There is often a question who will have the tax deductions for the children following a divorce of parents. The short answer is the parent who has the child or children the majority of the time, that being more than 50 percent of the time. However, the parties may agree to divide the deductions as a means of settling their marital estate and in doing so the Internal Revenue Service requires that a form be completed. That form is Form 8332. That form may be obtained at WWW.IRS.GOV. If the Final Decree of Divorce is silent as to who can claim the children then the parent who has the children the majority of the time is recognized as the proper party by the Internal Revenue Service. There are certain instances where it is favorable for a party to negotiate away their right to claim the children as deductions. One example would be where a stay-at-home parent has no income and therefore could not use the deduction, while the other parent may be a high income earner and would benefit by the deduction reducing their total taxable income. In any event, a rough calculation as to the value of the tax deductions should be done before you give away this valuable asset.