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Simple English definitions for legal terms
future earnings
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A quick definition of future earnings:
Future earnings refer to the money a person could have earned if they had not lost their job, suffered a disabling injury, or died. It is often used as a measure of damages in personal injury and wrongful termination cases. Future earnings are a subset of lost earnings, which also includes past lost earnings. It is important to note that future earnings are not the same as income or revenue gained from labor or services, investment of capital, or assets.A more thorough explanation:
Definition: Future earnings refer to the income that an individual or business is expected to earn in the future. This can include wages, salaries, profits, and other sources of income.
Examples:
- Lost earnings: This refers to the income that an individual could have earned if they had not lost their job, suffered an injury, or died. For example, if a person is injured in a car accident and can no longer work, they may be awarded lost earnings as damages in a lawsuit.
- Retained earnings: This refers to the profits that a company has earned but has not distributed to shareholders as dividends. Instead, the company may choose to reinvest these earnings in the business or save them for future use.
- Future lost earnings: This refers to the income that an individual is expected to earn in the future but will not be able to due to a disability or other circumstances. For example, if a person is permanently disabled in an accident, they may be awarded future lost earnings as damages in a lawsuit.
These examples illustrate how future earnings can be used in legal cases to calculate damages or compensation for lost income. They also show how businesses can use retained earnings to invest in their future growth and success.