What are Section 7 Expenses?

As a rule, child support payments in Canada are calculated based on the government’s projection for what is reasonable for a child to live on (called the table amount) and section 7 expenses. The goal of child support is to provide additional income to a custodial parent to help them maintain a reasonable standard of living for a child. 

The table amount is provided in the Child Support Guidelines which contains a Child Support Table for each Canadian province. How much each parent pays as child support will depend on their yearly gross income and how many children the marriage produced. 

While these amounts are fixed within the Table, they are calculated to take into account usual expenses of a custodial parent. For instance, a parent living in a one-bed apartment might need to rent a two-bed because they now have custody of the child. Child support payments are intended to assist with this expense. Other usual expenses include feeding, electricity, heating, etc. 

Compared to the table amount, section 7 expenses cover special or extraordinary expenses. By definition, these expenses are beyond the usual expenses that a child would ordinarily need to maintain a reasonable standard of living. 

Not necessarily. Usual day-to-day clothing will usually be considered a normal expense associated with raising a child. However, major clothing items such as those required for sports or other extracurriculars, winter jackets or boots, etc. may qualify. 

It is important to keep in mind that what amounts to a section 7 expense might differ from family to family. While certain expenses might be extraordinary for one family, they might fall within what is considered reasonable for another. 

That said, the Child Support Guidelines lists items that would typically fall within special or extraordinary expenses. They include: 

• Child care expenses relating to illness, education of a parent, employment, or disability. These expenses might cover the cost of private babysitting or day care
• Insurance premiums for dental or medical insurance covering the child
• Health expenses that exceed $100 a year, including payments for speech therapy, hearing aids, braces, physiotherapy, glasses, etc. 
• Expenses for post-secondary education such as tuition, books, stationery for college or university 
• Special expenses for extraordinary needs that the child might need in primary or secondary school. These might include private schooling or special needs education
• Expenses related to extracurricular activities for the child

You should also note that not all expenses fall comfortably within either section 7 expenses or usual expenses anticipated within the table amount. There might be confusion about how extra expenses like cell phones, laptops, bus passes, or similar expenses should be treated. 

If you are facing this dilemma, a profession can help determine how these expenses should factor into your child support payments.

Generally, section 7 expenses are calculated by the parents based on what they believe to be reasonable and necessary extra payments. If there is no agreement about these payments, or if both parents agree that no section 7 expenses apply, then the applicable child support payment will be only the table amount in the Guidelines. 

The amount to be paid by each parent will be calculated based on the gross income of each parent. The parent who earns more per year will often be required to pay the greater share of the amount. For instance, if one parent earns $65,000 per year while the other earns $35,000, the payment will be split by 65% and 35% respectively. Where the parents choose to, they might agree to split the section 7 expenses equally, meaning they each pay 50%. 

But what happens in a case where the parents share custody of their child? The law only regards parents to have shared custody when the child spends more than 40% of their time with each parent. Where this is the case, both parents have an obligation to pay child support. 

They will be required to calculate their child support payments individually, including whatever section 7 expenses are agreed on. However, the actual amount to be paid will be the difference between their child support obligation. For instance, if they determine that Parent A will pay $1,000, while Parent B has an obligation of $700, then Parent A will pay $300 to the Parent B.

Section 7 expenses are expected to be agreed upon by the parents, except where the payment is ordered by the court. If you and the other parent have come to an agreement about these expenses, then you might be bound to pay according to the agreement. This will especially be the case where the agreement has been lodged with the court. 

However, there are many circumstances where you might be able to contest these expenses. For instance, if you believe that the expenses are not reasonable or that the other parent has withheld information regarding the expenses, you can apply to the court to for a review. 

The court will consider whether the expense should qualify as special or extraordinary based on several factors including: 

• The nature of the expense
• Each parent’s income
• The child’s special needs or talents