Navigating Section 7 expenses in family law can be challenging for parents. These expenses cover significant child-related costs that go beyond typical child support.
Definition of Section 7 Expenses
Section 7 expenses are costs considered necessary and reasonable that exceed basic child care. They include “special or extraordinary” expenses for the child. Section 7 expenses typically cover costs such as:
- Daycare
- Extracurricular activities
- Educational expenses
These costs are shared proportionately between parents based on their incomes. The court assesses the necessity and reasonableness of these costs.
Determining ‘Special or Extraordinary’ Expenses
The term “special or extraordinary” varies by case. Courts decide based on the child’s needs, family circumstances, and financial capacity of each parent. Such expenses often include:
- Private school tuition
- Medical costs not covered by insurance
- Certain extracurricular activities
Courts have discretion in determining what is “extraordinary.” Parents should consult a lawyer to navigate these decisions.
Parental Disputes Concerning Section 7 Expenses
Section 7 expenses, which go beyond table child support, can often lead to challenges for parents. When one parent expects the other to contribute to the costs, then they should seek the other parent’s agreement before incurring the cost..
However, disagreements can arise when one parent believes an expense is unnecessary or too expensive.
The starting to try to resolve this is to share information. This can include the recommendations of a professional about the need for the expense, or research about the typical rate for the expense and why the one being proposed is reasonable for the particular child(ren). It can also include consulting legal counsel to find out whether the courts have already resolved the argument that the parents are having.
If parents still can’t reach an agreement on this, then mediation is a reasonable next step. With the help of a neutral third party, parents can discuss their concerns and work toward a resolution.
If mediation doesn’t resolve the dispute, the issue may proceed to court. The court will determine if the expense qualifies as a section 7 expense by considering factors such as:
- Family finances
- The necessity of the expense
- Whether the cost is reasonable
Pros and Cons of Going to Family Court
Pros:
- A clear, legally binding decision is made by the court.
- It provides a resolution when parents cannot reach an agreement on their own.
- The process ensures all relevant financial factors and the child’s best interests are considered.
Cons:
- Court proceedings can be time-consuming and costly.
- It may increase conflict between parents, which can affect the overall co-parenting relationship.
- The final decision is out of the parents’ control and left to the judge’s discretion.
Tips for Success in Court:
Having clear documentation and proof of the expense, such as receipts, quotes, or explanations of necessity, can significantly strengthen a parent’s case.
Adjustments to Section 7 Expenses Over Time
Adjustments to Section 7 expenses often occur due to changing financial circumstances or the child(ren)’s needs. For example, a 15 year old no longer needs daycare, but may need tutoring that a 3 year old did not. These factors can lead to variations in the way these special expenses are shared between parents, ensuring that the child’s needs are met effectively and fairly over time.
Changes in Financial Circumstances
Financial circumstances can shift over time, impacting how Section 7 expenses are shared. If a parent’s income increases or decreases significantly, it may require a review of the child support agreement to ensure contributions remain fair and manageable.
Common reasons for re-evaluating Section 7 expenses include:
- Changes in employment (job loss, career changes, promotions)
- Unexpected financial hardships (e.g., medical issues, economic downturns)
- End of spousal support payments
The Child Support Guidelines create a law that requires parents to exchange their financial information every year. This allows parents to make informed choices about whether an adjustment to the proportionate sharing of Section 7 expenses should occur for the coming year.
What Happens when Incomes Change
Parents should be proactive about complying with their obligations under the Child Support Guidelines to exchange financial information every year. Trying to hide increases in income almost always backfires, whereas decreases in income can negatively affect the kids (amongst many others) and should be addressed as soon as possible.
The first thing that happens when incomes change is that the proportionate share of each parent’s section 7 expense changes. For example:
| Old Incomes | Old Percentages | New Incomes | New Percentages | |
| Parent 1 | $70,000.00 | 70% | $150,000.00 | 75% |
| Parent 2 | $30,000.00 | 30% | $50,000.00 | 25% |
If the parents can’t agree on how to calculate these amounts, or don’t believe the other is honestly disclosing, they can apply to the courts for a determination of these issues. However, if parties agree they should prepare a new agreement (even a one page one) to reflect these changes.
Updating the Child Support Amount
Updating the child support amount involves reviewing the basic monthly payments based on the Federal Child Support Guidelines. As a child grows, their living expenses often change, and aligning support with current needs helps ensure all financial responsibilities are met.
When Updates May Be Necessary
- Cost of living: Inflation or increases in the cost of living may require periodic adjustments.
- Changes in residence: If the child moves to live primarily with the other parent, support payments may need to be re-evaluated.
- Parental income changes: Significant increases or decreases in income can impact the fair division of support.
Frequently Asked Questions
How are Section 7 expenses determined and divided among parents?
Section 7 expenses are determined based on specific guidelines and the financial situation of each parent. Typically, parents share these costs proportionate to their incomes. If one parent earns more, they typically pay a larger share.
What qualifies as a Section 7 expense for child support purposes?
Qualifying expenses under Section 7 include daycare, medical costs not covered by insurance, and extracurricular activities. Expenses must be special or extraordinary and essential for the child’s well-being or development.
Are parents required to share the costs of extracurricular activities as per Section 7?
Yes, extracurricular activities can be considered under Section 7 if they are necessary and reasonable. Parents must usually agree on these activities, and they should support the child’s interests or educational goals.
Can one parent be exempt from contributing to Section 7 expenses?
In certain cases, a parent may be exempt from contributing to Section 7 expenses. Exemption might occur if the expense is not in line with Section 7 guidelines or if there’s a significant financial disparity.
What steps should be taken if parents disagree on a Section 7 expense?
When parents disagree, they should first try to resolve the issue through discussion or mediation. If no agreement can be reached, legal advice or court intervention might be necessary to determine the appropriateness of the expense.
