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 Montana, financial considerations related to child custody include child support payments, healthcare costs, and tax implications. Child support is determined based on state guidelines that consider the income of both parents and the needs of the child. The court may order one or both parents to provide health insurance for the child. Regarding tax deductions, the IRS typically allows the custodial parent—the one with whom the child spends the majority of nights—to claim the child as a dependent. If the child's time is split equally, the parent with the higher AGI may claim the dependency exemption. However, Montana courts can stipulate in the custody order that parents alternate the right to claim the child on their taxes, regardless of where the child spends more time. It's important for parents to adhere to the specific terms outlined in their custody agreement and court orders, and they may need to consult with an attorney to navigate these financial obligations properly.