So, what exactly do section 7 expenses include? Where do you draw the line? Today, we’re sharing exactly what’s included in section 7 expenses and a few key examples, too.
Let’s dive in…
When parents divorce, child support is often one of the arrangements that needs to be agree upon. In looking at what financial support should be provided for the child, there will be both a base amount determined, and in some cases, extraordinary expenses, or Section 7 expenses.
The base amount will be determined dealing with the ordinary expenses that most or all children have. This arrangement is called Section 3 child support.
Section 7 expenses are paid to cover certain expenses that are not covered by the base Section 3 support amount.
What do Section 7 Expenses include?
College and University Expenses
Both parents must contribute to the cost of tuition, books and living expenses (if child is living away from home). Where a child is over the age of 18, there will often be an expectation that the child will make at least a partial contribution to either living expenses or the cost of the education.
Child Care Expenses
The payor parent must contribute to the after tax cost of day care, day home and nanny expenses.
Extraordinary School Fees
Any costs that are in excess of ordinary primary or secondary school such as tutoring, private school fees or charter school fees.
Uninsured Healthcare Fees
These include any payments made towards the healthcare of your child that are not covered by the payor’s or the recipient’s insurance.
Healthcare Insurance Premiums
Any healthcare premiums that are intended to cover the child.
Extraordinary or extracurricular expenses
This would refer to sports activities, lessons that are extraordinary for a family with the combined income of the payor and recipient. Extracurricular activity expenses are among the most complex issues in child support to deal with. Extraordinary activity expenses are determined based on many factors, including whether the primary parent can afford it without extra help, if involvement in the program is truly in the child’s best interests, and any other activities the child already takes part in.
How much the payor and recipient contribute to these expenses is determined solely by each person’s income. The amount for the expense is divided proportionately based on the incomes of the parties. The person with the higher income is expected to pay more, but if both parents make the same amount of money, the cost of the special expense is split evenly between the parents. A family lawyer or the Child Support Resolution office can help calculate what proportion is appropriate for each party involved.
Alberta Child Custody Lawyers
McGlashan & Company is a full-service law firm in Edmonton, Alberta.