Child support gets most of the attention, but it's actually one piece of a longer financial picture. Uncovered medical expenses, extracurricular costs, school fees, summer-camp costs, and tax dependency all come up regularly, and the parenting plan is where the rules for splitting them get written down.
Most states calculate basic child support using a statutory formula based on parental income and overnights — that worksheet is usually filed separately from the parenting plan but referenced in it. The plan itself covers the things the formula doesn't: uncovered medical (co-pays, deductibles, orthodontics), extracurricular costs (sports leagues, music lessons, summer camp), school fees, and tax dependency (which parent claims the kids).
Most plans split uncovered medical and extracurricular costs either 50/50 or pro-rata to income. Pro-rata is more equitable when incomes differ significantly — if Parent A earns 70% of combined parental income, they cover 70% of the uncovered cost. Tax dependency is usually alternated annually for one child or split if there are multiple (Parent A claims even years for the older child, Parent B claims even years for the younger child, etc.). College expenses are addressed in some plans (especially for older kids) but more often left to a separate agreement.
When you draft this section of your parenting plan, make sure it covers each of these points. Skipping any of them is the most common reason this clause becomes a source of conflict later.
Start with the custody schedule — the foundation every other section builds on. Kidtime’s free wizard covers it in minutes.
Child support is usually calculated by a state-mandated formula based on each parent's income and the number of overnights with each parent. The formula produces a monthly support amount — that's typically filed as a separate worksheet and referenced in the parenting plan rather than re-derived in it. The parenting plan covers everything child support doesn't: uncovered medical, extracurriculars, school fees, etc.
When incomes are similar, 50/50 is simpler and works fine. When incomes differ significantly, pro-rata to income (each parent covers their share of combined parental income) is more equitable and is the formula most states use for the basic child-support calculation. Plans often use 50/50 for small day-to-day costs and pro-rata for larger ones (medical, camp, lessons).
The IRS default is the parent with whom the child lived for the majority of the year, but parents can agree otherwise via Form 8332 (Release of Claim to Exemption). Most parenting plans alternate the claim annually for one child, or split among multiple kids (Parent A claims the older, Parent B claims the younger, switch annually). The plan should specify the rule and reference Form 8332 — without it, the IRS sometimes flags returns from both parents claiming the same dependent.
Anything the insurance doesn't cover: co-pays, deductibles, orthodontics, prescription costs, specialists not in network, mental-health care that exceeds annual limits, emergency-room visits where the deductible kicks in. The plan should define a notification process — Parent A sends the bill to Parent B within X days of incurring it; Parent B pays their share within Y days of receipt. Without that process, uncovered-medical expenses become a bookkeeping fight.
Right of first refusal (sometimes called "first right of refusal custody") is a clause that says if a parent can't be with the kids for more than X hours during their parenting time, the other parent gets the option before a babysitter, grandparent, or daycare does.
Decision-making authority is the section of the parenting plan that says who decides what — medical care, school choice, religious upbringing, mental health treatment, extracurriculars. This is what "legal custody" actually means.
How and how often coparents communicate — and what they communicate about — is one of the most-fought-over parts of any parenting plan. Writing it down prevents 80% of those fights before they start.
The exchange section says exactly when, where, and how the kids move between households. The most common-sense thing to write down — and the most common source of fights when it isn't.
Kidtime's free schedule wizard covers the most-negotiated section of any plan.