Role of Financial Experts Witness in Auto Accident Cases
Expert witnesses can help strengthen your auto accident case by shedding light on the technical aspects of the case. A financial expert is one of the expert witnesses you may need. Below are some of the areas in which a financial expert may help you.
Lost Income
Lost income does not always involve complicated calculations. For example, you just need to present your past pay stubs plus evidence of missed days off work (a letter from the employer may suffice) if you are an employee with regular income.
However, the calculations are complicated if you don't have a regular income. That might be the case if you are an independent contractor or entrepreneur. In such a case, you may need a financial expert to help you prove lost wages. In such a case, you may need a financial expert to:
- Scrutinize your past tax returns to estimate your typical income
- Evaluate canceled contracts to determine how much you have lost since the accident
- Evaluate your work records to determine how much work you regularly got before the accident
- Asses missed business opportunities to determine how much you would have made without the accident
The expert witness will use multiple records or evidence to determine your true lost income in most cases.
Loss of Earning Capacity and Future Income
While lost income addresses past damages, loss of earning capacity involves the future loss of income that the accident might cause you. Loss of earning capacity is substantial if your injuries are long-term or permanent.
Again, the loss of earning capacity calculation might be simple if you have a regular income and your injuries are not permanent. Otherwise, you need an expert financial witness to prove these damages. Below are some factors your expert witness may evaluate for their testimony:
- Your age — The younger you are, the more income you might lose in the future.
- Your life expectancy — A long life expectancy increases your lost future income.
- Your work — Your work and income history affect your projected future income.
- Degree of incapacitation — The more incapacitated you are, the higher your loss of earning capacity is.
- Your education, abilities, and skills — These factors determine alternative work you can do if you cannot resume your pre-accident work.
- History of career progression and benefits — Past promotions, bonuses, and commissions may indicate the future nature of your job.
Again, multiple factors will determine your future earning capacity. The defense side might also present expert testimony to contradict your claims.
Inflation and Cost Of Living
Your auto accident claim may include both present and future damages. Apart from the loss of future income, other future damages include medical treatment, pain, and suffering. Inflation and cost of living increases may affect such future losses.
Inflation is the natural increase in price levels over time due to economic changes. Cost of living refers to the budget you need to maintain your lifestyle. All of these can affect your damages in different ways. For example:
- The cost of your medical treatment might increase over time
- Your rent might increase in the future
- Childcare costs might increase in the future
You may need an expert witness to help you prove how all these might affect your future damages. The expert witness may review the economy, inflation history, and your lifestyle to determine the extent of the effect. That way, you may receive the real damages that you deserve.
Higinbotham & Higinbotham, PLLC, has a combined experience of over 130 years in personal injury law. We can analyze your case, determine the best approach to give it, and help get any expert witnesses you might need. Contact us today for a free initial consultation of your case.
