This methodological article aims to acquire a better understanding of how current research in the traditional income distribution literature considers shared-care families and what kind of implications these approaches pose for measuring the economic well-being of children living in two homes. Second, it provides insights on how to measure the economic standard of living of individuals in shared-care families. These aims are related to research gaps identified in existing research on separated families. The article pursues these goals by addressing the problems involved, highlighting some of these issues' magnitude and proposing ways to reduce bias in estimates of income inequality and poverty in post-separation families. The article also demonstrates the need to revise current theoretical assumptions that guide measures of economic well-being in order to accurately estimate the standard of living of children and parents in shared-care families.