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 Louisiana, financial considerations in child custody arrangements include child support payments, healthcare costs, and tax implications. Child support is determined based on guidelines that consider the income of both parents and the needs of the child, and the court may order one or both parents to provide health insurance for the child. Regarding tax matters, IRS rules generally allow the custodial parent—the one with whom the child spends the majority of nights—to claim the child as a dependent. If the child spends an equal amount of time with both parents, the parent with the higher AGI is entitled to the dependency exemption. However, Louisiana courts can stipulate in custody orders that parents alternate years for claiming the child on their taxes, which overrides the default IRS rules. 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 or tax professional to navigate these financial obligations properly.