The New Year & Co-Parenting Finances: What the Law Requires and What to Review

A celebratory season, the new year is also an ideal time for co-parents to review their financial obligations and ensure they remain compliant with their legal agreements. You’ce gotten through the holidays as co-parents and now it’s time to embark on a new adventure. 

With so much that can happen in a year, it’s important to be mindful of and review changes in income, school expenses, or family circumstances, as these can all impact how financial responsibilities should be handled. Ignoring those changes can lead to conflict or legal issues down the road. Trust us. 

Because the idea of “reviewing finances,” is a little abstract, we’ve taken the time to outline what co-parents need to consider as the new year unfolds. It’s important to remember, your NH family law practice can assist you with this process, if you need it. 

Review Your Court Orders and Parenting Agreement

We’ll tell you that many co-parents rely on memory rather than reviewing the actual terms of their custody or separation agreement. The new year is a good time to revisit court-ordered obligations related to child support, shared expenses, health insurance, extracurricular activities, and education costs. Remember, these orders are legally binding, and informal changes, even if agreed upon verbally, may not be enforceable.

Understand What Child Support Does (and does not!) Cover

While child support typically covers basic living expenses, many agreements require parents to share additional costs such as childcare, medical expenses, tutoring, or extracurricular activities. Identifying which expenses must be shared, and how reimbursement should occur, can prevent disputes and ensure compliance with the order.

Address Changes in Income or Financial Circumstances ASAP. 

If one parent experiences a significant change in income, employment, or financial responsibilities, child support obligations do not automatically adjust. It’s the job of the co-parents to alert the court in order to make any necessary amendments to the parenting or child support plan. In most cases, a formal modification through the court is required. Waiting too long to address changes can result in arrears or enforcement actions. Both are best avoided. 

Clarify Tax-Related Rights and Responsibilities

Court orders often specify which parent may claim a child as a dependent for tax purposes, as well as how tax credits or deductions are allocated. Misunderstandings in this area can lead to costly tax issues and potential violations of court orders. We urge you to review these terms before tax season begins. 

Keep Financial Communication Documented and Child-Focused

From a legal standpoint, clear documentation matters. Communicating about expenses in writing and following the procedures outlined in your agreement can help protect both parents if disputes arise. Commit to good record keeping, including saving receipts. Courts consistently prioritize the child’s best interests, and cooperative financial planning supports that standard.

Start the Year Informed and Protected

The beginning of the year is a smart time to confirm that your co-parenting finances align with your legal obligations. If circumstances have changed or agreements need clarification or modification, consulting with your NH family law attorney can help you move forward with confidence and avoid unnecessary legal complications.

While you’re reviewing your finances, take a moment to store our number, 603-945-1111, in your phone under “lawyer.” We hope you won’t need us, but it’s always better to be safe than sorry. For all your NH family law needs, questions, or concerns, don’t hesitate to contact us anytime!