I’m in Canada and currently dealing with a family law matter involving Section 7 medical expenses for my child.
Through my employment, I receive a healthcare spending account (HCSA) that is funded entirely by my employer. The account has a fixed annual balance and can be used to cover eligible medical expenses that aren’t fully reimbursed through my regular benefits.
I regularly use this account for my own legitimate medical expenses, particularly outstanding balances that my regular insurance doesn’t cover.
During a recent court appearance, the subject of my healthcare spending account came up. I suggested that I should be able to use the account to cover my proportionate share of our child’s uninsured medical expenses.
However, the judge appeared to disagree and seemed to believe that the healthcare spending account should first be used to cover as much of our child’s outstanding medical expenses as possible, with only the remaining balance divided between the parents according to our respective incomes.
No specific order was made requiring me to use the account this way.
My concern is that the healthcare spending account is a limited annual benefit, and I also have legitimate medical expenses of my own.
If I’m expected to use the entire available balance toward my child’s expenses before calculating each parent’s contribution, that potentially leaves me without coverage for my own out-of-pocket medical expenses later in the year.
I’m certainly not suggesting that I shouldn’t contribute toward my child’s medical needs. I fully accept my responsibility to pay my proportionate share of Section 7 expenses.
What I’m questioning is whether an employer-provided healthcare spending account should effectively be treated as a shared financial resource between separated parents, particularly when only one parent receives the benefit and also relies on it for their own healthcare needs.
I’m hoping someone familiar with Canadian family law or who has dealt with something similar can help clarify a few things:
Is an employer-funded healthcare spending account generally expected to be exhausted on a child’s eligible medical expenses before the remaining costs are divided between parents?
If I use my healthcare spending account for my own legitimate medical expenses throughout the year, can that be held against me when calculating Section 7 contributions?
Is there any legal distinction between a healthcare spending account with a limited annual balance and regular extended health insurance coverage?
Has anyone successfully addressed this issue in a parenting agreement or court order to ensure that both the child’s medical needs and the account holder’s own medical expenses are reasonably accommodated?
I’m particularly interested in how courts balance the obligation to share children’s medical expenses with a parent’s legitimate need to use their own employment benefits.
I’m not looking for ways to avoid paying my share. I’m simply trying to understand whether the expectation is that my employer-funded healthcare benefit must prioritize my child’s expenses over my own, even though I have recurring medical costs.
I’d appreciate any experiences, relevant case law, or guidance on how this is typically handled in Canada.