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Disclosure required for Section 7 Calculations

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  • Disclosure required for Section 7 Calculations

    Our final divorce order is about two years old. The order wiped out any previous section 7 alleged arrears that we had been arguing about. Still now, though, there has been continuous conflict between my ex and myself regarding section 7 expenses.

    I am the CS payor, and Section 7's are to be split proportionately. Section 7's not enforced through FRO.

    The divorce order is, unfortunately, lacking in the specifics required to ensure both parties give proper disclosure, to enable us to do accurate calculations.

    Here's the issue:

    My ex has sent through requests in the past for money to pay for certain section 7 expenses. Prescription glasses, daycare, small $ extracurriculars.

    She asked that I pay for 1/2 of glasses. Ex states urgency, she has no benefits at work, not enough money to pay for glasses and then get reimbursed from me. I sent an email transfer for 1/2 of amount so she could go buy them for our daughter, with a request for a copy of the receipt.

    I have requested numerous times in writing for copy of the receipt, and get nothing. She accidently let out, a bit later, that she does have benefits at work. Lesson learned.

    So the next time a request for section 7 money came around, I respond that prior to making further payments I need the following disclosure, at minimum:

    1. Most recent T4 and notice of assessment.
    2. Actual receipts for any section 7 expenses they are claiming.
    3. Copy of health benefits plan from work, or letter authorizing me to have access to and speak to health benefits provider regarding coverage available to children, limits, and additional costs of having them on my ex's plan.
    4. Disclosure regarding amounts the other parent is receiving for D6's disability (CP has indicated they receive special funding on intake forms I received through health care disclosure I have obtained)

    I have supplied current T4 and offered to supply letter from employer stating that I don't have benefits available to me.

    Without this information from my ex, it is impossible to accurately calculate section 7's. I have been burned once, and don't think it is prudent to proceed any further without this information.

    Am I going too far, by refusing to pay until the disclosure is complete? Should I be paying the amounts she asks, then straightening it out on next year's amounts?

    Our agreement only states that "Section 7 expenses are to be agreed to in writing, in advance", and that "the amounts are to be split proportionate to income, with proper disclosure".

    I feel that my ex is creating a lot of conflict, just for the sake of it.

    I have tried to make daycare payments to my ex, as she requested, for 50% of daycare fees, for which receipt was provided. Both times, they have not cashed in the email transfer. Then later on, they claim I am refusing to pay these amounts.

    Our final order wiped out any Section 7 "arrears" from the past. Yet my ex keeps bringing them up, demanding I pay them. These requests seem to come as retaliation every time I try to enforce some other aspect of our divorce order.

    So at the end of the day... am I out of line by refusing to pay until I receive the disclosure I am asking for? (I have received NONE of it, btw). Or am I being unreasonable, and making this conflict worse?

  • #2
    Do *not* pay expenses, without a proper receipt first. No receipt, no payment. (but be prepared to pay... set aside money in case she does provide receipt).

    Make sure all communication about this, is in writing (email at least) - sounds like you do this already.

    From the Ontario family law rules:

    Annual obligation to provide income information
    24.1 (1) Every person whose income or other financial information is used to determine the amount of an order for the support of a child shall, no later than 30 days after the anniversary of the date on which the order was made in every year in which the child is a child within the meaning of this Regulation, provide every party to the order withthe following, unless the parties have agreed otherwise:
    1. For the most recent taxation year, a copy of the person’s,
    i. personal income tax return, including any materials that were filed with the return, and
    ii. notice of assessment and, if any, notice of reassessment.
    2. As applicable, any current information in writing about,
    i. the status and amount of any expenses included in the order pursuant to subsection 7 (1), and
    ii. any loan, scholarship or bursaries the child has received or will receive in the coming year that affect or will affect the expenses referred to in subparagraph i. O. Reg. 25/10, s. 6.

    --

    Given your order states that you will share expenses proportionately, her income disclosure is required. Make your request to her in writing (sounds like you already did), and if she won't provide it, you can utilize court, to force income disclosure. Perhaps filing the papers, will be enough for her to budge?

    Re: work benefits - you could force disclosure of this too, I think, if she won't provide the information. FYI, the costs (if any) for her to maintain the child on her work benefits (only the portion attributed to the child), is considered a section 7 expense, and therefore, you should both be splitting that expense as well, by law.
    Last edited by dad2bandm; 01-17-2014, 12:53 PM. Reason: Clarified "do not pay statement".

    Comment


    • #3
      Originally posted by ByMyself View Post

      ...Our final order wiped out any Section 7 "arrears" from the past. Yet my ex keeps bringing them up, demanding I pay them. These requests seem to come as retaliation every time I try to enforce some other aspect of our divorce order...
      Ignore this, if she brings it up. Final order already took care of this. I wouldn't even response at all, to anything written talking about this.

      Comment


      • #4
        Originally posted by ByMyself View Post
        ...My ex has sent through requests in the past for money to pay for certain section 7 expenses. Prescription glasses, daycare, small $ extracurriculars...
        "small $ extracurriculars"... this is vague. This may, or may not be section 7 to begin with. Given the description, probably not. It would be entirely up to you, if you wanted to chip in for these, or not (again, depending on the costs and if you agreed to them).

        Daycare, is definitely section 7.

        Prescription glasses...section 7, I would imagine, since they would be a "health care" cost I guess, and likley total more than $100 a year. Section 7 is outlined in the Ontario Family law rules.

        Comment


        • #5
          Originally posted by ByMyself View Post
          ...I have tried to make daycare payments to my ex, as she requested, for 50% of daycare fees, for which receipt was provided. Both times, they have not cashed in the email transfer. Then later on, they claim I am refusing to pay these amounts...
          Keep track of your payments and any confirmations of payments, made through any method (including email transfer payments). For each payment, make sure to note "my share of daycare fee, for x month/year". So it's clear what payment was for.

          FYI, daycare fees... Technically, the proportionate split should be done, already factoring in any tax credit she receives for this too. If you want to be technical.

          Comment


          • #6
            The "small $ extracurriculars", are things like ballet, music lessons, etc. Things that typically cost $10-20 per session, when averaged out over the duration of the program.

            I don't feel they are section 7, being that they are not extraordinary. I do lots of activities with our kids, on my time, that cost similar amounts. That's part of regular day to day parenting, IMO.

            It seems like my ex is just hanging the accruing section 7 expenses over my head, bringing them up only to distract me from more legitimate pursuits, and not helping to resolve the conflict when given the opportunity.

            I fired off an email awhile ago, stating my position (re: needing disclosure before paying anything more), and stated this is the last time I will reply regarding this issue until they make an effort to resolve this conflict. Any time they bring it up again, I refer them to that email, and say nothing more.

            The unfortunate part, though, is that now I am getting no communication regarding these expenses accruing, and could get stuck with a big bill one day too, if they do complete the disclosure.
            Last edited by ByMyself; 01-17-2014, 01:06 PM. Reason: de-genderizing

            Comment


            • #7
              Originally posted by ByMyself View Post
              ...
              It seems like my ex is just hanging the accruing section 7 expenses over my head, bringing them up only to distract me from more legitimate pursuits, and not helping to resolve the conflict when given the opportunity...
              If they are section 7 expenses. In your examples you gave, for most folks, these probably would not be. $100 swimming class for a year (let's say). Not section 7.

              It's not clear to me still, were you consulted about said activities at all, and did you agree to them? Or is Mom just sending you amounts, after she signs child up, without consulting you?

              Comment


              • #8
                Originally posted by ByMyself View Post
                Here's the issue:

                My ex has sent through requests in the past for money to pay for certain section 7 expenses. Prescription glasses, daycare, small $ extracurriculars.

                She asked that I pay for 1/2 of glasses. Ex states urgency, she has no benefits at work, not enough money to pay for glasses and then get reimbursed from me. I sent an email transfer for 1/2 of amount so she could go buy them for our daughter, with a request for a copy of the receipt.

                I have requested numerous times in writing for copy of the receipt, and get nothing. She accidently let out, a bit later, that she does have benefits at work. Lesson learned.

                So the next time a request for section 7 money came around, I respond that prior to making further payments I need the following disclosure, at minimum:

                1. Most recent T4 and notice of assessment.
                2. Actual receipts for any section 7 expenses they are claiming.
                3. Copy of health benefits plan from work, or letter authorizing me to have access to and speak to health benefits provider regarding coverage available to children, limits, and additional costs of having them on my ex's plan.
                4. Disclosure regarding amounts the other parent is receiving for D6's disability (CP has indicated they receive special funding on intake forms I received through health care disclosure I have obtained)

                I have supplied current T4 and offered to supply letter from employer stating that I don't have benefits available to me.


                So at the end of the day... am I out of line by refusing to pay until I receive the disclosure I am asking for? (I have received NONE of it, btw). Or am I being unreasonable, and making this conflict worse?

                I feel your pain. S7 can be a huge pain in the posterior.

                However, if D6 needs glasses, she needs them *now*, not after you get all this sorted out with your ex. So paying for the glasses up front, without all the disclosure, was the right thing to do. For other expenses which are not urgent, I think your request for disclosure first is reasonable. The only thing I'm not sure about is item #4. How does this affect your share of S7 costs, if receipts, income information and health coverage details are available to you?

                Instead of email transfers, could you try setting up bank transfers? That way, you have a record of money leaving your account and going straight into an account designated by the ex, so there's no question of you not paying.

                Comment

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