Dear Rick,
The Internal Revenue Code gives the parent with primary custody of the children the right to claim them as dependents for tax purposes. However, you can agree, as the custodial parent, to give up that exemption to the other parent, or to alternate years. You should definitely talk to a CPA about how that exemption would best be used between you and your wife. Just because one parent is the primary custodian does not necessarily mean it makes the most tax sense for them to keep the exemption.
Good luck!
Shonnese D. Stanback
Attorney
The Rosen Law Firm
4101 Lake Boone Trail, Suite 200
Raleigh, North Carolina 27607
919.256.1534 direct voice
919.256.1667 direct fax
919.787.6668 main voice
919.787.6361 main fax
NCdivorce.com
email: sstanback@rosen.com
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.