SECTION 7 EXPENSES
Raising a child is expensive. In addition to all the normal costs of living, there are often additional costs for childcare, medical and dental expenses, extra-curricular activities, school fees, etc.
When you and your partner are together, you can probably discuss how you want to handle these costs as they arise. After separation or divorce, it might feel a lot harder to raise the issue, but there is a framework for handling these kinds of costs.
In addition to child support, the courts can make an order about special or extraordinary expenses, often called "Section 7 Expenses."[1]
Parents often want to know what counts as a Section 7 Expense and what doesn't. In considering what qualifies as a Section 7 Expense, the Federal Child Support Guidelines lays out the following criteria for the court:
1. The necessity of the expense in relation to the child’s best interests; and
2. The reasonableness of the expense in relation to the means of the spouses and those of the child and to the family’s spending pattern prior to the separation.
That can sound complicated, but in practice, there are some expenses which are quite common and often qualify as Section 7 Expenses. This includes:
· Child care expenses, such as daycare fees or babysitting costs;
· Medical or dental insurance premiums attributable to the child;
· Health related expenses that exceed insurance reimbursement by at least $100 annually (including orthodontic treatment, professional counselling provided by a psychologist, social worker, psychiatrist or any other person, physiotherapy, occupational therapy, speech therapy and prescription drugs, hearing aids, glasses and contact lenses); and
· Expenses for post-secondary education.
There are other extraordinary expenses, including for extracurricular activities, that can sometimes be approved, depending on the circumstances of the case. These can include things like expenses for competitive sports, including swimming, gymnastics, dance, ice-skating, etc.
With extraordinary expenses like these ones, the courts will take a much closer look at the means of both parents and the cost of the expense itself to determine its necessity and reasonableness.
Once something is decided to be a Section 7 Expense, the cost can be split in a couple of different ways. The Guidelines suggest dividing the expenses in proportion to the parties' incomes, but parties are free to come to a different arrangement. [2] One common solution is to divide the cost of the expenses equally between the parties.
If you are uncertain about whether something would be considered a Section 7 Expense, you can always consult a family law lawyer for advice. Just like child support, Section 7 Expenses are an important part of your child's future; make sure you know what your rights and obligations are. Contact us at 604-746-3374 or send us an email at info@mpeaklaw.ca to find out more.
[1] Information about these kinds of expenses are detailed in Section 7 of the Federal Child Support Guidelines, giving them their name.
[2] If you're trying to work out an agreement with your ex regarding the sharing of Section 7 Expenses, try and reach out to them before incurring the expense, so that they have notice and can plan their budget accordingly. This can make for more fruitful negotiations.
