Section 7 expenses question

[SingingDad]

Repost... accidentally put this in the wrong forum yesterday


I have two questions for anyone who may have the answers.

7. (3) Subject to subsection (4), in determining the amount of an expense referred to in subsection (1), the court must take into account any subsidies, benefits or income tax deductions or credits relating to the expense, and any eligibility to claim a subsidy, benefit or income tax deduction or credit relating to the expense.

My ex is trying to have me pay a portion of my son's psych expenses that are not covered by the insurance (related to disability). My point to her is that she receives the Child Disability Benefit and the money from that should be used to cover the portion not covered by the insurance. Am I right in my interpretation of 7. (3)?



3.1 To calculate income for the purpose of determining an amount under section 7 of this Regulation, deduct the support, not including child support, paid to the other parent or spouse and, as applicable, make the following adjustment in respect of universal child care benefits:
(a) deduct benefits that are included to determine the parent or spouse’s total income in the T1 General form issued by the Canada Revenue Agency and that are for a child for whom special or extraordinary expenses are not being requested; or
(b) include benefits that are not included to determine the parent or spouse’s total income in the T1 General form issued by the Canada Revenue Agency and that are received by the parent or spouse for a child for whom special or extraordinary expenses are being requested.

I'm not sure about this one at all, but does 3.1 (b) mean that credits such as CCTB, CDB, and UCCB are included as income when considering how to split section 7 amounts?

SD

 

[SingingDad]

I got an interpretation on this from my lawyer.

Since the CDB is issued for a disability, the amount (and any other benefit received for the disability) should be used to cover the expenses related to the disability before splitting expenses proportionally under section 7.

As for what to include as income for section 7, CCTB, CDB, and GST credits are included for income. While case law hasn't addressed the Working Income Tax credit or Ontario Trillium Benefit, they are similar credits and should be considered (though it may take a judges ruling to make it law).

 

[FightingForFamily]

Thanks for the update, it's almost CS recalculation time and this information may help me in the Section 7 split. My former spouse doesn't work but actually has a higher net income than me due to all the benefits she collects for herself and my son. So far she has tried to stick me with more than 80% of section 7 expenses, because she was not considering her thousands of dollars in benefits as income.

I have had moderate success in persuading my ex that I will not pay for section 7 expenses related to disability that are covered by our son's ACSD benefits.