“I am not the bank!” - Children’s special and extraordinary expenses

Jack sometimes feels like he is considered a banker as the kids always need something new and Jill keeps on asking for money.   Now, it is braces and bikes.  Jack considers that the monthly child support he gives Jill should be enough for her to cover all those expenses.  Now that they are separated, he also has his own housing expenses to pay and there’s no way he is going to go into debt because Jill is unable to properly manage her money.   Jack strongly feels that it is time for Jill to learn how to live within her means.  After all, he is not a bank. 

Often, custodial parents are blamed by the ex for spending too much money on the children.  Under Canadian Federal and Provincial laws, children are entitled to financial support from both parents even if they are separated or divorced.  After all, it does take money to raise children and the expenses just get bigger as the kids get older. 

In Canada, child support is made of two components:  the basic table amount (meant to cover all basic needs) and the contribution to “special expenses” (meant to cover specifically defined types of expenses).  The basic amount is determined using the payor’s gross annual income in accordance with the Federal Child Support Guidelines.  Click on this link to access the federal child support calculator:  http://www.familylawinabox.com/en/resources_child_support.php 

Most disagreements in the area of child support arise with regards to special expenses, to which both parents must contribute in proportion to their respective income.  For example, if mom earns $25,000 per year and dad earns $75,000 per year, mom would have to contribute 25% towards the cost of special expenses and dad would have to contribute 75%.

As set out in section 7 of the Guidelines there are six specific categories of special expenses:

1. Child care (i.e. daycare)

2. The portion of medical and dental insurance premiums paid by either parents to cover the children (that portion that is paid by the employee)

3. Health-related expenses exceeding $100 a year (i.e. orthodontics, counselling, prescription drugs)

4. Extracurricular activities (i.e. horseback riding, hockey, music)

5. Primary or secondary education programs (for example, tutoring or the cost of a special software for a child with disability)

6. Post-secondary education costs

As usual, family law is not as simple as 1-2-3 and special rules apply to special expenses.   Even if an expense fits in one of the categories described above it does not mean that the parents must necessarily contribute to it. The expense has to be necessary for the child, and reasonable in light of the parent’s financial means.  Extracurricular activities or primary and secondary educational costs also need to be “extraordinary”.  Confused yet?  To help you understand your rights and obligations we have created a program entitled: « What is a special or extraordinary expense?”  which you may access by clicking here for more information.

While this is not specified in the Guidelines, the best practice for parents is to consult one another BEFORE an expense is incurred for the children, unless the expense is absolutely necessary (like child care or medical expenses).  Judges frown at parents who spend money on special expenses without requesting the other parent’s permission and then try to collect.  If you do that, a judge may deny you the reimbursement.