Introduction
When relationships end, the road ahead can seem foggy—especially when it comes to finances. How much support must be paid? Who pays for ballet lessons, braces, or private school? In Ontario, the answers lie in the twin pillars of family law support: calculating income for support purposes and understanding Section 7 expenses.
Let’s face it: support calculations are rarely straightforward. With complex incomes, self-employment, and ever-changing expenses, even the most organized parent or spouse can find themselves lost in the weeds. But clarity is possible. This guide—crafted by seasoned family lawyers—breaks down everything you need to know about calculating support obligations, sharing special or extraordinary expenses, and navigating the process with confidence.
What Does “Calculating Income for Support Purposes” Mean in Ontario?
Calculating income for support purposes is the backbone of setting fair child and spousal support payments. But what does it actually mean? Put simply, it’s figuring out each party’s true annual income—sometimes a number that’s not as obvious as it seems at first glance.
Why does it matter? Because the Federal Child Support Guidelines and the Spousal Support Advisory Guidelines both rely on accurate income figures. If the number is wrong, support payments may be unfair, leading to disputes, court battles, or hardship.
In Ontario, “income” for support purposes is not always your line 15000 (“total income”) from your tax return. The courts can adjust that number based on the specifics of your financial situation.
What Is Considered “Income” for Support Calculations?
It’s tempting to think “income” just means what you bring home from your job. If only it were that simple! In reality, calculating income for support purposes often involves a deep dive into tax returns, pay stubs, business statements, and more.
Typical sources of income considered:
- Employment income (salary, wages, bonuses, overtime)
- Self-employment earnings (after business expenses)
- Rental income (net, after expenses)
- Investment income (dividends, interest, capital gains)
- Company dividends or shareholder draws
- Employment insurance, CPP, or other benefits
- Pension income
- Trust income
- Imputed income (when the court believes income is hidden or underreported)
Key points:
- The court can “impute” income if someone is intentionally unemployed or underemployed, or if there’s evidence they’re hiding assets.
- Non-taxable income (e.g., some disability benefits) may be added back.
- Certain deductions allowed under tax law (e.g., RRSP contributions, some business expenses) may not be allowed for support calculations.
Example Adjustments Courts May Make
- Add back: Personal expenses run through a business, non-essential deductions.
- Average: Fluctuating income over three years (common for self-employed or commission-based earners).
- Gross-up: Non-taxable income is increased to reflect what it would have been if taxed.
How Do Courts Determine Child Support in Ontario?
Ontario uses the Federal Child Support Guidelines to determine basic child support. The amount is based on:
- The paying parent’s annual income (as defined above)
- The number of children entitled to support
- The province of residence
There’s a table—updated annually—that sets out support amounts for every income level and number of children. The guidelines are mandatory for most cases, though courts can deviate in rare circumstances (e.g., undue hardship).
Step-By-Step: Calculating Child Support
- Determine the payer’s guideline income (using the rules above).
- Check the Federal Child Support Guidelines table for Ontario.
- Find the amount for the payer’s income and number of children.
- Adjust for shared or split custody if applicable.
Note: The “table amount” covers the child’s basic expenses—food, shelter, clothing, and typical school costs. But what about hockey fees, orthodontics, or tutoring? That’s where Section 7 expenses enter the picture.
What Are Section 7 Expenses?
Section 7 expenses, named after section 7 of the Federal Child Support Guidelines, are those “special or extraordinary” expenses not covered by the basic table amount.
Common Section 7 expenses include:
- Childcare costs (daycare, after-school programs, nannies)
- Medical and dental expenses not covered by insurance
- Educational expenses (tutoring, private school, post-secondary costs)
- Extraordinary extracurricular activities (competitive sports, art programs, music lessons)
- Expenses related to a child’s disability
The big question: What makes an expense “extraordinary”?
Generally, it’s an expense that’s necessary for the child’s best interests and beyond what most families would spend, given their means.
Examples:
- $200/month for soccer? Maybe not.
- $3,000/year for competitive hockey? Likely yes.
How Are Section 7 Expenses Split Between Parents?
Once a Section 7 expense is agreed to (or ordered by the court), the next step is figuring out who pays what.
The golden rule:
Section 7 expenses are shared in proportion to each parent’s incomes.
How to Calculate Each Parent’s Share
- Add both parents’ guideline incomes.
- Divide each parent’s income by the total to get their percentage share.
Example:
Parent A’s guideline income: $60,000
Parent B’s guideline income: $40,000
Total: $100,000
- Parent A: 60%
- Parent B: 40%
If the section 7 expense is $1,000, Parent A pays $600, Parent B pays $400.
Pro tips:
- Always keep receipts and records of payments.
- If there’s a disagreement about the necessity or reasonableness of an expense, mediation or court may be needed.
What Documentation Is Needed for Support and Section 7 Calculations?
Paperwork is your friend when it comes to calculating income for support purposes and Section 7 expenses. Courts and lawyers want to see numbers, not guesswork.
Essential documents include:
- Last three years’ personal income tax returns (T1 Generals)
- Notices of Assessment from CRA for each year
- Recent pay stubs (if employed)
- Statement of business activities and financial statements (if self-employed)
- Proof of other income sources (investments, rental, etc.)
- Receipts/invoices for Section 7 expenses
- Medical/dental plan coverage statements
Don’t forget:
You’re legally required to update the other parent (and the court) about changes in your income. Hiding the ball can land you in hot water—and possibly owing retroactive support.
How Does Spousal Support Differ from Child Support?
While both child and spousal support depend on accurate income calculations, the formulas are different—and spousal support is less rigid.
Child Support
- Based on the Federal Child Support Guidelines
- Table amount is usually mandatory
- Only the payer’s income counts (except in shared/split custody)
Spousal Support
- Determined using the Spousal Support Advisory Guidelines (SSAGs)
- Both parties’ incomes are considered
- Range of possible outcomes (low, mid, high)
- Factors: length of relationship, roles during marriage, needs, means, age, health, and more
Hot tip:
Always calculate both child and spousal support together. Child support takes priority; spousal support is calculated after child support is determined.
Common Pitfalls in Calculating Income for Support Purposes and Section 7 Expenses
Family law is a maze, and it’s all too easy to take a wrong turn. Here’s what trips up many Ontarians:
1. Underestimating or Overestimating Income
- Not including all sources (e.g., cash jobs, investments)
- Failing to adjust for fluctuating income (especially for self-employed)
2. Misclassifying Section 7 Expenses
- Treating every extracurricular as “extraordinary”
- Not considering the family’s financial circumstances
3. Skipping Documentation
- Not providing full financial disclosure
- Forgetting to keep receipts for Section 7 expenses
4. Delaying Income Updates
- Not reporting raises, job changes, or losses promptly
- Falling behind on tax filings
5. DIY Calculations Without Legal Advice
- Online calculators are helpful but not foolproof
- Nuances in law can change results significantly
Conclusion
Calculating income for support purposes and Section 7 expenses is at the heart of Ontario family law’s approach to fairness and the child’s best interests. While the rules may seem labyrinthine, they’re designed to ensure children’s needs are met and that support obligations reflect real financial circumstances.
Don’t go it alone. By understanding what counts as income, how Section 7 expenses are split, and the importance of proper disclosure, you’ll be better equipped to safeguard your rights and your children’s well-being. For personalized guidance—and to avoid costly mistakes—consult an experienced family law firm committed to clarity, transparency, and results.
For more information about calculating income for support purposes and Section 7 expenses, or to book a confidential consultation, visit Tailor Law’s family law page or speak with a qualified Ontario family lawyer today. Your financial future—and your family’s peace of mind—deserve nothing less.
