Section 7 Child Support

When parents separate or divorce, ensuring children receive adequate financial support becomes a primary concern. While basic child support covers everyday expenses such as food, clothing, and shelter, certain additional costs fall outside this standard amount. 

These special expenses, known as “Section 7 Expenses” or “Special or Extraordinary Expenses,” form an important component of the overall child support framework in Canada. Understanding what qualifies as a Section 7 expense, how these costs are calculated, and how they’re shared between parents is essential for creating fair support arrangements that truly meet children’s needs.

Defining Section 7 Expenses

Section 7 expenses derive their name from Section 7 of the Child Support Guidelines, which identifies specific categories of special or extraordinary expenses that parents may be required to share beyond the basic table amount of child support. These expenses must be reasonable and necessary for the child’s best interests, and they must be expenses that parents would typically incur if they were still together.

The Child Support Guidelines identify six main categories of Section 7 expenses:

• Childcare expenses incurred as a result of the custodial parent’s employment, illness, disability, or education/training for employment
• Medical and dental insurance premiums attributable to the child
• Health-related expenses that exceed insurance reimbursement by at least $100 annually, including orthodontic treatment, professional counseling, therapy, or specialized care
• Extraordinary expenses for primary or secondary school education or other educational programs that meet the child’s particular needs
• Expenses for post-secondary education
• Extraordinary expenses for extracurricular activities

For an expense to qualify under Section 7, it must satisfy two key tests:

• It must be necessary in relation to the child’s best interests
• It must be reasonable in relation to the parents’ financial means and the family’s spending patterns before separation

The determination of what constitutes “extraordinary” expenses often depends on the family’s specific circumstances, income levels, and spending patterns. What might be considered extraordinary for one family could be ordinary for another.

 

Section 7 vs. Ordinary Child Support

Understanding the distinction between basic child support and Section 7 expenses is crucial. The differences include:

 

Basic Table Amount Child Support:

• Calculated based on standardized Child Support Guidelines tables
• Covers basic necessities like food, clothing, shelter, and everyday expenses
• Non-discretionary and automatically applies based on income and number of children
• Not tax-deductible for the payor or taxable for the recipient
• Not required to be accounted for by the recipient

 

Section 7 Special Expenses:

• Shared proportionally between parents based on respective incomes
• Requires both necessity and reasonableness tests to be met
• Discretionary and can lead to significant disputes if parents cannot agree
• Not tax-deductible or taxable (with some exceptions)
• May require documentation and proof of actual expenses

 

Section 7 expenses function as a supplement to basic child support, recognizing that some children’s needs extend beyond what the base amount can cover. 

Calculating Child Support Under Section 7

Unlike basic child support, which follows a relatively straightforward calculation based on income and number of children, determining Section 7 expenses involves a more complex process.

Income Determination for Child Support

Before calculating Section 7 contributions, parents must establish their respective incomes. This typically starts with line 15000 (total income) from the most recent tax return, but adjustments may be necessary to arrive at the “guideline income” used for support calculations.

 

Potential adjustments include:

• Adding back certain business deductions for self-employed parents
• Attributing income where a parent is intentionally unemployed or underemployed
• Accounting for non-recurring gains or losses
• Considering benefits, dividends, or capital gains
• Accounting for certain tax-free income sources

Once both parents’ guideline incomes are established, their proportional shares are calculated. For example, if one parent earns $60,000 annually and the other earns $40,000, they would have a 60%/40% split of Section 7 expenses.

Proportional Sharing of Section 7 Expenses

Section 7 expenses are typically shared proportionally to each parent’s income after accounting for any tax benefits or subsidies. The standard formula for calculating each parent’s share is:

• Determine the total cost of the expense
• Subtract any tax benefits, credits, or subsidies received
• Subtract any contributions from the child (typically only required for post-secondary expenses)
• Divide the remaining amount proportionally based on parents’ incomes

For example, if a child’s orthodontic treatment costs $6,000, and the parents have a 60/40 income split:

• Parent A (60% of income): $3,600 contribution
• Parent B (40% of income): $2,400 contribution

However, if Parent A receives a $1,000 insurance reimbursement, the calculation could adjust as follows:

• Total after reimbursement: $5,000
• Parent A: $3,000 contribution
• Parent B: $2,000 contribution

Or it could adjust as follows:

• Parent A (60% of income): $1,000.00 from insurance and $2,600 out of pocket
• Parent B (40% of income): $2,400 contribution

 

The process of determining whether parents have to agree on Section 7 expenses can be complex. Ideally, parents will collaborate on decisions regarding special expenses, but when agreement isn’t possible, courts can intervene to determine whether expenses meet the necessary criteria.

 

Documentation and Payment Mechanisms

Proper documentation is essential for Section 7 expenses. This typically includes:

• Receipts for actual expenses incurred
• Proof of payment
• Insurance claim information and reimbursement details
• Cost estimates for anticipated expenses

 

Parents can handle Section 7 payments in various ways:

• Direct reimbursement between parents after expenses are incurred
• Creation of a joint account for Section 7 expenses
• Regular monthly payments based on anticipated expenses
• Payment directly to service providers

 

Whatever method is chosen, clear record-keeping helps avoid disputes and ensures expenses are properly shared.

Special Considerations in Section 7 Child Support

Various types of Section 7 expenses present unique considerations when determining whether they qualify and how they should be shared.

Accounting for Childcare and Health Insurance Costs

Childcare Expenses

Childcare expenses are among the most common Section 7 expenses. To qualify, these expenses must be:

• Necessary due to the custodial parent’s employment, illness, disability, or education
• Reasonable given the parents’ means and family’s pre-separation spending patterns
• Courts generally recognize the necessity of childcare expenses that enables a parent to work but may scrutinize the reasonableness of costs for premium childcare services.

 

Important considerations include:

• Tax deductions and benefits available for childcare
• Whether less expensive alternatives are available
• The child’s specific needs that might justify specialized care
• Work schedules that might affect childcare requirements

Health Insurance and Medical Expenses

Health-related expenses form another significant category. These include:

• Insurance premiums attributable to the child
• Medical and dental expenses not covered by insurance
• Therapy, counseling, and specialized treatments
• Prescription medications

To qualify, health-related expenses must exceed insurance coverage by at least $100 annually. This requirement prevents disputes over nominal amounts while ensuring significant medical needs are properly addressed.

When one parent has health insurance coverage through employment, courts typically order that parent to maintain coverage for the children. The premium cost attributable to the children (not the parent’s portion) becomes a Section 7 expense shared proportionally.

Handling Extraordinary Educational Expenses

Educational expenses can be particularly contentious as parents often have different views on what constitutes necessary education.

Primary and Secondary Education

For primary and secondary education, only “extraordinary” expenses qualify under Section 7. These may include:

• Private school tuition (if justified by the child’s needs or family history)
• Specialized programs for gifted children or those with learning disabilities
• Tutoring for children with demonstrated academic challenges
• Educational assessments and testing

 

Post-Secondary Education

Post-secondary education expenses receive special treatment under Section 7. These may include:

• Tuition and mandatory fees
• Books and supplies
• Reasonable living expenses if attending away from home
• Transportation between the school and home

 

Courts consider several factors when determining whether and how to share post-secondary expenses:

• The child’s aptitude and commitment to education
• The parents’ level of education and expectations
• The family’s pre-separation practices regarding education savings
• The child’s ability to contribute through work, loans, or scholarships
• The affordability of the chosen institution and program

 

Unlike other Section 7 expenses, depending on the family’s circumstances older children may be required to contribute to their own post-secondary education through part-time work, student loans, or scholarships.

Incorporating Extracurricular Activities and Special Needs

Extracurricular Activities

For extracurricular activities to qualify as Section 7 expenses, they must be “extraordinary.” Factors that courts consider include:

• The child’s talent and commitment to the activity
• Whether the child participated in the activity before separation
• The cost relative to the parents’ means
• The benefit to the child’s development

 

Basic recreational activities are generally covered by the table amount of child support. However, competitive sports, specialized artistic training, or other high-level activities often qualify as Section 7 expenses when they involve significant costs for equipment, travel, competition fees, or specialized coaching.

Special Needs Considerations

Children with special needs may require additional support beyond typical Section 7 categories. These might include:

• Specialized equipment
• Accessibility modifications
• Additional therapy or treatments
• Specialized transportation
• Respite care

Courts typically give special consideration to expenses related to a child’s documented disability or special needs, recognizing that these expenses are necessary for the child’s wellbeing and development.

When these expenses are ongoing and predictable, courts may order a regular monthly payment in addition to basic child support rather than requiring constant documentation and reimbursement.

Enforcing and Modifying Section 7 Support

Enforcement Mechanisms

Section 7 expenses can be more challenging to enforce than basic child support due to their variable nature. When included in a court order or agreement, these expenses can be enforced through:

• Provincial enforcement agencies like the Family Responsibility Office
• Contempt of court proceedings
• Collection of arrears through wage garnishment or other mechanisms

To facilitate enforcement, court orders regarding Section 7 expenses should be as specific as possible, detailing:

• Which categories of expenses qualify
• The proportional sharing arrangement
• Documentation requirements
• Payment mechanisms and timelines
• Dispute resolution processes

In some cases, particularly for predictable expenses like insurance premiums or regular therapy, courts may order a fixed monthly amount for Section 7 expenses to simplify enforcement.

Like other aspects of child support, Section 7 expenses may require modification as circumstances change. Reasons for modification might include:

• Changes in either parent’s income
• Changes in the child’s needs
• Changes in available programs or services
• The addition of new necessary expenses
• The termination of certain activities or needs

 

Parents can agree to modifications without court involvement, but formalized changes through an amended court order provide better protection and enforceability. In cases where retroactive child support is an issue, Section 7 expenses may be included in retroactive calculations if they meet the necessary criteria.

Regular reviews of Section 7 arrangements can help ensure they remain appropriate as children grow and their needs evolve. Many separation agreements or court orders include provisions for annual reviews coinciding with tax filing, when updated income information becomes available.

Navigating Section 7 Expenses With Confidence

Section 7 expenses represent an important component of child support that ensures children’s special needs and extraordinary expenses are properly addressed after separation or divorce. By sharing these costs proportionally to income, the system attempts to maintain children’s access to necessary activities and services while distributing the financial burden fairly between parents.

Successfully navigating Section 7 expenses requires clear communication, proper documentation, and a focus on children’s best interests. While disagreements about what qualifies as necessary and reasonable are common, approaching these issues with flexibility and child-focused decision-making can help parents avoid costly and stressful litigation.

If you’re facing challenges related to Section 7 expenses in Oakville or surrounding areas, or if you need guidance on any aspect of child support, contact our experienced family law team. We can help you understand your rights and obligations, negotiate fair arrangements, and advocate for your children’s needs while protecting your financial interests.