This grounded theory study examines how parents make decisions about custody arrangements of their children following divorce. Eleven divorced parents who shared physical and legal custody of their children were interviewed. Eleven factors influenced the custody arrangement decisions of divorcing parents: former partner, children, work, new partner, use of a lawyer, role of family, parenting role, place of residence, finances, divorce, and adolescent input. Parents weighed perceived costs and rewards when determining their custody arrangements. Custody arrangement decisions involve complexities that parents face. Several factors are considered; the custody arrangement decision making process varies for families.