Raising children is expensive. When parents live separate and apart from each other, the parent that has day-to-day care of the children usually receives child support from the other parent to help cover the core costs of raising the child. The parent paying child support may also be required to pay an additional sum of money to help cover extra expenses for the child such as daycare, medical or dental expenses, extra-curricular activities or educational expenses. These extra expenses are called section 7 expenses.
What are section 7 expenses?
Section 7 of the Federal Child Support Guidelines outlines that special or extraordinary expenses can include:
(a) child care expenses incurred as a result of the employment, illness, disability or education or training for employment of the spouse who has the majority of parenting time;
(b) that portion of the medical and dental insurance premiums attributable to the child;
(c) health-related expenses that exceed insurance reimbursement by at least $100.00 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;
(d) extraordinary expenses for primary or secondary school education or for any other educational programs that meet the child’s particular needs;
(e) expenses for post-secondary education; and,
(f) extraordinary expenses for extracurricular activities.
If parents agree to share the costs for the section 7 expenses voluntarily, they are welcome to split the bill between themselves however they want. If either parent does not want to pay, or if the parents disagree on how much they should each have to pay towards the expense, then court intervention could become necessary. The Honourable Court will make a decision taking into consideration the necessity of the expense in relation to the child’s best interests and the reasonableness of the expense in relation to the means of the parents and those of the child and to the family’s spending pattern prior to the separation.
What’s the big deal with Section 7 Expenses?
Section 7 expenses are expensive. The costs of daycare, private schools, extracurricular activities, psychologists, dental treatment plans or braces can add up quickly. Section 7 expenses are often way more than the average working parent can afford on their income alone without making sacrifices.
When section 7 expenses are shared based on a proportionate share of each parent’s income, these extra section 7 expenses can cause significant financial stress to the parent that earns more money and pays the bigger percentage of the expense. If the lower earning parent has $0 income, then the working parent could be on the hook for paying 100% of the section 7 expense. When a lower earning parent frequently pays for section 7 expenses for the child or children without talking to the other parent first, the higher earning parent usually becomes resentful that the other parent is able to spend their money unilaterally. There are usually many ways to help reduce the costs of section 7 expenses that are not pursued when one parent is expecting the other parent to cover most of the bill.
How can you lower section 7 expenses?
Parents that are resourceful can provide extras for their children on a budget without breaking the bank. For example, if children require glasses, parents have the option to take the prescription from the optometrist and use it to purchase glasses online. With a quick Google search, it is possible to purchase prescription glasses for as little as $30.00. That is a huge savings compared to purchasing in store.
As another example, if a child requires a dental appliance such as a mouthguard, with a quick Google search, it is possible to purchase one online that is the exact same quality as the one you get from the dentist for as little as a couple hundred bucks. There are many online providers that mail out kits for taking teeth impressions, then the impressions are sent back to the company in a prepaid envelope. Within a short period of time, the mouth guard is created in a lab then mailed back to the recipient. The entire process is efficient, and the end product is the same as would be received from a dental office but for a fraction of the cost.
What should you take from this?
Parents should communicate with each other in advance regarding section 7 expenses for their child or children. If the proposed section 7 expense would cause either parent financial stress, then the parents should work together to explore non-traditional options such as online vendors before paying top dollar at retail stores, optometrists or dental offices for the exact same product. Secondhand shopping for gear or equipment for activities is also another possible option to reduce costs. Failing to do so could result in overpaying for extras for the child followed by paying for lawyers to argue about paying for the extras in court.
The Edmonton Family Network was designed to be used as a resource to anyone dealing with a difficult family situation. The Edmonton Family Network is familiar with the current limitations of the legal system and the barriers many people face trying to access and afford legal services. The Edmonton Family Network aims to educate and connect people with affordable resources and service providers that can help.
