What are Personal Damages?
Personal damages refer to the financial losses an individual suffers as a direct consequence of injury or harm. This most commonly includes loss of earnings, loss of pension entitlements, loss of future earning capacity, and other special damages related to the incident. Quantifying these losses accurately is essential in ensuring the injured party is restored to the financial position they would have occupied had the injury not occurred.
How I Can Assist with Quantifying Your Personal Damages
As a specialist forensic accountant, I provide independent and detailed financial analysis to quantify losses arising from personal damage, focusing on the economic consequences such as:
Loss of Earnings: Assessing past and future income lost due to the inability to work, whether employed or self-employed.
Loss of Pension Rights: Calculating diminished pension benefits resulting from reduced or ceased contributions post-injury.
Loss of Future Earning Capacity: Evaluating reduced potential to earn over the claimant’s working lifetime.
Loss of Dependency: Quantifying financial losses suffered by dependants where applicable.
My Approach to Loss Quantification
Initial Review and Consultation: I begin by gaining a thorough understanding of the circumstances surrounding the injury and reviewing all relevant documentation, including medical reports, employment contracts, and financial records.
Detailed Financial Analysis: Utilising a ‘but for’ scenario, I reconstruct what the claimant’s financial position would have been if the injury had not occurred. This involves historical earnings data, expected career progression, inflation, tax effects, and any mitigating factors.
Consideration of Offsets and Savings: Reasonable savings or costs avoided as a direct consequence of the injury are accounted for to ensure an accurate and fair quantification.
Robust Reporting: I prepare comprehensive, clear reports detailing the calculation methodologies and findings, suitable for submission to solicitors, insurers, or the court.
Expert Witness Services: If required, I am available to provide expert testimony, explaining complex financial matters clearly.
Why Engage a Forensic Accountant for Personal Damages?
Quantifying personal damages involves intricate financial analysis, understanding legal principles relating to damages, and applying complex economic forecasts. A forensic accountant’s expertise ensures:
Independent and objective calculation of losses based on sound accounting and economic principles.
Transparent and defendable reports that withstand scrutiny.
Clarity and precision in assessing and communicating damages in legal and negotiation settings.
Specialised knowledge of pension valuation and self-employment income assessment, often critical in litigation.
If you have sustained an injury resulting in financial loss and require expert assistance to quantify your damages precisely and professionally, please contact me to discuss how my forensic accounting services can support you.