income shares model

The income shares model is a method used to estimate the economic value of a person's future earnings, often employed in areas like child support and divorce settlements. It calculates how much income a child would receive if the parents were living together, based on their incomes. This model helps ensure that the financial support provided reflects the standard of living the child would have experienced if the family unit remained intact. By considering both parents' contributions, it aims for fairness and equity in financial responsibilities.