If you’re trying to save on money during a divorce, one of the best ways to do so is to negotiate splitting childcare costs. In divorce cases, the non-custodial parent will have 88 days with their child every year. However, this isn’t always the case. Below are some of the many ways you can negotiate splitting childcare costs during a divorce.
Negotiate Between Parents
The first thing to consider is the cost of daycare and how you want it divided between the two parents. Some couples opt to split in half, while others may choose one parent to pay all the costs or even divide them according to their incomes. If money is tight, you can also seek help from your state or local government to get assistance with childcare costs.
In addition, you can also negotiate a lower rate for daycare. Some centers offer discounts to families who are going through separation or divorce. You can also look into whether you qualify for any government-funded subsidies, such as the Child Tax Credit or Earned Income Tax Credit (EITC).
Discuss Tax Benefits
Some families may be eligible for tax credits and deductions if they are using the money for childcare costs. This money can go a long way in reducing the overall cost of daycare, so it’s important to discuss any potential tax benefits with your partner. Keep in mind that child support has to be paid until the child is 21 years old.
If you’re planning on paying child support, you might be able to use some of the money to pay for daycare costs. This can help make paying child support easier since it’s money that is already allocated toward childcare costs. In addition, ask your lawyer about tax credits and deductions you may be eligible for, such as the Child Tax Credit or Earned Income Tax Credit (EITC).
Plan Ahead & Set Up a Shared Account
When it comes to money matters, it is always best to plan ahead. Make sure that both parents have access to money for childcare costs in case of emergency situations. For instance, according to the National Institute of Dental and Craniofacial Research, 23% of children between 2 and 11 years old have never been to the dentist. If your child must now visit the dentist suddenly, money for the trip could come from a shared account.
While you won’t need a shared account for your regular finances, consider negotiating and setting up a separate one to cover shared childcare costs. This money can also be used for other things such as extracurricular activities, summer camps, and school trips.
Keep Negotiations Amicable
Splitting childcare costs during a divorce isn’t always easy but it is possible. Negotiate between both parents to come up with an agreement that works for both of you. Try to keep your negotiations amicable and remember that money isn’t the only factor when it comes to making decisions about a child’s well-being.
Even if money is tight, make sure that you are both still able to provide for your child’s needs while keeping them safe and healthy. With some positive communication, negotiation, and planning, you should be able to come up with an agreement that works for both parties. The last thing you want to do is create an adversarial relationship with your former partner.
By taking the time to negotiate splitting childcare costs during a divorce, you’ll be able to save money and make sure your child’s needs are met. Talk to your ex-spouse about what options may work for both of you.
