earning capacity

earning capacity. A person’s ability or power to earn money, given the person’s talent, skills, training, and experience. • Earning capacity is one element considered when measuring the damages recoverable in a personal-injury lawsuit. And in family law, earning capacity is considered when awarding child support and spousal maintenance (or alimony) and in dividing property between spouses upon divorce. — Also termed earning power. See LOST EARNING CAPACITY.
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