Divorce - Dependents

There are many factors to clarify before you claim your child as a dependent. Generally a special rule favoring the custodial parent applies where divorced or separated parents together, provide more than half the child's support.
The custodial parent will meet the dependency support test even if she did not pay half the child's support.
The parents may arrange for the non-custodial parent to claim the child if IRS Form 8332 is signed by the custodial parent and supplied with the non-custodial parents tax return.
Form 8332 is a waiver of claiming the exemption and the exemption waiver can be used for that year only or for future years as well. Speak to your local CPA about the other criteria in claiming the child and about Form 8332.

A noncustodial parent does not lose the right to claim the child's medical expenses (health insurance, drs, dentists prescription drugs etc.) as an itemized deduction on IRS Schedule A (subject to the 10% or 7.5% AGI limitation)if both the custodial and noncustodial parent together provide more than half of the support of the child and either had custody for at least six months during the year.

Divorced parents are entitled to custody of their minor children after death of a parent who had sole custody unless a court order provides otherwise. In general, It must be proven that it is specific detriment to the child in order to remove a child from the custody of a surviving parent and place the child in the custody of a non-parent. The court makes decisions based on the best interests of the child. Because parents have superior rights to custody over all other non-parents, a different standard is used when making custody decisions between a parent and a non-parent. If a court awarded sole custody to one parent, this is not proving that it would be detrimental to the child for the other parent to have custody. Sometimes a court must choose between 2 good parents. A parent with sole custody does not have the right to give or "will" this custody to someone else. Any parent can nominate a guardian for their child in their will. If the other parent is unable or unwilling to take charge of the child after your death, the court must consider your guardianship petition. The court must still consider the child's "best interests" and may grant guardianship to a non-parent.

Not necessarily. Cohabitation may be technically illegal in your state. The IRS will follow the state law in determining whether your relationship is in violation of any state domestic law. When no local law is violated, a dependency exemption is allowed.

If the noncustodial is paying more than 50% of the child's support, there is no court order regarding the dependency exemption. The noncustodial parent gets the exemption if the parents were never married based on the dependency support test. You will probably need to fill out a multiple support form from the IRS to determine which parent actually pays more than 50%. If the parents are divorced or separated the dependency custody test applies. The parent who has custody more than 50 percent of the time is entitled to claim the exemption. The noncustodial spouse who claims the exemption will have to get Form 8332 (release of exemption) signed by the custodial spouse.

Children have the legal right to make their own choices at age 18.