Under Section 7 of the Federal Child Support Guidelines, special and extraordinary expenses (like braces, tutoring, or daycare) are shared by both parents in Prince Edward Island. These costs are usually divided proportionately based on each parent’s income, not split 50/50. You must consult your co-parent and provide receipts to legally claim these expenses.
Raising a child is expensive, and basic child support rarely covers everything. While the standard monthly table amount is designed to pay for everyday necessities like groceries, clothing, and rent, children often have significant additional needs. This is where Section 7 of the Federal Child Support Guidelines comes into play. It ensures that large, unavoidable expenses are fairly shared between separated parents.
Navigating the rules around what actually qualifies as an extraordinary expense can lead to heated arguments between ex-partners. A common dispute is whether an expensive hockey league or a private music lesson is truly necessary. To avoid endless conflict and protect your financial stability, finding a knowledgeable local family lawyer through our directory is highly recommended. Below is exactly how Section 7 expenses work in PEI. 💰
Step-by-Step Process in Prince Edward Island
Whether your child is enrolled in a specialized sports program in Charlottetown or requires expensive dental work in Summerside, the legal framework is consistent. The courts focus on ensuring the child’s lifestyle does not drastically drop after the separation.
Step 1: Identify Valid Section 7 Expenses
Not every bill counts as a special expense. Under the law, valid Section 7 costs generally include childcare expenses incurred as a result of employment or schooling, medical/dental insurance premiums for the child, health-related expenses exceeding regular coverage (like braces or prescription glasses), extraordinary extracurricular activities, and post-secondary education tuition.
Step 2: Exchange Income Information
To figure out who pays what, both parents must fully disclose their incomes. You will typically exchange your most recent Canada Revenue Agency (CRA) Notice of Assessment and your last few paystubs. This transparency is legally required every single year if you are sharing Section 7 expenses. 💵
Step 3: Calculate Your Proportionate Share
Section 7 expenses are almost always divided proportionately. For example, if your total combined parental income is $100,000 CAD (you make $60,000 and your ex makes $40,000), you are responsible for paying 60% of the child’s braces, and your ex pays 40%. It is very rarely a simple 50/50 split unless you both earn exactly the same amount.
Step 4: Keep Receipts and Communicate
You cannot simply hand your ex-partner a massive bill at the end of the year without warning. You must consult with them before incurring a large expense (unless it is a strict medical emergency). Always keep the original invoices and receipts, and provide copies to your co-parent promptly so they can reimburse their share. 📝
How Much Does it Cost in Prince Edward Island?
If your ex-partner refuses to pay their proportionate share of special expenses, you may have to pursue legal action. 💰
- Lawyer Fees: Having a lawyer negotiate and draft a settlement regarding Section 7 arrears typically costs between $1,000 and $2,500 CAD.
- Court Filing Fees: Applying to the Supreme Court of Prince Edward Island to enforce support usually incurs fees around $100 to $200 CAD.
- Maintenance Enforcement Program (MEP): Registering a valid court order or agreement with the PEI MEP is generally free. The government agency will collect the Section 7 payments on your behalf.
How Long Does the Process Take?
If you and your co-parent communicate well, calculating and reimbursing Section 7 expenses takes mere days. However, if you have to file a motion in the PEI court system to force a non-compliant parent to pay for their share of braces or university tuition, expect the legal process to take anywhere from 3 to 8 months. ⏱
Base Child Support vs. Section 7 Expenses
| Type of Expense | Covered by Base Child Support | Covered by Section 7 |
|---|---|---|
| Groceries and Rent | Yes. | No. |
| Daycare / Before-School Care | No. | Yes, if needed for work or school. |
| Basic School Supplies & Clothing | Yes. | No. |
| Orthodontics (Braces) | No. | Yes (portion not covered by insurance). |
Frequently Asked Questions (FAQ)
Can my ex sign our child up for expensive sports and force me to pay?
Generally, no. For an extracurricular activity to be considered a mandatory Section 7 expense, it must be extraordinary relative to your combined incomes, and both parents usually need to agree to it in advance. A judge will not force a low-income parent to pay for an elite travel hockey team they cannot afford.
Do we deduct the child tax benefit before calculating Section 7?
When calculating the net cost of an expense like daycare, you must first deduct any subsidies, insurance reimbursements, or specific tax deductions related to that expense before dividing the remaining out-of-pocket cost between the parents.
Are university tuition and residence considered Section 7?
Yes, post-secondary education is a classic Section 7 expense. However, adult children are expected to contribute to their own education through summer jobs, student loans, or scholarships. The parents will only share the remaining shortfall proportionately.
What happens if my ex refuses to show me their CRA tax return?
Under the Federal Child Support Guidelines, parents paying or receiving Section 7 expenses have a legal obligation to disclose their income annually. If they refuse, you can apply to the Supreme Court of PEI to impute their income (have a judge assign them a high income) and force disclosure, often with strict cost consequences against them.
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