Section 7 of the Federal Child Support Guidelines allows courts to order parents to share certain special or extraordinary expenses on top of the base table amount of child support. The calculation is deceptively technical: it requires determining what qualifies, adjusting for tax consequences, and splitting the net cost in proportion to each parent's income. Each step has case law behind it.
What Qualifies as a Section 7 Expense
Not every child-related cost triggers section 7. The onus falls on the parent claiming the expense to prove two things: first, that the expense falls within one of the enumerated categories in s. 7(1), and second, that it is reasonable and necessary given the parents' financial circumstances and pre-separation spending patterns (Park v. Thompson, 2005 CanLII 14132 (ON CA)).
The enumerated categories are:
- Childcare expenses incurred because of employment, illness, disability, or education of the custodial parent — daycare, before- and after-school care, and summer camps needed for the parent to work.
- Medical and dental insurance premiums attributable to the child and not covered by an employer plan.
- Uninsured health-related expenses — medical, dental, orthodontic, and optical costs not covered by insurance, provided they exceed $100 per year or are extraordinary in the circumstances.
- Extraordinary extracurricular activities that allow the child to pursue a special interest or talent. Courts distinguish between routine and extraordinary expenses, though the line is often fact-specific. In Thomas-Bakker v. Bakker (2018), recreational soccer was found not to be extraordinary. Competitive sports, elite training, and serious music instruction generally qualify, though courts may cap unreasonable amounts — courts have reduced competitive hockey costs where they exceed what is reasonable given the family's means and pre-separation spending patterns.
- Primary and secondary education expenses where private school or specialized programs are warranted by the child's needs or the family's historical standard of living.
- Post-secondary education expenses including tuition, books, and residence. In Lewi v. Lewi, 2006 CanLII 15446 (ON CA), the Ontario Court of Appeal held that adult children should generally make reasonable contributions toward their own post-secondary costs. The child's own resources reduce the net expense shared between parents.
Step 1: Determine the Gross Cost
Begin with the total annual cost of each qualifying expense. For childcare, this is the full amount paid to the provider. For extracurricular activities, include registration fees, equipment, travel, and related costs. Courts expect a complete accounting.
Subtract Third-Party Contributions
Any portion covered by insurance, government subsidies, or contributions from other family members comes off first. Only the net out-of-pocket cost is subject to sharing.
Step 2: Calculate the Net Cost After Tax Adjustments
This is where most errors occur. Certain section 7 expenses carry tax consequences that must be factored in before the cost is shared.
Calculate child support, spousal support, and property division in minutes.
Childcare is tax-deductible, typically by the lower-income parent. The deduction reduces the real cost substantially. Uninsured medical expenses may generate a medical expense tax credit, calculated at 15% federally plus the applicable provincial rate on eligible amounts exceeding a threshold. Extracurricular and education costs are generally not deductible — the children's fitness and arts credits were eliminated in 2017.
Step 3: Share the Net Cost Proportionally
The net cost is split between parents in proportion to their respective guideline incomes:
Each parent's share = Net cost × (Parent's income / Combined income)
For this calculation, "income" means the amount determined under the Guidelines — typically line 15000 of the tax return, subject to Schedule III adjustments.
Worked Example: Childcare in Shared Parenting
John earns $166,083. Shantel earns $60,528 (guideline income $61,375). One child, shared parenting. Gross childcare cost: $2,222 per year.
- Tax adjustment: The childcare deduction generates $1,022 in combined federal and provincial tax savings — roughly a 46% marginal rate — reducing the net cost to $1,200.
- Proportional sharing: Based on guideline incomes ($166,083 and $61,375), John's share is approximately 73%. After accounting for spousal support adjustments, the effective split shifts to roughly 66/34.
- Result: John's annual share is approximately $790. Shantel's is approximately $410. John pays approximately $66 per month toward section 7 on top of base child support.
Failing to account for the tax adjustment would have overstated each parent's contribution by nearly half.
The Ability-to-Pay Factor
Proportional sharing is the default, but it is not absolute. Section 7(3) provides that the court may adjust each parent's contribution after considering each parent's ability to pay — their income, assets, and overall financial position. Courts do not simply apply the formula mechanically. A parent at the poverty line will not be ordered to contribute proportionally to elite hockey fees simply because the expense is "extraordinary."
Section 7 in Shared Custody Arrangements
When parents share custody (each having the child at least 40% of the time), section 7 expenses interact with the section 9 shared custody analysis. In Contino v. Leonelli-Contino, 2005 SCC 63, the Supreme Court of Canada held that shared custody support requires a fact-specific analysis considering the table amounts for each parent, the increased costs of shared parenting, and each party's means and needs. The proportional sharing of section 7 expenses in these cases should account for the fact that both parents may be incurring costs during their respective parenting time.
Common Pitfalls
- Using gross costs instead of net. Failing to calculate the childcare deduction is the single most common error. Always compute the tax benefit before sharing.
- Claiming non-qualifying expenses. Routine activities that do not meet the "extraordinary" threshold should not be claimed. Base table amounts are intended to cover ordinary costs.
- Unilateral enrollment decisions. The Guidelines do not impose a statutory consent requirement for section 7 expenses (Ford v. Cassel, 2023 ONSC 1553). However, whether the other parent was aware of and consented to the expense is a factor in the reasonableness analysis. Unilaterally enrolling a child in an expensive program and then seeking contribution makes it less likely the court will order cost-sharing.
- Forgetting to update annually. Section 7 expenses change as children grow. Daycare costs disappear, new activities begin, tuition arises. Calculations should be reviewed at least annually.
- Ignoring the spousal support interaction. As spousal support changes, each parent's taxable income shifts, which in turn changes both the tax savings on deductible expenses and the proportional shares. This is a circular calculation that must be solved iteratively.
Using Divorcepath for Section 7 Calculations
Divorcepath's child support calculator handles all of these steps automatically. Enter the gross expense amounts and the calculator applies the appropriate tax adjustments based on each parent's actual income and tax situation, computes the proportional share, and resolves the circular interaction with spousal support. The result reflects current tax law without manual arithmetic.
Try it at divorcepath.com/calculator.
