Section 7 Expenses
Introduction
Child support in Canada is an intricate process that is dually focused. It entails the monthly table amount intended to address everyday living expenses of a child, and it also includes an optional additional amount for special or extraordinary expenses, which are defined by Section 7 of the Child Support Guidelines. These Special or Extraordinary Expenses, often referred to as s. 7 expenses, vary significantly per family and are therefore not included in the table amounts. This blog post aims to provide an in-depth understanding of the who, what, when, where, and why of s. 7 expenses, offering crucial insights for both parents and legal practitioners in this field.
Guiding Principles of Calculating Payments
The core of the Child Support Guidelines is Section 7, often referred to as the “Guidelines”. This section lays out the “guiding principle” for calculating child support payments. According to this principle, expenses should be shared proportionately by the parents or spouses in relation to their respective incomes. Any contribution from the child is deducted from the total expense before this calculation. However, these guidelines serve as guiding principles and not as rigid, inflexible formulas. The court has the discretion to order a different cost-sharing arrangement, depending on the unique circumstances of each case. This highlights the importance of individual case assessment and the fact that child support payments are not a one-size-fits-all solution.
Who Can Request Section 7 Expenses?
A parent or spouse has the legal right to request that a court provide, in a court order, for an amount to pay for all or part of a special or extraordinary expense for a child. This contribution is available under the Guidelines under both the Divorce Act and the Family Law Act, making it accessible for a wide variety of family structures. Adult children can also bring a claim on their own behalf as “dependants” - a provision that recognizes the ongoing need for support in certain circumstances. The person who has actually paid or will be paying the expense is the one who should make the claim for contribution to the s. 7 expense. This ensures that the person bearing the financial burden has the opportunity to seek assistance from the court.
What Qualifies as a Section 7 Expense?
The contribution requested must be for actual expenses already paid, or that are actually going to be paid. Hypothetical expenses and wish lists are not acceptable. It is important to note that the expenses eligible under s. 7 are strictly defined. They include costs such as child care expenses (needed because of work, disability or education or training), health and medical expenses (including insurance premiums for the child), extraordinary expenses for primary and secondary school or educational programs that meet the child’s particular needs (extraordinary expenses only), expenses for post-secondary education, and extraordinary expenses for extracurricular activities. Even if the expense falls under an enumerated category, it must also be reasonable and necessary in relation to the best interests of the child, the financial means of the parents and child, and the spending pattern of the family prior to separation.
When and Where to Request Section 7 Expenses?
A request for s. 7 expenses does not need to be made in every case. It should be made only when there are actual or anticipated expenses of the type listed in s. 7 and it is important for the child. Claims may be brought in either the Ontario Court of Justice (“OCJ”) or the Superior Court of Justice (“SCJ”). It’s also important to note that when the parties are proceeding out of court, a request for payment on account of s. 7 expenses should be made at the outset of correspondence and negotiations with the other party or counsel.
Why Are Section 7 Expenses Important?
Misunderstandings about s. 7 expenses often lead to unnecessary conflict between parents. It is important for both parents to understand what is covered by the monthly table amount and what is to be paid above and beyond that amount, and how those extra expenses are actually going to be paid.
The expenses listed in s. 7 are real costs that impact the day-to-day finances of family law clients. These recurring expenses often have an added emotional importance because of the direct impact that they have on the parties’ children. Thus, resolving s. 7 expenses in a practical and cost-efficient manner can significantly ease the day-to-day functioning of separated spouses and their children.
The Role of the Court's Discretion
The court's discretion plays a pivotal role in child support determinations. While the Guidelines provide a useful starting point, the court has the ability to deviate from them. This discretion allows for adjustments to be made based on several factors, including the financial resources of the child, the financial resources and circumstances of each parent, and the nature and details of the specific expenses. For instance, the court can adjust the payment calculations based on the child's aptitude and ambitions towards higher education. This flexibility ensures that the child's best interests are always at the forefront of any determinations.
Influence of Unique Case Facts
The principles and guidelines provide a general framework for child support payments, but the final amount is subject to the court's discretion and the unique circumstances of each case. The court considers a diverse range of factors, including the parents' financial circumstances, the child's needs, and the standards of living and economic circumstances of each parent. This flexibility allows the court to make decisions that are in the child's best interest while ensuring fairness to the parents. It underscores the fact that while the guidelines provide a roadmap, the final determination is highly individualized to align with the details of each specific case.
Concept of Child’s Contribution
The concept of a child’s contribution is an integral part of calculating Section 7 expenses. This contribution is primarily considered in relation to post-secondary education expenses. For children under the age of majority, their contributions are rarely taken into account for other Section 7 expenses, although the section's wording does not specifically limit this. Once a child is over the age of 18 and there is an ongoing child support obligation, the courts consider the child’s financial resources. These resources are then deducted from the Section 7 expenses, and the remaining balance is divided between the parents, ensuring a fair distribution of responsibilities.
Conclusion
Understanding the intricacies of child support payments, particularly Section 7 expenses, is crucial for those navigating the complexities of family law. While the guiding principles provide a basic framework, it's important to remember that each case is unique, and the court has the discretion to adjust payments based on the circumstances. With the various factors at play, including income and tax adjustments, it's advisable to seek professional legal advice to fully understand the nuances and potential implications. The ultimate aim is to ensure the best interest of the child while maintaining fairness to both parents.
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