Under the Federal Child Support Guidelines, SOR/97-175, s. 7(1)(b), New Brunswick courts may order parents to share the portion of medical and dental insurance premiums attributable to their children as a special expense. Health-related costs exceeding insurance reimbursement by at least $100 annually, including orthodontic treatment and professional counselling, qualify as Section 7 expenses shared in proportion to each parent's income. A parent earning 60% of the combined household income pays 60% of the children's health insurance premiums and unreimbursed medical costs. The Court of King's Bench, Family Division handles all health insurance child support matters in New Brunswick, with variation applications costing $100 as of March 2026.
Key Facts: Health Insurance and Child Support in New Brunswick
| Factor | Details |
|---|---|
| Filing Fee | $110 total ($100 petition + $10 clearance certificate) |
| Variation Application Fee | $100 |
| Residency Requirement | One year ordinary residence in New Brunswick |
| Grounds for Divorce | Marriage breakdown (1-year separation, adultery, or cruelty) |
| Property Division | Equitable distribution |
| Governing Law | Federal Child Support Guidelines (SOR/97-175) and New Brunswick Family Law Act (SNB 2020, c. 23) |
| Medical Expense Threshold | Health costs must exceed insurance by $100+ annually |
| Age of Majority | 19 years (Age of Majority Act, RSNB 2011, c. 103) |
How Section 7 Expenses Apply to Health Insurance in New Brunswick
Section 7 of the Federal Child Support Guidelines, SOR/97-175 establishes that health insurance premiums attributable to children constitute special expenses eligible for court-ordered sharing between parents. The parent with employer-sponsored health benefits typically maintains coverage for the children, and the premium portion covering the children becomes a Section 7 expense divided proportionally by income. Courts in New Brunswick apply this federal framework through both the Divorce Act for married couples and the provincial Family Law Act for unmarried parents.
The Federal Child Support Guidelines define qualifying health insurance expenses in three categories under Section 7(1)(b) and 7(1)(c). The first category covers the portion of medical and dental insurance premiums attributable to the child. The second category includes health-related expenses exceeding insurance reimbursement by at least $100 annually. The third category encompasses orthodontic treatment, professional counselling provided by psychologists, social workers, psychiatrists, and other health professionals not covered by standard insurance plans.
Calculating the Premium Portion Attributable to Children
New Brunswick courts determine the children's share of health insurance premiums by comparing the cost of single coverage versus family coverage. If a parent pays $150 monthly for single coverage and $350 monthly for family coverage that includes two children, the children's attributable portion equals $200 monthly ($350 minus $150). This $200 monthly premium becomes the Section 7 expense subject to proportional sharing based on each parent's income percentage.
When both parents have access to employer health benefits, courts assess which plan provides more comprehensive coverage at lower cost. The parent with the superior plan typically maintains children's coverage, while the other parent contributes their proportional share of the premium cost. Courts consider deductibles, co-pays, prescription coverage, dental benefits, vision care, and mental health services when comparing plans.
Income Proportional Sharing Formula for Health Insurance Costs
Under Section 7(2) of the Federal Child Support Guidelines, special expenses including health insurance premiums are shared in proportion to each parent's respective income after deducting any contribution from the child. The formula requires calculating each parent's gross annual income, adding those amounts together, then determining each parent's percentage of the combined total. A parent earning $80,000 annually when the other earns $40,000 pays 66.67% of Section 7 expenses while the lower-earning parent pays 33.33%.
The calculation must account for tax benefits and subsidies relating to the expense. Under Section 7(3), courts deduct from the expense amount any subsidies, benefits, income tax deductions, or credits available to either parent. Medical expense tax credits, provincial health program subsidies, and employer health spending accounts all reduce the net expense amount before proportional sharing calculations occur.
Example Calculation: Health Insurance Premium Sharing
| Parent | Annual Income | Income Percentage | Monthly Premium Share |
|---|---|---|---|
| Parent A | $75,000 | 62.5% | $125.00 |
| Parent B | $45,000 | 37.5% | $75.00 |
| Combined | $120,000 | 100% | $200.00 total |
In this example, the children's portion of the health insurance premium costs $200 monthly. Parent A earns 62.5% of the combined income and therefore pays $125 monthly toward the premium. Parent B contributes the remaining $75 monthly. The parent maintaining the employer coverage receives this contribution from the other parent as a Section 7 expense payment separate from basic child support.
Unreimbursed Medical Expenses Beyond Insurance Coverage
Health-related expenses that exceed insurance reimbursement by at least $100 annually qualify as Section 7 special expenses under Federal Child Support Guidelines, s. 7(1)(c). This threshold prevents disputes over nominal amounts while ensuring significant medical needs receive proper financial support. Qualifying expenses include orthodontic treatment, eyeglasses and contact lenses, prescription medications with co-pays, physiotherapy, occupational therapy, speech therapy, and professional counselling by licensed practitioners.
Parents must document unreimbursed medical expenses with receipts, insurance explanation of benefits statements, and proof of payment. Courts typically order parents to share annual unreimbursed medical costs exceeding $100 using the same income proportional formula applied to insurance premiums. Some separation agreements establish expense thresholds above the $100 minimum or create different sharing arrangements for routine versus extraordinary medical costs.
Common Unreimbursed Health Expenses in New Brunswick Divorces
The following health-related costs frequently exceed insurance coverage and qualify for proportional sharing between separated parents in New Brunswick:
- Orthodontic treatment averaging $5,000 to $8,000 for braces or aligners
- Prescription medication co-pays and deductibles accumulating $200 to $500 annually
- Eyeglasses and contact lenses costing $300 to $600 per child annually
- Mental health counselling at $150 to $250 per session when insurance limits are exhausted
- Speech therapy sessions ranging $100 to $200 each for children with communication needs
- Physiotherapy treatments at $80 to $150 per session for injury recovery
- Dental procedures not covered by basic plans including wisdom tooth extraction
Court Orders for Health Insurance Maintenance in New Brunswick
The Court of King's Bench, Family Division may include specific provisions in parenting orders and support orders requiring a parent to maintain health insurance coverage for children. Under New Brunswick Family Law Act, SNB 2020, c. 23, s. 48, support orders can include terms requiring a parent with a life insurance policy to designate the other spouse or child as beneficiary, demonstrating the court's authority to mandate insurance-related provisions for children's protection.
Courts examine the necessity of the expense in relation to the child's best interests and the reasonableness of the expense considering the parents' financial means and pre-separation family spending patterns. A family that maintained comprehensive health coverage before separation will likely see courts order continuation of similar coverage. Parents who never carried health insurance cannot typically be ordered to obtain coverage absent special circumstances demonstrating medical necessity for the children.
Modifying Health Insurance Provisions in Existing Orders
Either parent may apply to vary a child support order including Section 7 health insurance provisions by filing a variation application with the Court of King's Bench, Family Division. The application fee is $100 as of March 2026. Under Divorce Act, R.S.C. 1985, c. 3, s. 17(4), the applicant must demonstrate a material change in circumstances such as loss of employer health benefits, significant income change affecting proportional shares, or changed health needs of the children requiring different coverage.
Material changes warranting variation of health insurance provisions include job loss resulting in termination of employer benefits, new employment offering superior health coverage at lower cost, diagnosis of a child's chronic condition requiring specialized coverage, or relocation affecting access to in-network healthcare providers. Courts will not vary orders based on minor premium increases or temporary employment changes unless the change fundamentally alters the parties' ability to comply with existing terms.
Employer Health Benefits and Divorce Notification Requirements
Parents with employer-sponsored health insurance must understand notification requirements when separation occurs. In Canada, separated spouses may remain on family coverage as long as the marriage remains legally intact, though benefit plan terms specify whether the employee must notify the employer of separation status. Once a divorce judgment becomes final, the former spouse loses eligibility for coverage under most employer plans, requiring removal within 31 days of the divorce date.
Children remain eligible for coverage under a parent's employer plan regardless of divorce. The divorce judgment or separation agreement should specify which parent maintains health coverage for children and establish the Section 7 expense sharing arrangement for premium costs. Parents should request written confirmation from their employer's benefits administrator regarding children's continued eligibility and provide copies of court orders requiring coverage maintenance.
Steps to Secure Children's Health Coverage During Separation
- Confirm current coverage details including premium costs, deductibles, and covered services
- Obtain documentation showing the premium portion attributable to children versus spouse
- Compare both parents' available coverage options for cost and comprehensiveness
- Include specific health insurance provisions in the separation agreement or parenting order
- Establish a method for sharing unreimbursed medical expense receipts and payments
- Notify the benefits administrator of address changes affecting insurance card delivery
- Request new insurance cards listing the parent with decision-making responsibility as primary contact
New Brunswick Office of Support Enforcement and Health Insurance Costs
The New Brunswick Office of Support Enforcement (OSE) can enforce Section 7 special expense provisions including health insurance premium contributions when clearly specified in the court order or written agreement. Contact OSE at 1-844-673-4499 to register support orders for enforcement services. OSE enforcement tools include wage garnishment, interception of federal payments including tax refunds and Employment Insurance benefits, passport suspension for arrears exceeding $3,000, and credit bureau reporting of unpaid support obligations.
For OSE to enforce Section 7 health insurance expenses, the order or agreement must clearly state the specific dollar amounts or percentage shares each parent must contribute. Vague provisions stating parents will "share medical expenses" without specifying the calculation method create enforcement difficulties. Effective orders state the exact premium amount, each parent's percentage share, payment frequency, and the method for reconciling and sharing unreimbursed medical costs annually or upon occurrence.
Provincial Health Coverage and Private Insurance Coordination
New Brunswick Medicare provides basic physician and hospital services to all residents, but dental care, prescription drugs, vision care, and many therapeutic services require private insurance or out-of-pocket payment. Children from separated families may qualify for provincial programs including the New Brunswick Drug Plan for families without employer coverage and the Healthy Smiles program providing dental care for children in low-income households.
When determining Section 7 expense sharing, courts consider eligibility for provincial subsidies and benefits that offset private insurance costs. Parents receiving social assistance under the Family Income Security Act may have children covered through provincial programs, reducing the need for private health insurance. Courts also consider whether a parent claiming Section 7 expenses has applied for available subsidies and tax credits as required under Federal Child Support Guidelines, s. 7(3).
Tax Implications of Child Health Insurance Expenses
Health insurance premiums and unreimbursed medical expenses may qualify for the federal Medical Expense Tax Credit (METC) when they exceed the lesser of $2,759 or 3% of net income for the 2025 tax year. The parent who pays Section 7 health expenses typically claims the medical expense tax credit, though parents may agree to alternate claiming years or allocate the credit to the higher-income parent who receives greater tax benefit. Separation agreements should address tax credit allocation to prevent disputes.
The proportional sharing calculation under Section 7(3) requires consideration of tax benefits relating to the expense. If a parent receives $500 in tax savings from claiming $4,000 in medical expenses, the net expense for sharing purposes becomes $3,500. This adjustment ensures neither parent pays more than their fair share after accounting for tax relief. Parents should exchange information about medical expense tax credit claims to accurately calculate net Section 7 obligations.
Documentation Requirements for Health Insurance and Medical Expense Claims
Parents seeking Section 7 contributions for health insurance premiums must provide documentation establishing the children's share of coverage costs. Required documentation includes the employer benefits enrollment form showing premium amounts for single versus family coverage, pay stubs reflecting premium deductions, annual benefits statements, and written confirmation from the benefits administrator of the amount attributable to dependent children.
For unreimbursed medical expenses, parents should maintain organized records including original receipts or invoices from healthcare providers, insurance explanation of benefits showing claim amounts and reimbursement, proof of payment such as cancelled cheques or credit card statements, and written prescriptions or referrals demonstrating medical necessity. Courts may deny Section 7 claims lacking adequate documentation or proof that expenses were necessary for the child's health needs.
Recommended Record-Keeping System
| Document Type | Retention Period | Purpose |
|---|---|---|
| Insurance premium statements | 7 years | Prove ongoing premium costs |
| Medical receipts | 7 years | Support Section 7 claims |
| Insurance EOB statements | 7 years | Document reimbursement amounts |
| Prescription records | 7 years | Demonstrate medical necessity |
| Tax returns with medical claims | 7 years | Verify tax credit allocation |
Resolving Disputes Over Health Insurance Obligations
Disagreements about health insurance coverage decisions, unreimbursed expense sharing, or premium cost allocation may require court intervention when parents cannot reach agreement through negotiation or mediation. Common disputes include disagreement over which parent's plan should cover the children, refusal to contribute proportional shares of premiums or unreimbursed costs, failure to maintain coverage as required by court order, and disputes over whether specific expenses qualify as necessary medical costs.
Parents should attempt resolution through written communication documenting positions and proposed solutions before filing court applications. Family mediation services available through New Brunswick's court-connected mediation program can help resolve disputes without litigation costs. If court intervention becomes necessary, the parent seeking enforcement or variation files the appropriate application with the Court of King's Bench, Family Division, paying the $100 filing fee.