Q. I am divorced. I would like to contribute to the Dependent Day Care Flexible Spending Account Plan, but my ex-husband already contributes to a DFSA through his employer. May we both participate in a DFSA?
A. It will not make sense for both of you to participate in a DFSA.
A DFSA may reimburse expenses only for qualifying individuals. A qualifying individual must have the same principal place of abode as the employee for more than half of the year. In a divorce situation, a child is a qualifying individual with respect to the custodial parent- the parent having custody for the greater portion of the calendar year- regardless of which parent claims the child on the tax return. So, only one of the parents can claim expenses for the child and it would not make sense for both to contribute to a DFSA. You will have to determine who is the custodial parent.
