1. What Are Section 7 Expenses?
Section 7 of the Federal Child Support Guidelines establishes a framework for sharing special or extraordinary expenses beyond basic child support. While the table amount of child support covers regular day-to-day costs of raising children, Section 7 addresses additional expenses that are either necessary due to the child's particular needs or that benefit the child's development and wellbeing.
These expenses are treated separately because they can vary significantly between families and often involve substantial costs that go beyond what the basic support tables contemplate. The underlying principle is that both parents should contribute to these important expenses in proportion to their respective incomes.
Key Principle:
Section 7 expenses are shared proportionally based on each parent's income after deducting any applicable subsidies, benefits, or tax credits received for the expense.
In Alberta, courts and separated parents regularly deal with Section 7 expenses as part of comprehensive child support arrangements. Understanding how these expenses work is crucial for both parents to ensure their children continue to benefit from activities and services they enjoyed before separation, and to prevent financial disputes that can harm the co-parenting relationship.
2. Types of Expenses Covered
The Child Support Guidelines specifically identify several categories of expenses that may qualify as Section 7 expenses. However, an expense must be reasonable given the family's means and necessary for the child's best interests or consistent with the family's spending patterns before separation.
Childcare Expenses
- Daycare and nursery costs
- Before and after school care
- Summer camp (custodial purposes)
- Nanny or babysitter costs for work
- In-home childcare
Medical and Health Expenses
- Dental care not covered by insurance
- Orthodontics (braces, retainers)
- Vision care (glasses, contacts)
- Prescription medications
- Therapy and counselling
- Medical devices and equipment
Educational Expenses
- Private school tuition
- Tutoring services
- Educational assessments
- Special education programs
- Post-secondary expenses
- Educational supplies beyond basics
Extracurricular Activities
- Sports registration and fees
- Sports equipment
- Music lessons and instruments
- Dance classes
- Art programs
- Clubs and organizations
It is important to note that not every expense in these categories automatically qualifies. Each expense must meet the test of being reasonable in light of the family's circumstances and necessary for the child's best interests. A hockey program costing $10,000 per year might be reasonable for a family with high combined income but unreasonable for a family with modest means.
3. How Proportional Sharing Works
Section 7 expenses are shared between parents in proportion to their respective incomes. This ensures that both parents contribute fairly based on their ability to pay, rather than splitting costs equally regardless of income disparities.
Example Calculation
Parent A earns $80,000 per year and Parent B earns $60,000 per year. Their combined income is $140,000.
- Parent A's share: $80,000 / $140,000 = 57%
- Parent B's share: $60,000 / $140,000 = 43%
If hockey registration costs $2,000 per year:
- Parent A pays: $2,000 x 57% = $1,140
- Parent B pays: $2,000 x 43% = $860
Deducting Subsidies and Benefits
When calculating Section 7 contributions, you must first deduct any subsidies, benefits, or tax credits that offset the expense. For example:
- Child care subsidy from the Alberta government
- Children's Fitness Tax Credit (federal)
- Health insurance coverage for medical expenses
- Employer-provided childcare benefits
- Scholarships or bursaries for educational programs
The net expense after these deductions is what gets shared proportionally between the parents.
4. Getting Agreement on Activities
One of the most common sources of conflict between separated parents involves whether to enroll children in particular activities and who should pay. Most separation agreements and court orders require parents to agree before incurring significant Section 7 expenses.
Consent Requirements
A well-drafted separation agreement typically includes provisions such as:
- Both parents must consent before enrolling children in new activities
- Consent cannot be unreasonably withheld
- Activities the child was already participating in may continue without new consent
- A dollar threshold may require consent (e.g., any expense over $500)
- Time frames for responding to requests (e.g., 14 days)
Important Warning:
If you enroll your child in an expensive activity without the other parent's consent, you may be solely responsible for the cost. Courts generally will not force a parent to pay for expenses they did not agree to, unless the expense was necessary and reasonable in the circumstances.
What If You Cannot Agree?
When parents cannot agree on whether to enroll a child in an activity, several options exist:
- Discuss the benefits and concerns openly
- Consider the child's wishes and interests
- Use a mediator to facilitate discussion
- Consult with a parenting coordinator if one is appointed
- Apply to court for a determination
5. What Makes an Expense Reasonable?
The Child Support Guidelines require that Section 7 expenses be "reasonable" given the family's means and the spending patterns before separation. Courts in Alberta consider several factors when determining reasonableness:
Family Income Level
An expense that is reasonable for a family earning $300,000 combined may be unreasonable for a family earning $100,000. Courts look at whether the family can afford the expense without undue hardship.
Pre-Separation Spending
Activities the child participated in before separation are more likely to be considered reasonable. The child should not lose opportunities due to the parents' separation.
Child's Interests and Aptitude
Is the child genuinely interested in the activity? Do they have aptitude or talent that warrants investment? A child who excels at hockey may reasonably participate in higher-level programs.
Necessity vs. Luxury
Medical expenses are typically seen as necessary. Elite sports programs or expensive private schools may be viewed as discretionary depending on circumstances.
6. Resolving Disputes About Expenses
Disagreements about Section 7 expenses are common. When they arise, there are several approaches to resolution:
Informal Negotiation
The first step should always be direct communication. Share information about the proposed activity, including costs, schedule, and benefits to the child. Listen to the other parent's concerns and try to find common ground.
Mediation
A trained mediator can help parents work through disagreements about activities and expenses. Mediation is typically faster and less expensive than going to court, and allows parents to craft creative solutions that work for their family.
Parenting Coordinator
Some high-conflict families work with a parenting coordinator who has authority to make binding decisions on day-to-day parenting issues, including Section 7 expenses. This can be particularly helpful when parents frequently disagree.
Court Application
If other methods fail, either parent can apply to court for a determination. The court will consider whether the expense is reasonable and in the child's best interests. Courts generally expect parents to have attempted other resolution methods first.
7. Documentation and Tracking
Proper documentation is essential for managing Section 7 expenses effectively. Good record-keeping helps prevent disputes and provides evidence if enforcement becomes necessary.
What to Document
- All receipts for Section 7 expenses
- Registration forms and fee schedules
- Written communication about proposed activities
- Consent provided by the other parent
- Payment records showing who paid what
- Subsidy or benefit amounts received
Expense Sharing Methods
| Method | How It Works | Best For |
|---|---|---|
| Monthly Reconciliation | Parents share receipts monthly and settle the difference | Cooperative parents with variable expenses |
| Advance Payment | Each parent pays their share directly to the provider | Large, predictable expenses |
| One Parent Pays | One parent pays all, other reimburses their share | When one parent handles enrollments |
| Monthly Estimate | Set monthly amount based on estimated annual costs | Predictable, recurring expenses |
8. Enforcing Payment Obligations
When a parent fails to pay their share of Section 7 expenses as required by a court order or separation agreement, several enforcement options are available in Alberta.
Maintenance Enforcement Program (MEP)
Alberta's Maintenance Enforcement Program can enforce Section 7 expenses if they are included in a court order or filed agreement. MEP has significant powers including:
- Garnishing wages
- Seizing bank accounts
- Suspending driver's licenses
- Reporting to credit bureaus
- Seizing lottery winnings and tax refunds
Court Enforcement
You can also apply directly to court to enforce Section 7 obligations. The court may order payment of arrears plus interest and costs. In extreme cases, a parent who refuses to pay may be found in contempt of court.
Practical Tip:
Keep detailed records of all Section 7 expenses and payments. If you need to enforce, you will need to prove what was owed, what was paid, and what remains outstanding.