Learn what Section 7 expenses are in Canadian family law, including childcare, medical, and educational costs, and how they are divided between parents.
When parents separate or divorce, ensuring the financial well-being of their children is a top priority. While child support covers basic needs, some costs go beyond the standard table amounts—these are called Section 7 expenses. Also known as “special or extraordinary” expenses, they include things like childcare, medical bills, school fees, and extracurricular activities. But how are these expenses divided, and what happens if parents disagree? Here’s what you need to know.
Canadian family law mandates that parents have a legal obligation to financially support their children after a separation or divorce. The amount of child support is generally determined by the child support guidelines which provide table amounts based on the payor parent’s income. Canadian family law also anticipates so called Section 7 expenses, also know as “special or extraordinary” expenses. These are costs related to the child that are not covered by the standard table amount.
These expenses are typically shared by the parents of a child based on their respective incomes, meaning the parent who earns more, pays proportionally more. These expenses are typically agreed upon in advance by both parents as part of a separation agreement or Court Order.
Section 7 expenses can include childcare expenses; medical, dental and other health-related expenses; and health insurance premiums. Some examples include things like braces, therapy, day-care costs and other medical costs for the child.
Section 7 expenses can also be expenses for education purposes, extra circular activities and post secondary education so long as they are “extraordinary”. Specific examples include things like tuition, summer camp, and sport fees.
However, sometimes parties will disagree about whether an expense should be shared. If parties cannot agree about whether an expense is a special or extraordinary expense, and court intervention is necessary, the case of Titova v. Titov has set out the procedure for awarding section 7 expenses.
First it must be determined whether the claimed expense falls within the categories enumerated by the provincial Guidelines. Assuming the expense falls into one of these categories, it must be determined whether the expense is “extraordinary.” An extraordinary expense is one that exceeds what a parent can reasonably be expected to cover considering that person’s income and the table child support amount. The claimed expense must be in the best interest of the child and reasonable in relation to the mean of the parties and the child and the family’s spending pattern prior to separation.
The definition of a section 7 expense is intentionally broad because the necessity of expenses that are special or extraordinary will change depending on the circumstances of the child and parents.
All of that to say that certain expenses may be reasonable and, in the child’s best interest – for example attending an expensive private school is an education expense and (likely) in the child’s best interest. However, it would need to be determined if based on the income levels of the parents, and historic spending levels whether private school is a reasonable expense.
Parties are highly encouraged to consult one another prior to incurring an expense. Not only does this better facilitate discussion between the parties, prior consultation or the failure to consult is considered by the courts as a factor when determining entitlement.
Navigating Section 7 expenses can be complex, especially when parents have different views on what’s reasonable. If you’re dealing with a dispute over child-related costs or need help understanding your obligations, our family law team can guide you through the process. Contact us today for a consultation—we’re here to help you find a fair and practical solution for your family.
