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Money & Contracts

How to write a nanny share contract that won't fall apart in month three.

The 11 clauses every share contract needs, plus three more nobody thinks of until it's too late — and how to write them so the agreement actually holds.

Most nanny shares don't fall apart because someone hates the nanny. They come undone because the families never wrote down what would happen when a kid got sick, when someone wanted a raise, or when one family wanted to keep the nanny and the other didn't. Putting it on paper early is how you settle the hard questions while everyone is still being generous with each other.

01 · Why it mattersWhy most shares fall apart on paper, not in person.

The shares that hold together tend to share one habit: before the first day, the families sat down for a couple of unhurried hours and walked line-by-line through every "what if" they could think of.

The shares that imploded in month three? They had a single-page document downloaded from a Google search, signed without reading, and stuck in a drawer. When the inevitable friction came — a sick week, an unequal vacation, a request to swap days — there was no shared agreement to point to. Just two families with different memories of what was decided.

A contract isn't there for when things are going well. It's there for the Tuesday in February when nobody slept and someone has to catch a last-minute flight — that's the moment you'll be glad you wrote it down.

02 · The coreThe 11 clauses every share contract needs.

Start here. None of these are negotiable; what's negotiable is what you fill them in with.

  1. The parties. Legal names and addresses of both families and the nanny. Sounds obvious — half the templates online skip it.
  2. The location. Which home, which days. Rotation schedule if you alternate. Who pays for what at each location.
  3. The schedule. Days, start time, end time, lunch break, latest pickup. "Flexible" is not a schedule. Write the actual hours.
  4. The hourly rate. Gross hourly rate. Overtime rate (often 1.5× after 40 hours). Whether overtime is split or paid by whoever caused it.
  5. How payment splits. 50/50? Pro-rated by kid? Who writes the check vs. who reimburses whom. Cadence — weekly is best.
  6. PTO and sick days. How many of each. Whether they're paid. Whether unused PTO rolls over or expires at year-end.
  7. Federal holidays. Which ones are paid. What happens when a holiday falls on a regular workday vs. a weekend.
  8. Sick child policy. If one family's child is sick, does the share continue at the well-child's home? Or does it pause? Who pays?
  9. Termination notice. Two weeks is standard from either side. Severance, if any. What happens if one family leaves but the other wants to keep the nanny.
  10. Confidentiality. What stays inside the share. Social media policy about the kids. Photo sharing rules.
  11. Annual review. A date on the calendar — typically the anniversary — to revisit pay, hours, and what's working. Non-optional.
Pro tip

Sign three copies. One for each family, one for the nanny. Initial every page. Keep a digital scan. The physical ritual is the point — it makes the agreement feel real.

03 · The hidden onesThe 3 clauses nobody thinks of — until it's too late.

1. The "what if one family moves" clause.

This happens more than you'd expect. Job relocations, second babies, a new house outside the share's geography. Without a clause, the family that stays is suddenly responsible for the full nanny cost overnight, or has to terminate the nanny they love. Decide in advance: how much notice is owed? Does the remaining family get first right to keep the nanny? Is there any cost-sharing during the transition?

2. The raise clause.

Nannies who are great will get raise requests — from the market, from the other families recruiting them, from inflation. If your contract doesn't define how raises get decided, you'll have a passive-aggressive Slack thread instead of a conversation. Write it in: an annual review at a specific date, and a defined mechanism for off-cycle requests (e.g. either family can propose; both must agree).

3. The "third kid" clause.

One family has another baby. Now the nanny is watching three. The hourly rate almost always needs to go up. The split needs to change — that family is now getting more of the care. Define in advance: what's the rate adjustment? What's the split adjustment? When does it take effect (typically when the new baby is 12 weeks old)?

04 · The moneyGetting the money right.

This is the part where well-meaning families lose the most goodwill. The rule: over-specify in writing what feels weird to talk about.

  • Pay weekly, not biweekly. Nannies typically have weekly bills. Weekly pay also means errors get caught faster.
  • Use a payroll service. Poppins, GTM, or HomeWork Solutions all run ~$50-80/month and handle W-2s, tax filing, and withholdings. Split the cost with your share family.
  • Reimburse expenses within 48 hours. Diapers, sunscreen, last-minute Target runs. Don't let it accumulate to a number that feels like a confrontation.
  • Define "gas money." If the nanny drives the kids around, the IRS rate (72.5¢/mi for 2026) is the default. Split it 50/50 unless one family is driving farther.
Heads up

If your combined household wages to the nanny reach $3,000/year (the 2026 threshold), you are a "household employer" and owe federal employment taxes. This is non-optional. Both families typically share the employer tax burden 50/50.

05 · The exitPlan the exit on day one.

The conversation nobody wants to have, at the moment when everyone is most generous toward each other, is the moment to have it. By month nine, when one family wants out, the goodwill is gone — and you'll be negotiating over a wound.

The exit clause should specify, at minimum:

  • How much notice each side owes (typically 30 days from a family, 2 weeks from the nanny)
  • Whether the departing family pays a final month or share of severance
  • Who gets first right to keep the nanny (often: whoever was there first, with the other family having 30 days to find a replacement family)
  • What happens to any shared supplies or equipment
Families who write the breakup clause on the very first call often say it felt morbid at the time. Then, when someone eventually does move, the unwind takes an afternoon instead of three tense months.

06 · Before you signHave the awkward conversation early.

The most useful contract is the one you actually finish. Block off a couple of hours with your partner family and get every "what if" onto paper — schedule, money, sick days, raises, the exit. The shares that last are the ones that had the hard conversation up front, not the ones that hoped it would never come up.

Find your family first

A contract only matters once you've found the right people to write it with. Cubb pairs you with nearby families who fit your schedule, neighborhood, and parenting style — launching in Austin in August 2026. Join the waitlist →

This guide is informational, not legal advice. State laws vary, especially around household employer taxes and worker classification. If you're unsure, a 30-minute consult with a family employment attorney is worth the $150.