Broker Check
Pursuit of Your Best Self Tip#8

Pursuit of Your Best Self Tip#8

April 16, 2024

The topic of claiming your children as dependents on your tax return is not an easy subject to broach. In no way do I intend to talk about the children like they are negotiation tools or bargaining chips during a divorce. Let me say this loud and clear: THEY ARE NOT! I am a staunch advocate of keeping children first and foremost.

When I was going through my divorce – and even to this day – I thought about how every decision I made affected my boys and what impact those decisions have on them now and in the long haul.

Tip #8: Consider The Right to Claim Children as Dependents On Your Tax Return

When it comes to your finances and tax implications, the ability to claim the children as dependents needs to be considered. In most cases, the parent with whom the children spend the most time may claim them as dependents. If the children spend equal time between both parents, then the parent with the highest adjusted gross income may claim them as dependents.

Sometimes in divorce settlements, the noncustodial parent may ask for the right to claim the children as dependents. If the custodial parent agrees, they may release a claim to exemption for the children. This allows the noncustodial parent to claim the children as dependents and use the child tax credit for the children if the right requirements are met. Having this option means that whether or not you are the custodial parent, it is important to explore the right to claim your children as dependents on your tax return after the divorce.

Pursuing Your Best Self

In my book, Unforeseen Exit: When You Find Yourself Facing Divorce & Suddenly Single, I tell my story of navigating an unforeseen divorce. By openly telling my story, I want to provide guidance and support to those who have found themselves in similar circumstances, so they can pursue their best self personally and financially!

For more information on how I can support you as your financial planner, schedule a discovery meeting with me today!