2 financial issues tied to custody arrangements after divorce

 Posted on July 08, 2022 in Child Custody

You probably realize that your divorce will have a lasting impact on your financial circumstances. Not only will the official end of your marriage usually result in the division of your property, but it will also require that you split your responsibilities towards your children with your ex.

The allocation of parental rights and responsibilities in Illinois divorce is one of the most important parts of the process when there are children in the family. The courts look over the family circumstances and try to make choices that will be in the best interests of the children in the family.

Those decisions may ultimately have some financial implications for the parents.

The division of parenting time influences child support

The more disparity there is in the parenting time each parent receives, the greater the likelihood that one of them will have to make substantial child support payments to the other. If the two of you divide parenting time evenly, there will be less obligation for child support.

Shared custody can affect taxes

You may not think about it until April arrives, but your custody arrangements can have an impact on what you pay in income taxes. There are tax credits available for parents, but only one of the two of you can claim the tax credit in any given year. You will typically allocate that right to one parent or the other in your parenting plan. Sometimes, parents agree to alternate the years in which they claim the tax credit for their children.

Keeping the big picture in mind can help those negotiating custody arrangements for their divorce.