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How to Split Section 7 Childcare

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  • How to Split Section 7 Childcare

    My ex husband and I are fully divorced and have a separation agreement that has always dictated our terms. Neither of us ever understood section 7 expenses correctly so I had always just paid child care on my own (through loans from family). I have sole custody of the kids and he sees them once a week for 5 hours (doesn't want more, I have offered). He pays his child support every week as per our agreement.

    I have had an arrangement with my work where I could work from home after my kids are done school to save on childcare because it was unmanageable on my own. That agreement is now coming to an end and I am going to have to put them in before/after school care. My ex is willing to pay his portion of the amount, we just don't quite know how we calculate that. My understanding is it is proportional to income, but does that include the Child Tax Benefit in my income?

    My ex makes $41,000 roughly, and I make $42,000 roughly but I also get $11,000 in CCB. So does that mean we calculate it based off my income of $53,000?

    I should add he is not free during these hours to watch them.

    We both want to settle this outside of court and both would like to still make this a weekly payment based off the correct percentage of the childcare.

    Thanks for your help!

  • #2
    Why not just use the method and worksheets the Government of Canada has available?


    https://www.justice.gc.ca/eng/rp-pr/...e/w2a-f2a.html


    Worksheets 1 and 2

    Comment


    • #3
      I have gone through that but the problem I am having is it is based on annual amounts. It was helpful in trying to figure out the percentages though. It lists UCCB which is no longer in use, now we have the CCB. UCCB was taxable, CCB is not. I am just not sure if I include CCB?

      We plan on both claiming our portions of what we pay so I don't think we need to worry about the tax deduction sections.

      Comment


      • #4
        You don’t include uccb in your income. You have full custody, you are eligible for the claim on your taxes.

        You take the cost of daycare and subtract any tax benefits you get (ie if you claim the daycare and it means you get $300 back a year—you subtract that $300 from the total) and then split according to income. Probably is 50/50.

        Or you can have him pay you half monthly and when you do your taxes, calculate the tax benefit and give him back half (or subtract his half from the first month).

        Comment

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