How Income-Based Caregiving Cost Splitting Works

The instinct is to split care costs equally. But a sibling making $40k and one making $150k don't experience a $500/month payment the same way. Income-based splitting means everyone pays what they can actually afford.

Why Equal Splits Create Resentment

Three siblings, $3,000/month in care costs. Equal split is $1,000 each. For the sibling making $150k, that's less than 1% of their income. For the one making $40k, it's 3%. That gap causes real problems.

Eventually the lower-earning sibling either goes broke or drops out. The point of income-proportional splitting is equal sacrifice, not equal dollar amounts. Everyone feels it the same.

How the Math Works

The formula is straightforward. Each sibling's share is calculated as their percentage of the total family income, applied to the total care costs:

Example: Three siblings with annual incomes of $60,000, $90,000, and $150,000 sharing $3,000/month in care costs:

• Total income: $300,000
• Sibling A ($60K): 20% → $600/month
• Sibling B ($90K): 30% → $900/month
• Sibling C ($150K): 50% → $1,500/month

What If a Sibling Won't Share Their Income?

Some siblings won't disclose their income. SibSplit gives them an equal per-head share and splits the rest proportionally among siblings who did disclose.

Factoring in Caregiving Time

Income is only half of it. If one sibling is driving to appointments, managing meds, and doing meal prep 20 hours a week, that's worth real money. SibSplit applies a caregiving time credit that reduces the caregiver's financial share.

Making It Official

Once everyone agrees, write it down. A personal care agreement gives everyone a reference point when questions come up six months later.