Child
Support and Section 7 Expenses
Prior to the introduction of the
Child Support Guidelines on May 1,
1997 there was plenty of
uncertainty regarding child
support. There is still some
uncertainty but a lot less.
If there was a payor earning
$40,000.00 per annum we would argue
about what he or she should pay in
child support. The payor’s lawyer
would go low and the recipient’s
lawyer would go high and sometimes
a Judge had to make a decision -
and the decision could be different
depending on the Judge. In
hindsight, this all seems a bit
silly. It was a waste of resources.
The federal government introduced
legislation to deal with this. So,
now if a payor earns $40,000.00 per
annum we know what he or she will
pay in child support for one child
- $367.00 per month.
They are called "Guidelines" so
clients think that there is some
"wiggle room". However, often that
is not the case as the table amount
of child support is rubber stamped
by courts.
If the payor can show that the
payment will cause undue hardship
then the amount can be reduced.
However, it is a very difficult
test. All child support payments
cause hardship - the question is
whether it is undue. As part of
this test the law looks at the
standard of living in each
household.
The child support for payors who
earn in excess of $150,000.00 per
annum is not necessarily in
accordance with the Guidelines but
the case law has not permitted many
reductions for this exception.
The Guideline amounts were first updated
in 2006 and have been updated again
as of December 31, 2011. A lot of people
are not
aware of these update.
The table amount of child support
represents the payor’s contribution
to the child’s expenses in the
recipient’s home e.g. shelter,
clothes, etc.
There is another category of
expenses called section 7 expenses
(you guessed it because it is in
section 7 of the Guidelines).
Examples, are daycare expenses for
the custodial parent to go to work,
health expenses, tutoring,
competitive hockey, post-secondary
expenses etc. If there is an
expense that fits into section 7
then that expense is shared in
proportion to the income of the
parties. If they earn the same
income then they pay 50% of the
expense. If they earn more than his
or her spouse then he or she pays a
higher percentage of the expense.
See the links
section for a link to the Child
Support Guidelines.
I have information that I can send
on Retroactive Child Support and
more in depth information on
section 7 expenses.
|
|
|