For divorced or separated parents the consideration of where a child primarily resides can be an important issue at tax time. That, however, is not the only time that residential placement can have a financial impact. Consider the issue of student aid and student loans.
Different loan programs examine residential placement to determine which parent's financial information should be reported. Some financial aid programs require both parents to provide financial information. Others do not. For example, many students apply for aid through the Free Application for Federal Student Aid (FAFSA) program. Pursuant to FASFA, the financial aid form should include information on the parent with whom the child resided the most over the last year. If the child resided equally with both parents, it requires the financial information from the parent who provided the most financial support over the past year.
Whatever the reporting requirements are, it makes sense for parents to work together to maximize the chances to getting aid. Find out early what forms need to be filled out, by whom and with what information. If there is a residency requirement, figure out what it is and whether it works for your family. Working collaboratively could make the difference in whether your child is eligible for finical aid programs or not.
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