Section 7 Expenses: What Counts as an Extraordinary Expense
The monthly child-support table amount is not always the entire child-support obligation.
Some costs relating to a child can be added on top of the basic table amount. These are commonly called section 7 expenses, after section 7 of the Child Support Guidelines.
But not every expense for a child qualifies.
The first question is whether the expense falls within one of the categories recognized by the Guidelines. The second is whether it is necessary in relation to the child's best interests and reasonable considering the parents' and child's means and the family's spending pattern before separation.
And despite the phrase “special or extraordinary expenses,” not every section 7 expense actually has to satisfy the legal definition of “extraordinary.”
That distinction matters.
What Expenses Can Qualify Under Section 7?
Ontario's Child Support Guidelines identify six categories of expenses that can potentially be included in addition to basic child support:
Childcare expenses incurred because of the employment, illness, disability, or education or employment training of the parent with the majority of parenting time;
The portion of medical and dental insurance premiums attributable to the child;
Health-related expenses exceeding insurance reimbursement by at least $100 annually, including qualifying expenses such as orthodontics, counselling, physiotherapy, prescriptions, hearing aids and glasses;
Extraordinary primary or secondary school expenses or other educational programs addressing the child's particular needs;
Post-secondary education expenses; and
Extraordinary extracurricular expenses
The wording of those categories is important.
Only educational expenses under the fourth category and extracurricular expenses under the sixth category are expressly required to be “extraordinary.”
What Does “Extraordinary” Actually Mean?
An extracurricular activity is not automatically extraordinary simply because it is expensive.
Likewise, private-school tuition or another educational expense does not automatically qualify because the parents disagree about whether it is affordable.
The Guidelines first ask whether the expense is more than the parent seeking contribution can reasonably cover, considering that parent's income and the amount of child support they receive.
If that does not resolve the question, the court can consider factors including the amount of the expense relative to income, the nature and number of activities or educational programs, the child's special needs or talents, the overall cost and other similar circumstances.
That means the same extracurricular expense can be treated differently in two families.
A competitive hockey program involving registration, equipment and travel might be manageable as an ordinary expense for one household while being extraordinary for another.
The question is not simply:
“Is this expensive?”
It is:
“Is this an extraordinary expense in the circumstances of this child and these parents?”
Do All Section 7 Expenses Have to Be Necessary and Reasonable?
Yes.
Even where an expense falls within one of the listed categories, section 7 requires the court to consider both its necessity in relation to the child's best interests and its reasonableness in relation to the family's financial circumstances and prior spending pattern.
For example, an extracurricular activity might genuinely benefit a child but still raise questions about whether the particular cost is reasonable given the parents' incomes.
Likewise, an expensive educational program may be easier to justify where it addresses a documented need of the child than where it is simply one parent's preferred option.
The analysis is therefore more than checking whether the receipt fits into a category.
Are Childcare Expenses Automatically Section 7 Expenses?
Childcare can qualify where it is incurred because of the employment, illness, disability, education or employment training of the parent with the majority of parenting time.
That might include daycare required so that a parent can work or attend employment-related education.
But ordinary babysitting chosen for convenience does not necessarily fall within the same rule.
Parenting arrangements also matter.
Where each parent has at least 40% of parenting time, child support is determined under the shared-parenting provisions, which require consideration of the parents' table amounts, increased costs of shared parenting and the overall circumstances of the parents and child. The analysis should therefore not always be reduced to mechanically applying the ordinary section 7 formula used in a majority-parenting arrangement.
What Medical and Health Expenses Can Qualify?
The Guidelines distinguish between insurance premiums and uninsured health expenses.
The portion of medical and dental insurance premiums attributable to the child can qualify.
Health-related expenses can also qualify where they exceed insurance reimbursement by at least $100 annually.
The regulation specifically identifies examples including orthodontic treatment, professional counselling, physiotherapy, occupational therapy, speech therapy, prescription drugs, hearing aids, glasses and contact lenses.
The calculation should therefore account for available insurance before parents determine what remains to be shared.
Are Braces Always a Section 7 Expense?
Orthodontic treatment is specifically identified in the Guidelines as a potential health-related section 7 expense where the applicable requirements are met.
But the practical issue can still involve more than whether braces appear on the list.
The parents may need to know what insurance will cover, whether different treatment options are available, what the net cost will be and whether the proposed treatment is necessary and reasonable in the circumstances.
This is where clear communication before a significant expense is incurred can be valuable.
What About School Expenses?
Ordinary school expenses do not automatically become section 7 expenses simply because a parent receives an invoice.
For primary or secondary education, the Guidelines refer specifically to extraordinary expenses, including extraordinary expenses for educational programs that meet a child's particular needs.
Whether tuition, tutoring, specialized programming or another educational expense qualifies depends on the statutory test.
The child's particular needs, the cost, the parents' incomes, the amount of table support and the family's overall circumstances can all matter.
Are University and College Expenses Section 7 Expenses?
Post-secondary education is expressly included as its own section 7 category. Unlike primary or secondary educational expenses, the statute does not use the word “extraordinary” for post-secondary education.
That still does not mean every dollar of university or college expenses is automatically divided between the parents.
The court considers necessity and reasonableness, and the child's own contribution is relevant when determining what amount the parents should share.
Justice Canada's guidance also recommends considering loans, scholarships and other resources available to the child when determining the expense.
How Are Section 7 Expenses Shared Between Parents?
The guiding principle under the Guidelines is that qualifying expenses are shared in proportion to the parents' respective incomes, after first deducting any contribution from the child.
For example, if one parent's applicable income represents 60% of the parents' combined income and the other's represents 40%, a qualifying expense may generally be divided on that basis.
But the calculation should normally be done on the net expense, not simply the amount appearing on the original invoice.
Why Is the Net Cost Important?
The Guidelines require the court to take into account subsidies, benefits, income-tax deductions and tax credits related to the expense, as well as eligibility to claim them.
Suppose childcare costs $10,000 annually but one parent receives a subsidy or tax benefit connected to the expense.
Simply dividing the original $10,000 invoice may not reflect the actual economic cost.
The same issue can arise with health expenses covered partly by insurance.
The amount to be shared should reflect the financial benefit associated with the expense where the Guidelines require it to be considered.
Do Parents Have to Agree Before a Section 7 Expense Is Incurred?
Not every section 7 dispute can be answered by a universal rule that says “no consent, no reimbursement.”
The Guidelines themselves focus on whether the expense qualifies, whether it is necessary and whether it is reasonable.
But a separation agreement can create a clear process for advance consultation and approval.
For planned expenses, the agreement might require a parent to provide the nature and anticipated cost of an expense before committing to it, give the other parent a defined period to respond and explain how disagreements will be addressed.
Emergency medical care obviously raises different considerations from signing a child up for a new competitive sports program.
That distinction should be reflected in the drafting.
What Should a Section 7 Clause Address?
A useful section 7 clause should do more than say:
“Parents will share special and extraordinary expenses proportionately to income.”
It can also explain how expenses will be proposed, documented and reimbursed.
That may include defining which known recurring expenses are already agreed upon, how advance consultation will work for new discretionary expenses, when receipts must be provided, when reimbursement is due, how insurance or tax benefits will be accounted for and how the parents will update their income information.
Justice Canada's child-support guidance similarly recommends identifying the particular expense, its cost, each parent's contribution and when payment is due. Clearer terms can reduce later misunderstandings and make enforcement easier where necessary.
What If One Parent Incurs an Expense Without Consulting the Other?
The answer depends on the expense and the wording of the agreement or order.
If an agreement expressly requires advance consent for a particular discretionary expense, failing to follow that process may become important.
But absence of advance consultation does not necessarily answer the legal question in every case.
For example, necessary medical treatment may present very different circumstances from an optional extracurricular program selected without discussion.
The better drafting approach is to distinguish planned discretionary expenses from urgent or necessary expenses, rather than relying on a single consent rule for everything.
Do Section 7 Percentages Stay the Same Forever?
Not necessarily.
If expenses are being divided proportionately to income, changes in either parent's income can change their respective shares.
A 60/40 allocation that was accurate when the agreement was signed may no longer reflect the parents' incomes several years later.
This is why current financial disclosure matters.
Ontario's Child Support Guidelines already contain annual income-disclosure requirements for child-support orders and for domestic contracts or other written agreements where income information was used to determine the child-support obligation, subject to the specific terms of the regulation and any permitted agreement otherwise. The disclosure generally includes the most recent tax return and Notice of Assessment or Reassessment, as well as updated information about section 7 expenses where applicable.
A well-drafted separation agreement can still make the practical process clearer by setting out the date and method for exchanging that information and recalculating the percentages.
Should Parents Recalculate Section 7 Shares Every Year?
Where the arrangement uses proportionate sharing, reviewing the underlying incomes regularly can prevent an outdated percentage from continuing indefinitely.
The agreement can specify when the calculation occurs—for example, after each parent has received their Notice of Assessment—and when a revised proportion becomes effective.
It can also deal with more complicated circumstances such as self-employment, fluctuating income or outstanding reassessments.
The goal is not simply annual paperwork.
It is to make sure the percentage being applied to expenses still reflects the incomes it was supposed to represent.
Are Extracurricular Activities Always Shared?
No.
This is one of the most common misunderstandings about section 7.
Extracurricular expenses have to qualify as extraordinary under the Guidelines before they fall within that section.
Ordinary recreational expenses may be expected to be covered through the regular child-support framework.
Whether an activity crosses into section 7 depends on the cost and the family's circumstances, including the child's particular needs or talents.
A $300 activity and a $12,000 competitive program should not automatically receive the same legal treatment simply because both are extracurricular.
What Is the Best Way to Avoid Future Section 7 Disputes?
Start by separating three questions:
Does the expense legally qualify?
What is its true net cost?
What process will the parents use to approve, document and reimburse it?
Those questions are more useful than simply writing that parents will “split extras.”
A detailed section 7 provision can establish expectations before the orthodontic treatment begins, the university tuition is due or the registration deadline for an expensive activity arrives.
Frequently Asked Questions
What is a section 7 expense in Ontario?
A section 7 expense is a qualifying special or extraordinary expense that may be payable in addition to basic table child support. The Guidelines identify specific categories including childcare, certain insurance and healthcare costs, qualifying education expenses, post-secondary costs and extraordinary extracurricular expenses.
Are all section 7 expenses “extraordinary”?
No. The statutory definition of “extraordinary expenses” specifically applies to qualifying primary or secondary education expenses and extracurricular activities.
Are extracurricular activities always section 7 expenses?
No. The extracurricular expense must qualify as extraordinary under the test in the Guidelines.
Are university expenses section 7 expenses?
Post-secondary education expenses are expressly listed under section 7, subject to the broader requirements of necessity and reasonableness.
How are section 7 expenses divided?
The guiding principle is proportional sharing based on the parents' respective incomes after deducting any contribution from the child. Applicable subsidies, benefits and income-tax deductions or credits must also be considered.
Are medical expenses section 7 expenses?
Qualifying health expenses can be. The Guidelines refer to health-related expenses exceeding insurance reimbursement by at least $100 annually and give examples including orthodontics, counselling, prescriptions and glasses.
Can a parent demand reimbursement without providing a receipt?
The answer can depend on the agreement or order. A clear section 7 provision should establish what proof is required and when reimbursement is due.
Should section 7 percentages be updated when income changes?
If expenses are being shared proportionately to income, current financial information matters. Ontario's Guidelines contain annual disclosure provisions for many child-support orders and agreements.
Start With Clear Financial Information
Section 7 disputes are easier to manage when parents know which expenses qualify, what the net cost is and how their respective shares will be calculated.
If you are separating and organizing child support, parenting and financial disclosure, Willing Law's Separation Checklist can help you identify the documents and information worth gathering before these issues are finalized.
Download the Separation Checklist and use it as a starting point for the financial decisions ahead.
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This article provides general legal information only and is not legal advice. Reading it does not create a solicitor-client relationship.
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