Calculating loss of earning capacity is a crucial step in determining damages in support litigation cases. It involves estimating the amount of money that an individual would have earned over their lifetime had they not experienced a disability or injury that prevented them from working. This calculation is used to determine the amount of financial support that should be provided to the individual in order to compensate for their lost earning potential.
There are several factors that must be considered when calculating loss of earning capacity, including the individual’s age, education, training, and work history. The individual’s earning capacity prior to the disability or injury is also taken into account, as is the likelihood of their being able to return to work in the future.
To calculate loss of earning capacity, it is first necessary to determine the individual’s expected earnings over their lifetime. This can be done by looking at their past earnings and taking into account factors such as salary increases and promotions. The individual’s expected earnings can also be estimated based on their education, training, and work experience.
Once the individual’s expected lifetime earnings have been determined, the amount of money they would have earned since the time of the disability or injury must be calculated. This can be done by multiplying their expected earnings by the number of years they would have worked since the time of the disability or injury.
Finally, the amount of money that the individual has actually earned since the time of the disability or injury must be subtracted from the amount they would have earned in order to determine their loss of earning capacity. This calculation will provide a rough estimate of the amount of financial support that should be provided to the individual in order to compensate for their lost earning potential.
It is important to note that calculating loss of earning capacity is a complex process and can be influenced by a variety of factors. It is best to work with an experienced attorney or financial expert in order to ensure that the calculation is accurate and fair.