You and your ex-spouse finalized the details of your joint custody agreement for your shared kids, but did you forget something? Does your agreement cover the financial aspect of a joint custody agreement?
Kiplinger takes a deep dive into navigating child-related financial matters after divorce. Get ahead of a financial disaster that may derail your peace of mind.
Use technology to track child-care expenses
Even if your child custody agreement includes financial matters related to raising children, use technology to note and track every dollar you spend on your child. This way, you and your former partner see how much you spend individually on your child, which helps you determine if one of you takes on a financial burden that the other does not or does not know about. If you or the other parent have different income levels, it becomes especially vital to track child-care expenses.
Decide who claims your child on your taxes
Only your child’s custodial parent may claim your son or daughter on tax returns. After deciding who acts as the custodial parent for a tax year, that person must then decide whether to claim the tax credit for dependents or the child tax credit. Speak with a financial professional familiar with helping divorced parents to learn more about how taxes work with joint custody.
Do not forget about medical coverage
Should you or your ex-spouse cover your shared child on your individual health insurance policy? When deciding, think about the physician and health care facility your child prefers, which facilities and medical professionals exist in your current network and whether your child may require extra care for a unique health condition.
Remain diligent about financial matters related to your child. The right information makes all the difference.