What is the difference between earnings and earning capacity?
Earnings are the amount you currently earn but earning capacity is the amount you potentially can earn. The Court will not only look at the actual earnings at present but the ability to earn in the future.
For instance, a parent who is currently not able to work or only work part-time due to childcare restrictions may, in the future be able to return to full time work and therefore the Courts will take this into account.
Is my income taken into account in a financial settlement?
Yes and it would be subject to the same balancing process. For instance, if one party had a higher income than the other then their entitlement to a claim on the assets may be reduced.