We can each file single, with a dependent. But if our dependent is staying with us more than half the year, both of us could file as HoH with one dependent. Right?
You can only use a child to file as head of household if the child actually lived with you for more than half the year, even if you can claim the child as a dependent. Claiming a child as a dependent does not automatically allow you to use that child to file as head of household. If you claim the child as a dependent, but the child did not live with you for more than half the year, you cannot use that child to file as head of household.
In a year in which there are 365 days, it is impossible to equally share a particular child. The parent with whom each child spent the most number of nights is considered the custodial parent.
Edit:. OP changed the question and information after this comment was made. OP had originally made no reference to unequal custody sharing of children.
You can only use a child to file as head of household if the child actually lived with you for more than half the year, even if you can claim the child as a dependent. Claiming a child as a dependent does not automatically allow you to use that child to file as head of household. If you claim the child as a dependent, but the child did not live with you for more than half the year, you cannot use that child to file as head of household.