form 13.1 Financial Statement.
What if my spouse spent all the Aeroplan points after we separated?
If a spouse intentionally depletes assets after the date of separation, the court can still add the value of those spent points back into their Net Family Property, meaning they will have to compensate you financially for your share.
How do we value points that fluctuate in worth?
Valuing points can be subjective, but lawyers generally look at the average redemption value for travel or gift cards. For example, if a point is generally worth 1.5 cents CAD, that benchmark is used for the equalization calculation.
Do we have to split points earned before we got married?
Generally, you only share the growth of the asset during the marriage. You would take the point balance on the date of separation and subtract the point balance you had on the date of marriage to find the divisible amount.
Can the Superior Court of Justice force an airline to split our points?
No, the court does not have jurisdiction over private airline terms of service. The court will simply order the spouse who holds the account to pay the cash equivalent value to the other spouse through equalization.
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