(I am not a lawyer, accountant, or professional of any kind. These are simply notes and thoughts from my own experience. Retain your own lawyer, CPA, etc. to help you in these matters)
There are a couple of really big subject matters when it comes to your final stipulation, and the subject of taxes is definitely one of them.
Will it be you or your ex that claims the kids on the taxes and gets the tax benefits?
Sometimes you will hear of people splitting the years. For instance, Dad claims the children on tax years ending in an even number, and Mom claims the children on tax years ending in an odd number. Or whatever. Which I personally think makes more sense if the children are spending their time equally between the two houses or if the parents really are splitting the cost of raising the children. But that is just my personal opinion.
Lots of people don't realize how much money it really takes to raise even just one child. Food, clothing, ammenities (they have to have heat, water, etc.), their portion of the roof over their heads, things that they need around the house like towels and bedding, the cost of gas to get them to where they need to go, their portion of the car that you had to buy (you think a couple without children would buy a huge van? No, this is an expense that helps in raising the kids), every single thing you buy to keep the house clean, do the laundrey, dishes, etc (you spend more on these things the more kids you have), school supplies and costs, doctors visits, home medical supplies, child proof gadgets depending on the age of your child, etc. etc. etc. That is without mentioning any toys, fun outings, special medical needs, etc. Add two kids onto your family and suddenly a trip to the movies with drinks feels more like an investment. I don't know if the court would consider all of these things, but this is the reality of what it takes to raise a kid.
I have heard of so many parents who feel they are paying too much in child support. And I'm not saying they aren't. It's just that . . . they probably aren't. When a kid lives with you full time you naturally spend more and more money on them because their living needs have to be met.
My ex is one of these that wants to pay nothing in child support.
So when we came up with a final stipulation I was considering this. I was considering the fact that he pays very little in support. And yet he wanted to claim my kid every other year on his taxes.
Note: It is my express opinion that the child tax credit is there to help people who are actually bearing the cost of raising a child. Not just so you can get a tax break for reproducing.
The IRS has specific guidelines for people who want to claim children on their taxes. These standards can help ensure that the tax break is given to the parent who is actually bearing the truer cost of raising a kid. Do your research.
Go to this page on the IRS WEBSITE and this page on the IRS Website for a bit more information.
Among other things, these links also say that if a noncustodial parent wants to claim the children as dependents, then the custodial parent has to sign a waiver form for them to do so.
One thing you need to be aware of that a lot of people miss. Tax years do not match the year you are currently in. So, if an ex is eligible to claim a kid on his taxes for tax year 2016, then he would claim that kid while doing 2016's taxes in 2017. See what I mean? So the question is are you able to claim the dependent in 2016 (and thus for the tax year 2015)? Or are you able to claim the dependent for the Tax year 2016 (and thus while you are doing your taxes in 2017)?
Get your ducks in a row and figure out what you are really putting into your stipulation.
And like I said, get a lawyer, get a cpa, these posts are just my musings of my personal experiences.
For Past Final Divorce Agreement Posts, read:
Final Divorce Agreement 6: If you don't include it, it won't matter
Final Divorce Agreement 5: Contact Information
Final Divorce Agreement 4: Arrearage
Final Divorce Agreement 3: Transportation
Final Divorce Agreement 2: Life Insurance
Final Divorce Agreement 1: Always Reread the Document
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