Don't agree to any reduction in child support. Who knows where you will be in five years? He can always take you to court in five years if he wants to.
Take CS negotiations off the table -- you take what the state says you are entitled to. I promise they aren't going to be giving you too much.
The house payoff is a simply business matter. Not really much to negotiate there once the appraisal number is settled and payoff amount determined.
House deductions are yours, it is your house.
I don't see a lot to argue about.
He has two options:
(1) He gives you the full amount of state child support and you pay him the payoff amount over 5 years.
(2) He gives you the full amount of state child support and you pay him the payoff amount NOW.
In exchange for NOW, you get the exemptions for the kids. This can be a place for bargaining. Maybe he can get one exemption every third year, or ALL kid exemptions this year, but never any in the future. He might actually really like this option. Again, my guess is that he is going to be all about the up front money to solve the problems in his new life.
