Second Chances: Nancy’s Fight for What’s Right

A Narrative Story of In re Marriage of Gerardy, 406 N.W.2d 10 (Minn. Ct. App. 1987)

Nancy Gerardy* sat in her car outside the courthouse, hands trembling as she held the divorce papers. At 26, working as a licensed practical nurse and earning just $200 a week, she knew filing for divorce from Mark Gerardy* in August 1985 would change everything for her and five-year-old Brandon. What she didn’t expect was how much she’d have to fight for what felt fundamentally right.

The first blow came in February 1986 when the court awarded joint custody of Brandon to both parents. Despite being Brandon’s primary caretaker—the one who packed his lunches, read bedtime stories, and comforted him through nightmares—Nancy watched as the court divided her son’s time equally between two homes. The decision felt like a dismissal of everything she’d poured into motherhood.

Nancy’s heart ached watching Brandon struggle with the constant transitions. She knew this wasn’t what was best for him, and despite her fears about challenging the system, she found the courage to appeal. The months of waiting felt endless, filled with uncertainty and the exhausting logistics of shared custody that disrupted Brandon’s routine and sense of stability.

Then came the moment that changed everything. The Court of Appeals saw what Nancy had known all along—she was Brandon’s primary caretaker, and he belonged with her. The reversal brought overwhelming relief and validation. Finally, someone understood the depth of her connection with Brandon and recognized her role as his anchor.

But Nancy’s relief was short-lived. Despite winning custody, the trial court refused to adjust child support or grant her the tax deduction for Brandon. Nancy felt frustrated and invisible again. How could they acknowledge she should be Brandon’s primary parent but ignore the financial reality of supporting him on her modest salary while Mark earned $284 a week?

Nancy knew she couldn’t give up. This wasn’t just about money—it was about fairness and Brandon’s future. She appealed again, this time armed with the confidence that comes from knowing you’re fighting for what’s right.

The second victory felt even sweeter. The Court of Appeals understood completely: when custody changes, support must change too. They ordered proper child support under state guidelines and awarded Nancy the tax deduction that federal law intended for custodial parents.

Nancy’s journey taught her that persistence pays off when you’re advocating for your child’s well-being. What began as a frightening leap into the unknown became a story of empowerment, showing her that standing up for what’s right—even when it requires multiple battles—always leads to the clarity and stability her family deserved.

*This story is based on the true facts of the appellate court’s decision, but the personal experiences and emotions described are a fictional representation to bring the case to life.

Question: Who gets to claim the child as a dependent when parents are divorced?

Answer: The parent who has the child living with them for more than half the year automatically gets to claim the child, unless they sign a form giving up this right to the other parent.

The custodial parent is entitled to claim a child as a dependent, unless the custodial parent affirmatively waives the right to claim the exemption in writing, and the writing is attached to the noncustodial parent’s tax return. 26 U.S.C. § 152(e)(2). As reflected on IRS Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents, the waiver must be written and can cover a single year, a number of years, or be permanent. “Custodial parent” is defined as the parent having actual custody of a child for the greater portion of the year. 26 U.S.C. § 152(e)(3)(A). Taxpayers are required to report the Social Security numbers of the dependents that are claimed. If both parents claim the same child as a dependent, it is easy for the IRS to detect the duplication. What follows is a discussion of pertinent court cases related to the dependency exemption:

Question: What can I do to get tax credit when I spent more than 50/50 with my child?

Answer: A father who kept detailed daily logs showing he had his daughter more than half the year was allowed to claim her as a dependent, even though they had joint custody.

In McCullar v. Commissioner, T.C. Memo 2003-272 (2003), the father/joint custodial parent was found to be entitled to the dependency exemption for his daughter. His credible testimony and highly detailed log of the time he spent with his daughter each day of the subject year showed that he had physical custody for a greater portion of the year than did his ex-wife.

Question: Can a non-custodial parent claim their child as a dependent?

Answer: A father who didn’t have his son for more than half the year and couldn’t prove he provided most of the child’s support was not allowed to claim the dependency exemption.

In Caputi v. Commissioner, T.C. Memo 2004-283 (2004), the father/noncustodial parent was not entitled to the dependency exemption deduction for his son, nor was he given “head of household” filing status. He did not provide any evidence that he had custody for a greater portion of the year than his ex-wife, nor that he provided over half the son’s total support.

Question: Can a mother with joint custody claim her child as a dependent?

Answer: A mother who could prove she had her son living with her for more than half the year was allowed to claim him as a dependent, even with joint custody.

In Dail v. Commissioner, T.C. Memo 2003-211 (2003), the mother/joint custodial parent was entitled to the dependency exemption for her son. Her credible testimony showed that she had physical custody for a greater portion of the year than did her ex-husband.

Question: What tax claim for children can a parent make if he has summer custody and some weekends? Or alternatively only 5 days less than 50/50 over the year? 

Answer: A father who only had his son during summers and occasional weekends couldn’t claim him as a dependent because this didn’t add up to more than half the year.

In Smith v. Commissioner, T.C. Memo 2006-163 (2006), the father’s exemption claim for his minor son was disallowed. While he had custody during the summer and occasional weekends, the time did not amount to more than half the year. The father did not provide specific dates or maintain a log. The child tax and earned income credits were also disallowed because the child was not his dependent.

Reviewing the number of nights spent with each parent, the father failed to show that the “more than one-half year” requirement was met (the difference in nights spent with each parent was as low as five days, according to the taxpayer). Broz v. Comm’r, 137 T.C. 5 (2011).

The tax court denied the taxpayer’s dependency exemption deductions and child tax credits for his sons because the children spent more than half of the nights with their mother. Phillips v. Comm’r, T.C. Memo. 2011-199 (2011).

Question: What happens for child tax claims when parents have exactly equal time with their child?

Answer: When both parents have the child for exactly the same amount of time, the parent who makes more money gets to claim the child as a dependent.

26 U.S.C. § 152(c)(4)(B) provides that if the child lived with each parent the same amount of time, the parent with the highest adjusted gross income (AGI) gets the exemption. Section 152 further provides that support received by a child from a stepparent will be deemed as having been received from the natural parent.