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Managing kids and money following a divorce

On Behalf of | May 23, 2023 | Divorce

When parents in California go through a divorce, they’re forced to face new realities in multiple areas of their lives. Not only do they have to start creating a new normal for their children, but they also begin life as single-income individuals. There are some things that parents can do to help them manage children and money following a divorce.

Creating a plan

In ideal situations, parents who go through a divorce continue working together for the good of their children. With that in mind, many divorced couples opt for a written childcare plan to navigate the challenges that arise in parenting.

Expect the unexpected

Based on studies, parents spend around $16,000 each year on their children. When creating your parenting plan, provide for emergencies and unanticipated expenses. This minimizes the likelihood of disagreements concerning which parent is responsible for things outside your child’s basic needs.

Don’t forget your taxes

Only the custodial parent can claim their children on their annual income tax returns. Based on current federal tax laws, only the parent with whom the child spends at least 51% of the year with can claim the child. Many divorced couples choose to alternate years, allowing each parent to claim their children in alternating years.

What about college?

Most parents want their children to go to college, but it’s hard for one parent to fund higher education on their own. Incorporate annual college fund contributions into your written parenting plan.

As time goes by, you may need to adjust the financial aspect of your co-parenting agreement. Be open to adapting and working with your ex for the good of your children.