Section 7 Expenses in child support agreements refer to special or extraordinary expenses that go beyond the basic child support payments. These expenses are shared between parents based on their incomes and are meant to cover specific categories of a child’s needs, ensuring that the child receives adequate financial support for important aspects of their well-being. Let’s explore each category and explain the various payment methods.

Categories of Section 7 Expenses

1. Medical Insurance:
   This includes the costs of providing medical and dental insurance for the child, often through one or both parents' employer plans. It can also cover supplemental insurance for medical needs not covered by basic plans.

2. Child Care:
   Child care expenses include daycare, nannies, or babysitters necessary while a parent is working, attending school, or undergoing training. These costs are considered essential, especially for young children, and are shared by both parents.

3. Medical-Health Expenses:
   This category covers extraordinary medical costs that go beyond standard insurance coverage. Examples include orthodontics, physiotherapy, mental health therapy, prescription medications, and other health-related services that aren’t fully covered by insurance plans.

4. Extraordinary Educational Expenses:
   These expenses cover educational needs that are outside the regular schooling system. Examples include private school tuition, tutoring, specialized learning programs, or educational supports for children with learning disabilities. These costs can also extend to items like books, equipment, or technology required for school.

5. Post-Secondary Education:
   These are the expenses related to a child’s post-secondary education, such as tuition, accommodation, books, and other living expenses while attending college or university. These costs are often shared between the parents, taking into account both their financial ability and the child’s needs.

6. Extracurricular-Fitness:
   This category includes expenses for sports-related activities such as soccer, gymnastics, swimming, or any physical activity programs the child participates in. These expenses may cover registration fees, uniforms, equipment, and travel for competitions.

7. Extracurricular-Non-Fitness:
   These expenses refer to non-sporting activities such as music lessons, art classes, drama programs, or any other extracurricular activities the child engages in that are not fitness-related. This can also include costs for instruments, supplies, and program fees.

Paid to

Section 7 expenses can be paid to different entities, depending on the nature of the expense:

• Medical Insurance Provider: For premiums covering medical and dental plans.
• Child Care Provider: For services like daycare or babysitting.
• Medical Service Providers: For costs not covered by insurance (e.g., orthodontics, therapy).
• Educational Institutions: For private school tuition, tutoring, or university fees.
• Extracurricular Programs: For activities such as fitness clubs, sports teams, or music schools.

Payment Arrangements

1. Paid Up Front By:
   In some cases, one parent may pay the entire cost of a Section 7 expense up front, and the other parent reimburses them later. This method is common when large sums are required for tuition, medical procedures, or other substantial expenses.

2. Current:
   Payments are made for ongoing or current expenses, such as monthly daycare fees or extracurricular activity fees. This covers costs as they arise and are typically shared proportionally between the parents.

3. Future:
   These payments are made to cover future expenses that have been planned for, such as reserving funds for a child’s upcoming tuition or saving for a future medical procedure.

Pay Period Options

Parents can agree on different payment schedules for Section 7 expenses depending on what works best for their financial situations. The pay periods include:

• Daily: Used for ongoing or small daily expenses, though not common for larger Section 7 expenses.
• Weekly: Parents contribute on a weekly basis for regular activities like child care or extracurricular activities.
• Bi-Weekly: Payments are made every two weeks, which may align with the parent’s pay schedule and can help in spreading out costs.
• Bi-Monthly: Payments are made twice a month, often helpful for budgeting ongoing expenses.
• Monthly: A common payment arrangement where parents make monthly contributions toward Section 7 expenses like daycare fees, tuition payments, or extracurricular activities.
• Quarterly: Payments are made every three months, which might be suitable for less frequent expenses such as quarterly tuition installments or seasonal sports fees.
• Yearly: This is used for large, one-time expenses that are paid annually, such as private school tuition or yearly extracurricular registration fees.

Conclusion

Section 7 expenses are an important aspect of ensuring that a child’s special and extraordinary needs are met in a fair and balanced way. Parents have flexibility in how they share these expenses, based on their financial ability and the child’s needs. Whether using Fixed or Reconciled methods, parents can arrange payments to be made upfront or on a recurring basis, depending on what works best for both parties.

Each of these categories and payment methods should be clearly defined in the child support agreement to avoid disputes and ensure that the child continues to receive the support necessary for their development and well-being