Here’s a detailed explanation of the terms related to Section 7 Expenses
Section 7 Expenses are special or extraordinary expenses that go beyond basic child support and are shared between parents based on their incomes. These include costs for child care, medical care, extracurricular activities, education, and other needs not covered by basic child support. The document outlines how these expenses are split and paid between Cameron and Elisabeth.
Gross Special Expenses refer to the full costs of any Section 7 expenses before considering any benefits or tax deductions. These expenses include things like child care, medical care, education, and extracurricular activities.
This term refers to any adjustments in government benefits or employer-provided benefits that either reduce or increase the financial burden on the parents. If, for example, one parent receives additional child care subsidies or health benefits from their employer, these changes would affect how much they are expected to contribute towards Section 7 expenses.
Change in Taxes refers to any adjustments in a parent’s tax liabilities resulting from paying or receiving child support or Section 7 expenses. Child-related expenses can sometimes be tax-deductible or influence tax credits, which can reduce the actual financial impact of these costs.
Net Special Expenses are the final amount of Section 7 expenses after accounting for any changes in benefits or tax adjustments. This reflects the actual cost to the parents that needs to be shared, excluding any deductions or credits they may receive from benefits or taxes.
This refers to the total annual income used to calculate child support and the apportionment of Section 7 expenses between the parents. The incomes of both parents are considered to ensure a fair distribution of costs. The higher the income, the greater the share of responsibility for paying child support or Section 7 expenses.
Spousal Support refers to payments made by one spouse to the other after separation or divorce, usually to support the lower-income spouse. In this case, the spousal support calculation uses factors like length of marriage, income disparity, and each spouse’s financial needs.
This refers to how the incomes of both parents are divided to determine their respective shares of child support and Section 7 expenses. A higher income typically means a higher percentage of the costs will be covered by that parent.
This is the percentage of Section 7 expenses that each parent is responsible for, based on their income. It ensures that costs are divided fairly, according to each parent’s financial capacity.
This term refers to when one parent contributes to special expenses that the other parent has paid. For instance, if Elisabeth pays a large medical bill upfront, Cameron would contribute his share based on their agreed percentage split.
This is the total amount of Section 7 payments for special expenses that each parent is required to contribute annually. This amount is calculated based on the actual Section 7 expenses and their apportioning percentages.
This is the monthly breakdown of the annual Section 7 payment. It allows both parents to contribute their share of the expenses in smaller, manageable amounts each month.
The above terms are essential for understanding how Section 7 expenses are handled in child support agreements. They outline how special expenses for children, such as medical costs or extracurricular activities, are shared between parents based on their financial capacity. These payments are adjusted for changes in income, benefits, and taxes to ensure fairness for both parents.