Children’s Direct Expenses as Part of Support

When considering child support in divorce, there is often the need to determine how children's direct expenses will be covered.

Such expenses may include: clothes, childcare, healthcare, education, extracurricular activities, cell phones, auto expenses, college costs, and many others

Strive for a clear outline on what expenses will be shared directly (not built into other regular payments) and how they are to be shared (by what percentage)

Plan for a durable agreement as expenses for children will change as they age

Three Main Methods for Sharing Direct Expenses

Option 1: Reimbursement Method for Children’s Direct Expenses. one parent initially incurs the expense on behalf of the children, and the other parent reimburses their share of the expense afterward

• Requires time and effort from both parents
• Disagreements may arise over the allocation of expenses, the reimbursement amount, or the timeliness of payments
• Clear and open communication between the parents is essential
• Apps available for managing this

Option 2: Joint Checking Account for Children’s Direct Expenses. a practical approach involving the establishment of a joint checking account specifically designated for covering children's expenses

• Centralized and transparent
• Both parents have full access to the account, allowing them to deposit funds, monitor transactions, and track expenses
• Fosters trust and accountability, reducing the likelihood of misunderstandings or disputes
• Adapt budget over time and continue to adjust for income changes

Option 3: Mom Pays/Dad Pays Method for Children’s Direct Expenses. a structured approach used by divorced parents to allocate responsibility for specific expenses between them

• Allows for a tailored allocation of financial responsibilities based on each parent's financial means, contributions, and the children's needs
• Reduces dependency on one parent for all financial support
• May cause one parent to bear a disproportionate share of the financial burden
• If expenses change over time, the allocation to one party may feel inequitable

Hybrid Options -- the three can be used for different expenses

Children’s expenses will change over time – have a durable plan that can adapt