Introduction
In Canadian child support, basic child support payments cover everyday expenses such as food, shelter, and clothing for the child. However, some expenses go beyond these basic needs and are considered “special or extraordinary” costs. These expenses are known as Section 7 expenses, named after Section 7 of the Federal Child Support Guidelines. This article will help you understand what qualifies as Section 7 expenses, how they are calculated, and how they are shared between parents.
What Are Section 7 Expenses?
Section 7 expenses are costs that go beyond regular child support payments and cover special or extraordinary expenses for the child. These expenses are typically related to the child’s well-being, education, and development. The costs must be reasonable and necessary, and both parents are responsible for sharing these expenses based on their incomes.
Examples of Section 7 Expenses
Here are some common examples of Section 7 expenses:
- Childcare Costs: This includes daycare, babysitting, or after-school programs needed while a parent is working, attending school, or training for a new job.
- Medical and Dental Expenses: These include uninsured medical or dental costs, such as orthodontics, prescription medications, counseling, or therapy.
- Education Costs: This covers tuition fees, school supplies, tutoring, and post-secondary education expenses.
- Extracurricular Activities: Expenses related to sports, music lessons, dance classes, or other activities that contribute to the child’s development.
- Special Needs: Costs associated with supporting a child with physical or mental disabilities, such as specialized equipment or programs.
How Are Section 7 Expenses Calculated?
Section 7 expenses are shared between parents in proportion to their incomes. The calculation involves determining each parent’s share of the expenses based on their gross income and the total amount of Section 7 expenses. Here’s how it works:
Step 1: Determine Total Section 7 Expenses
The first step is to add up the total amount of all applicable Section 7 expenses, such as childcare fees, medical bills, or tuition costs.
Step 2: Calculate Each Parent’s Proportional Share
Next, you need to calculate each parent’s share of these expenses based on their incomes. The formula is:
Parent's Share = (Parent’s Income / Combined Income) x Total Section 7 Expenses
The parent’s income is divided by the combined total income of both parents to get a percentage. This percentage is then multiplied by the total Section 7 expenses to determine how much each parent must contribute.
Example Calculation
- Income of Parent 1 (Paying Parent): $70,000 per year
- Income of Parent 2 (Receiving Parent): $50,000 per year
- Total Section 7 Expenses (Daycare Costs): $500 per month
First, add both parents’ incomes together: $70,000 + $50,000 = $120,000
Then, calculate each parent’s proportional share of the expenses:
- Parent 1’s Share: (70,000 / 120,000) = 58% of $500 = $290 per month
- Parent 2’s Share: (50,000 / 120,000) = 42% of $500 = $210 per month
In this example, Parent 1 would be responsible for paying $290 towards the daycare costs, and Parent 2 would contribute $210.
Disagreements Over Section 7 Expenses
Disputes about Section 7 expenses can arise when parents disagree on whether certain costs are reasonable or necessary. If parents cannot come to an agreement, they can seek a court’s decision. The court will consider factors such as:
- The financial situation of each parent
- The needs of the child
- Whether the expense is in the child’s best interest
- Whether both parents were consulted before the expense was incurred
It is always advisable for parents to communicate and agree on Section 7 expenses beforehand to avoid potential disputes.
How to Apply for Section 7 Expenses
If Section 7 expenses are not already included in your child support order, you may need to apply to the court to have them added. This can be done by filing a motion to vary the existing child support order. You will need to provide evidence of the expenses and demonstrate that they are necessary and reasonable.
Conclusion
Section 7 expenses in Canadian child support ensure that both parents contribute fairly to extraordinary costs that go beyond basic child support payments. These expenses, such as medical care, childcare, and educational fees, are shared in proportion to each parent’s income. Understanding how Section 7 expenses work and maintaining open communication with the other parent can help avoid disputes and ensure that your child’s needs are met.
If you need assistance with Section 7 expenses or any other child support matters, consider consulting a family lawyer for guidance specific to your situation.