Section 7 Child Support Expenses in Ontario: What Zhao v. Xiao Means
Zhao v. Xiao confirms that Ontario courts may consider household income when allocating section 7 expenses, but the usual starting point remains each parent’s income.
In This Guide
This guide explains section 7 child support expenses in Ontario, Zhao v. Xiao, household income, disclosure, advance notice, blended families, and practical documentation.
Quick Facts
Section 7 expenses are additional costs beyond table child support.
Common examples include child care, uninsured medical expenses, education, post-secondary costs, and extraordinary activities.
The usual approach is sharing based on each parent’s income.
Zhao v. Xiao permits household income to be considered in appropriate, fact-specific cases.
A new spouse does not automatically become liable for child support.
The 2025 Federal Child Support Guidelines tables, effective October 1, 2025 and in force during 2026, may affect basic support calculations, but they do not decide every section 7 claim.
OMNI LAW GROUP serves Orangeville, Dufferin County, Brampton, and Peel Region from its Orangeville base.
What are section 7 child support expenses in Ontario?
Section 7 expenses are special or extraordinary expenses ordered in addition to basic table child support. The governing provision is section 7 of the Federal Child Support Guidelines.
The listed categories include:
Child care connected to employment, illness, disability, education, or employment training.
The child’s portion of medical and dental insurance premiums.
Health-related expenses that exceed insurance reimbursement by at least $100 annually.
Extraordinary primary or secondary education expenses.
Educational programs meeting a child’s particular needs.
Post-secondary education expenses.
Extraordinary extracurricular activities.
A listed category does not automatically qualify. The court still considers necessity, reasonableness, the child’s circumstances, each household’s means, and the family’s prior spending pattern.
For education and extracurricular expenses, the court also considers whether the cost is extraordinary in the circumstances. A routine school fee or ordinary activity may not qualify simply because it relates to education or recreation.
What did Zhao v. Xiao decide about household income?
In Zhao v. Xiao, 2023 ONCA 453, the Ontario Court of Appeal considered whether section 7 expenses could be apportioned using household income rather than only each parent’s individual income.
The usual principle under section 7 is that expenses are shared in proportion to the parents’ respective incomes, after accounting for any child contribution. However, section 7 also directs the court to consider the means of the spouses and the child.
On the particular facts in Zhao v. Xiao, the court accepted that household income could be relevant. The analysis included the financial circumstances of a new spouse in the household. The new spouse was actively contributing to household resources and providing benefits connected to the children, including employment-related education and medical or dental benefits.
The decision does not create an automatic rule. A new spouse does not automatically become a child support payor. The legal responsibility remains with the parents. The court may, however, consider the economic circumstances of the household when deciding the parent’s share of section 7 expenses.
The result remains fact-specific.
How much deference applies to a section 7 decision?
Section 7 allocation often involves a discretionary assessment. The court weighs evidence about income, expenses, needs, benefits, family spending, and household resources.
The appellate principles discussed in Hickey v. Hickey and Lesko v. Lesko recognize that appellate courts generally give considerable deference to discretionary family law decisions. An appeal is not simply a second opportunity to request a different result. Intervention usually requires a material error in principle, a significant misapprehension of the evidence, or an outcome that cannot be supported by the record.
That context matters in Zhao v. Xiao. The Court of Appeal did not state that household income must always be used. It confirmed that using household income was permissible on the specific evidence before the court.
How does the court assess reasonableness?
The reasonableness inquiry is separate from identifying a listed category.
The court may consider:
The child’s best interests and actual need.
The means of the parents, spouses, and child.
The family’s spending pattern before separation.
The nature and cost of the expense.
Available insurance, employer benefits, subsidies, tax credits, and reimbursements.
Whether the child can reasonably contribute.
The nature and number of educational programs or activities.
A child’s particular needs or talents.
Whether the requesting parent can reasonably cover the expense.
The expense must be assessed in context. A specialized program may be reasonable for one family and disproportionate for another. A private educational expense may require evidence about the child’s needs, the family’s prior choices, and the cost compared with available alternatives.
The court should calculate the net expense where applicable. Subsidies, tax credits, grants, bursaries, insurance payments, and other benefits may reduce the amount available for sharing.
What does Shaw v. Friesen say about notice and disclosure?
Shaw v. Friesen, 2017 ONSC 2077 provides an important practice lesson about evidence, disclosure, and communication.
Parties should provide information about a proposed section 7 expense before incurring it where circumstances permit. They should seek advance agreement or consent where appropriate. At minimum, timely notice and supporting information can reduce later disputes.
This point remains subject to the wording of the existing order, agreement, and facts. Advance notice is not a universal replacement for legal analysis. It also does not mean that a parent can unilaterally create an obligation by choosing an expense.
Useful information may include:
The child’s enrolment or registration details.
The reason for the expense.
The total cost.
Payment deadlines.
Available subsidies or reimbursements.
Insurance coverage.
Tax credits or other benefits.
The proposed division between the parents.
Evidence of the child’s contribution.
Retroactive claims create additional issues. A court may examine whether the other parent had notice, whether the expense was reasonable, and whether the evidence supports the amount claimed.
Can incomplete financial disclosure affect child support?
Yes. Financial disclosure is central to child support and section 7 analysis.
Graham v. Graham, 2014 ONSC 357 is supplied as a practice point that misleading or fraudulent financial disclosure may support income imputation where relevant to a support analysis.
Income imputation is not automatic. The court assesses the available evidence and the reason disclosure is incomplete or unreliable. Issues may include undisclosed income, business benefits, inaccurate reporting, intentional under-employment, or financial information that does not reflect actual means.
A parent seeking or opposing section 7 expenses should keep income information current. Relevant records may include notices of assessment, income tax returns, pay statements, corporate records, benefit statements, and information about non-cash employment benefits.
The court may also distinguish between income accepted for tax purposes and income relevant to child support. Financial disclosure should address the real resources available to each household.
How do blended-family resources affect section 7 claims?
Zhao v. Xiao is especially relevant to blended-family households.
The court may consider whether a new spouse:
Pays household expenses.
Pays education or activity costs.
Provides medical or dental benefits through employment.
Contributes to shared household resources.
Reduces the parent’s direct financial burden.
These facts may support an argument that household income is relevant to the parent’s share. They do not make the new spouse personally liable for the child support obligation.
The analysis must remain evidence-based. A parent should not assume that a new spouse’s income will always be included. The other parent should not assume that the new spouse’s income is always irrelevant.
The question is how the household’s actual financial circumstances affect the statutory assessment of means, reasonableness, and proportional sharing.
How should a section 7 expense be documented?
Start with a clear expense record.
Keep:
Invoices and receipts.
Prescriptions, assessments, or treatment recommendations.
Registration confirmations.
Education or activity details.
Insurance statements.
Reimbursement records.
Benefit-plan information.
Subsidy, grant, or bursary information.
Tax-credit information.
Proof of payment.
Written communications about notice and consent.
Records of any child contribution.
Identify who pays the benefit and what the insurance covers. Calculate the unpaid amount after reimbursements and credits. State the proposed sharing ratio and the income information used.
A written request should explain what the expense is, why it is being incurred, the deadline, the expected net cost, and the requested contribution. The request should avoid combining unrelated expenses into one unexplained total.
For parents in Orangeville and Dufferin County, organized records can assist with preparation for family proceedings involving the Orangeville Courthouse. Brampton and Peel matters may proceed through the A. Grenville & William Davis Courthouse at 7755 Hurontario Street, depending on the court file and assignment.
OMNI LAW GROUP is based in Orangeville and serves family matters across Dufferin County, Brampton, and Peel Region.
OMNI LAW GROUP focuses on the intersection of Criminal Defence & Family Law when criminal allegations affect parenting time, decision-making responsibility, disclosure, or support.
What this means for Ontario families
Zhao v. Xiao does not replace the usual income-based approach. It confirms that household income can be considered where the evidence supports that analysis.
Parents should not treat every large expense as a section 7 expense. They should identify the statutory category, assess necessity and reasonableness, provide notice, disclose supporting records, and account for insurance and other benefits.
The 2025 Federal Child Support Guidelines tables, effective October 1, 2025 and in force during 2026, may affect basic child support. Section 7 expenses still require a separate assessment.
OMNI LAW GROUP serves Orangeville, Dufferin County, Caledon, Bolton, Alton, Shelburne, Mono, Brampton, and Peel Region from 162 Broadway, Suite 8, Orangeville, ON L9W 1K3.
For family matters, contact a family lawyer serving Orangeville, Dufferin County and Peel Region. For related criminal allegations, including domestic matters, contact a Criminal Defence Lawyer in Orangeville.
Peel Region court cases are processed at 7755 Hurontario Street in Brampton. Client preparation, document signing, and strategy meetings occur at the Orangeville office or through secure virtual appointments. The Orangeville location provides access for Dufferin County and North Peel residents, including Highway 10 and Highway 410 routes.
OMNI LAW GROUP is open Monday to Friday, 9:00 AM to 5:00 PM. An initial consultation includes a conflict check. Where family and criminal matters overlap, separate retainers may be required because the issues, legal interests, and professional obligations may differ.
Local Legal FAQ
What are section 7 child support expenses in Ontario?
Section 7 child support expenses are special or extraordinary expenses paid in addition to basic table child support. They may include child care, the child’s medical or dental insurance premiums, uninsured health expenses, extraordinary education, post-secondary education, and extraordinary extracurricular activities. The expense must fit a listed category and remain reasonable in the circumstances. Courts consider the child’s needs, the means of the parents and child, the family’s prior spending pattern, available insurance, subsidies, tax credits, and any contribution by the child. The usual sharing approach is based on the parents’ respective incomes, subject to the facts and applicable order.
Can a new spouse’s income affect section 7 expenses after Zhao v. Xiao?
Yes, a court may consider a new spouse’s income when allocating section 7 expenses in an appropriate, fact-specific case. Zhao v. Xiao confirms that household income can be relevant where the new spouse actively contributes to household resources or provides benefits connected to the child, such as employment-related education or medical and dental coverage. This does not make the new spouse personally liable for child support. The legal obligation remains with the parents. The usual starting point remains each parent’s income, but household circumstances may affect the assessment of means, reasonableness, and proportional sharing.
What documents are needed to claim a section 7 expense in Ontario?
A section 7 claim should include invoices, receipts, prescriptions, professional assessments, registration or education details, payment records, and information about the child’s need for the expense. The claiming parent should also provide insurance statements, reimbursement amounts, subsidies, grants, bursaries, tax credits, and any child contribution. Advance written notice should identify the expense, deadline, expected net cost, and proposed sharing ratio. Income disclosure may include notices of assessment, tax returns, pay statements, benefit records, and business information where relevant. The specific order, agreement, and facts determine what evidence is required.
Legal Disclaimer
This article provides general legal information only. It is not legal advice and does not create a lawyer-client relationship. The authorities and legal principles discussed should be reviewed against the current legislation, court order, agreement, and facts of each matter. An initial consultation is subject to a conflict check and does not establish a retainer.
ABOUT THE AUTHOR
Vaneet Sangha is Co-founder of OMNI LAW GROUP and a member of the Law Society of Ontario. OMNI LAW GROUP provides family law and criminal defence services from 162 Broadway, Suite 8, Orangeville, ON L9W 1K3.
Contact: 905-497-7200
Hours: Monday to Friday, 9:00 AM to 5:00 PM