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 Utah, child custody arrangements and court orders often address financial responsibilities such as child support payments, healthcare costs, and tax implications. Child support is determined based on the income of both parents and the needs of the child, and it is intended to cover the child's living expenses. The court may also order one or both parents to provide health insurance for the child. Regarding tax purposes, the IRS rules state that the custodial parent, defined as the parent with whom the child spent the most nights during the tax year, is typically entitled to claim the child as a dependent. If the child spends an equal number of nights with each parent, the parent with the higher AGI is granted the right to claim the child. However, Utah courts can order parents to alternate the years they claim the child on their taxes. It's important for parents to adhere to these regulations and any specific court orders to avoid legal complications.