Determining Earning Capacity During a Divorce

The Vocational Expert has a role in Divorce proceedings that can save time and money for each side. While determining Spousal Maintenance, a Vocational Expert can be hired to conduct a Vocational Evaluation on either or both parties. This Vocational Evaluation is aimed at finding an earning capacity for the individual based on their education, work history and past earnings.


There are two basic methods the Vocational Expert uses to determine the Earning Capacity. The first method is to look at Actual Earnings. Second would be to determine the Potential Earning Capacity.




1. Actual Earnings


The Actual Earnings of a person allows the Vocational Expert the most amount of Face Validity possible in his or her report. The Earnings of a person are easily found in their tax records and from their previous employers, and are obvious evidence of Earning Capacity.


The argument that can be made against the Actual Earnings of an individual can be that the job is no longer available, or that the person would not be able to return to the same type of work and make a similar wage. The Vocational Expert must weigh this knowledge as they craft their report. For example, a plumber with an acquired back injury and lifting restrictions below 10 pounds, would not be able to return to work as a plumber.


Disability is one item that can limit the ability to use Actual Earnings to determine earning capacity, others include Age, and Geographical Locale.


2. Potential Earning Capacity


The Potential Earning Capacity of an individual is based on what the fair market value for their skills and abilities would provide. Essentially, even though a person may have never earned a dollar in their life, they may have the potential to earn.


To determine Potential Earning Capacity, the Vocational Expert weighs different information regarding the person's past. Education, Work History, Volunteer Work, and Hobbies can play a role in determining vocational possibilities.


Vocational Testing can be completed during a Vocational Evaluation that may help determine the skill and ability level of a person, or an interview and file review can be conducted. Often these methods are used together to produce a complete picture of a person and their Vocational Abilities. The report produced by the Vocational Expert needs to address how the individual's background would affect their Potential Earning Capacity.






For more information on determing Earning Capacity or to set-up a Vocational Evaluation, contact the experts at WRTWC.