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Guardianship usually involves a child living with her guardian. Therefore, the guardian has physical custody, and the child's parent does not. However, biological parents maintain their parental rights, even when they don't have physical custody.
Custody is determined in Family Court. Guardianship is a court-ordered relationship where an adult is appointed by the court to care for a minor child (ward) whose circumstances require it, and to make decisions about the child's education, support and maintenance.