The custodial parent is the one who gets to take the dependency exemption and other tax-related benefits in regard to dependent children when there is a divorce. IRS rules override the divorce settlement. The custodial parent is determined strictly on a facts basis, using the nights away criteria. The parent with whom the child spends over half the nights in the year is the custodial parent. This topic is discussed in more detail in my blog entry. www.taxconnections.com/taxblog/who-gets-the-kids/