Is there a standard way this works? Right now we're just splitting the dependent claim every other year but I've heard there are better ways to do it? Has anyone worked this out with their accountant or lawyer? Don't want to leave money on the table but also don't want to have drama about it every year.
Check with a CPA who does divorce/custody stuff specifically. They'll know your state's rules. Trading off every year is simple but not always optimal depending on income differences and other factors
The standard way isn't really 'standard' - it's whatever you and your ex agree on. We split it and also split childcare expenses 50/50 which made more sense than just the dependent claim
We tried the year-alternating thing and it was a nightmare to track. Finally just claimed him based on income split and split the credit. Talk to someone who knows tax law, don't just wing it
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You're better off getting an accountant involved honestly. There are strategies beyond just trading off years - dependent exemptions, childcare credits, medical expenses. Every situation is different but you're probably leaving money on the table