The Canadian government makes it clear, regardless of the status of your romantic relationship with your co-parent, if you have conceived a child, or played the role of standing in the place of a parent, then you are subject to Child Support obligations and Section 7 Expenses.
Part 1. Monthly Child Support Obligation
The purpose of Child Support is to establish an amount to maintain a reasonable standard of living for the child. The amount is payable monthly and is determined based on the government’s table projection of what is reasonable given several factors including:
- Gross Income of each Parent (as determined in line 15000 of your income tax return)
- Where the child physically resides (cost of living varies)
- Parenting Time (child spends more than 40% with Each parent)
Your Mediation Memorandum of Understanding agreement will document:
- Total Gross Income
- How much each parent should pay, and the offset if shared Child Support
- When and How obligation payments are satisfied
- An annual review date inclusive of terms for early review in situations of material change in circumstance (unemployment, inheritance, moves).
Part 2. Section 7 Expenses
Throughout raising a child, unforeseeable special and extraordinary expenses can come up. These expenses are addressed as Section 7 Expenses and are in addition to your child’s monthly Support obligation. These expenses are eligible if considered necessary to satisfy the child’s best interest and are within the parents’ reasonable financial capacity.
Some examples of such expenses could include:
- Child Care
- Daycare, School Travel Programming, Summer Camps
- Healthcare Interventions
- Orthodontics, eyeglasses, therapeutics
- Extra-curricular Activities
- Competitive sports, music, and art lessons
- Academic Programming
- Enrichment programs, tutoring, private school, post-secondary 1st degree.
Section 7 expenses are calculated from the total Gross Income of both parents and can be distributed by percentage. In Mediation, parents can negotiate the expense distribution to determine mutual benefit and, in turn, document it in the Memorandum of Understanding agreement.
Together we can identify your Child Support Obligation, how it can be satisfied, and how to move forward.
Each Child Support situation is unique and requires an individual assessment. Christine will walk you through the Federal guidance for table support and how to ensure your child’s best interests are financially satisfied to your mutual agreement.