Some of the financial issues implicated by child custody arrangements and court orders are (1) child support payments; (2) payment for health insurance; and (3) the ability to claim the child or children as dependents for tax purposes. The Internal Revenue Service (IRS) rules dictate that the parent with whom the child spent the most nights during the tax year has the right to claim the child as a dependent. And if the child spends an equal number of nights with each parent during the tax year, the parent with the higher adjusted gross income (AGI) has the right to claim the child as a dependent. Sometimes the child custody court will order the parents to alternate years of claiming the child as a dependent.

In Delaware, as in other states, child custody arrangements can have significant financial implications for both parents. Child support payments are determined based on state guidelines that consider the income of both parents and the needs of the child. The non-custodial parent is typically required to make these payments to the custodial parent to contribute to the child's living expenses. Additionally, the court may order one or both parents to provide health insurance for the child. The cost of health insurance is often factored into the child support calculation. Regarding tax implications, the IRS rules stipulate that the parent with whom the child resides for the majority of the year has the right to claim the child as a dependent for tax purposes. If the child spends an equal amount of time with each parent, the parent with the higher adjusted gross income is entitled to the tax exemption. However, Delaware courts can order parents to alternate the years they claim the child as a dependent, which must be adhered to unless both parties agree otherwise and it is reflected in the IRS filings. It's important for parents to understand these financial responsibilities and to comply with both state and federal regulations.