Dependency Exemption As A Child Support Bargaining Chip

When a couple divorces, who gets to claim the kids as tax deductions? The law says whichever party is named the custodial parent (CP) claims the exemption. However the CP has the option of waiving that exemption to allow the non-custodial parent (NCP) to claim it instead. That can be a powerful advantage when negotiating child support.

The question becomes important when the NCP makes significantly more money than the CP. The NCP will gain a larger tax break from each child than the CP will. So why would the CP give up the exemption? Because the NCP offers a boost in child support.

Just because the attorneys use New York child support software to determine what state law calculates child support should be, that doesn’t mean the parents have to accept that amount. If both parties sign an alternative support agreement, then it will supersede the amount laid out under the law.

The NCP could offer to pay a higher child support amount than calculated by the New York family law software in return for the exemption, specifically an amount greater than the tax benefit the CP would get from claiming the exemption but less than what the NCP will get. The NCP gets a big tax break. The CP gets more child support. More money is available for the child’s expenses. It’s a win-win-win situation, and the more kids involved the greater the potential impact.

Attorneys on either side who want to present this deal will need to have the figures to back it up. Using family law software New York attorneys can calculate the value of each offer, allowing both sides to see the waived exemption is in everyone’s best interest.

This is just one of the many ways EzSupport-NY simplifies family practice in the state of New York. Prepare the New York net worth statement, print out customized forms and correspondence, and file cases with a fraction of the effort as doing it manually. Use it in conjunction with our other law firm software products such as Divorce Financials or Easy Time Bill for a full suite of practice management tools for even greater benefits.