What are Section 7 special or extraordinary expenses?
During a marriage, both parents generally provide financial support for their children and provide provisions for the children's financial needs. When spouses separate or divorce, and children are involved this obligation continues. Even if the children remain in the custody of only one party, the majority of the time both parents are required to continue supporting their child, or children financially.
The financial support that both parents are legally obligated to provide is referred to as child support. The Child Support Guidelines calculate how much each parent is obligated to contribute to support the child or children.
Child support is divided into two different components: the monthly ongoing basic payment and an amount for what is known as section 7 special or extraordinary expenses. These special or extraordinary expenses are addressed in section 7 of the Child Support Guidelines.
The basic or the table amount of child support deals with the amount of money a parent is obligated to pay for a child’s day-to-day expenses. The non-residential parent is obligated to pay child support based on the province in which the child resides, based on his or her income, and based on the number of children receiving the support. The Child Support Guidelines contain Tables, which outline the fixed amounts based on these factors.
Child support is paid in after tax dollars, meaning that the recipient is not required to pay tax on the amount, and the parent paying the support does not receive any tax breaks on the amount.
Whereas, the basic monthly amount outlined in the Child Support Guidelines is meant to cover the support payers portion of daily needs, Section 7 of the Child Support Guidelines address the special or extraordinary expenses that go beyond the regular daily needs of a child. Special or extraordinary expenses can include, but are not limited to, private school expenses, recreational activities such as competitive dance or hockey, medical and dental expenses, childcare, and post-secondary expenses. When it comes to special or extraordinary expenses, both parents are required to proportionately share the cost. The amount each is obligated to provide is relative to their respective salaries.
For more information of child support and to schedule a consultation, contact Krol & Krol at 905.707.3370.
