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 Georgia, as in other states, child custody arrangements and court orders can significantly impact financial responsibilities. Child support payments are determined based on the income of both parents, the needs of the child, and the custody arrangement, with the non-custodial parent typically making payments to the custodial parent. Additionally, the court may order one or both parents to provide health insurance for the child. When it comes to tax implications, the IRS rules state that the parent with whom the child spent the majority of nights during the tax year is entitled to claim the child as a dependent. If the child spends an equal number of nights with each parent, the IRS grants the right to claim the child to the parent with the higher AGI. However, Georgia courts may include provisions in custody orders that allow parents to alternate years for claiming the child as a dependent on their taxes, which can override the default IRS rules. It's important for parents to adhere to these court orders and IRS regulations to ensure compliance with both state and federal laws.