What to do when your spouse loses their job
If you depend on your spouse's job to help cover your day-to-day expenses and save for the future, it can be hard to hear that they've been let go at work. And you may not be sure what to do when your spouse loses their job.
Once you've gotten over the shock, there are steps you can take together to get through this shakeup. Here's a comprehensive rundown from Freedom Debt Relief of what to do when your spouse loses their job.
Key Takeaways:
When your spouse loses their job, it can have a financial and an emotional impact.Figure out health insurance and unemployment benefits ASAP.Look for ways to cut spending, and to support your spouse in their job search.
The First Things To Do When Your Spouse Loses Their Job
Supporting your spouse when they lose their job can make a tough situation easier. Your spouse may need at least a few days to get over the shock and regroup.
Give your spouse some space to wallow, and encourage them when they're feeling down. But also focus on these moves.
Figure out health insurance
If you relied on your spouse's job for health insurance, you need to figure out another way to get coverage. If you're working, see if you and your spouse can get onto your employer-sponsored plan. If that's not an option, consider COBRA (a law that lets you continue employer-sponsored coverage, if you pick up the employer's part of the cost) or more affordable solutions like the Affordable Care Act Marketplace. You can also find out if you qualify for Medicaid.
Sign up for unemployment benefits
Do this right away because there's often a mandatory waiting period after you file before benefits kick in. Unemployment benefits won't replace your spouse's paycheck in full when they lose their job, but they can replace a portion. You're generally eligible for unemployment benefits when you lose a job through no fault of your own. Benefits are usually paid weekly, and the amount you get depends on your state and your former salary.
Find out about severance
It may be that your spouse is entitled to a severance package, which could put some money in your pockets while they begin a job search. Encourage your spouse to talk to their human resources department for details.
Find out whether your spouse can cash out unused sick or vacation time
If your spouse accrued sick or vacation days that they didn't use by the time they were laid off, they may be eligible to get paid for that time. This, too, is a question for the human resources department.
Get on a budget
It's important to maximize your joint income when a spouse loses their job. Create a budget and aim to find expenses you can cut back on temporarily. You may be able to pause subscriptions, a gym membership, or even your mortgage payments if you're in the midst of a financial hardship.
Assess your savings
If you have an emergency fund with enough money to cover a few months of bills, see if that can take some of the pressure off while your spouse regroups. You should still get onto a budget and trim expenses, but it's helpful to know how long your savings can sustain you.
Know your rights
If you think your partner was discriminated against in the course of losing their job, there may be something you can do. Check with your state's Department of Labor or search online for legal aid groups. You can also contact employment attorneys. Many offer a free consultation in which they offer an opinion on whether you should move forward with a case against the employer.
Priorities to Focus On During the Job Search
When you get upsetting news, it can be tough to deal with at first. But after the reality of unemployment has set in and a few weeks have passed, consider doing the following.
Get a handle on your debt
While debt management with a loss of income is hard, it's not impossible. If you can no longer make your debt payments, contact your creditors and lenders to find out what options are available. They may allow you to make partial payments or defer your payments, especially if you've always paid on time. You can also potentially avoid adding to your debt by dipping into your emergency fund or picking up a side gig to pay for basic expenses.
Support your spouse's job hunt
There are a few ways you can help your spouse while they look for a new job. Be a sounding board for resume updates. Keep your eye out on sites like Indeed, LinkedIn, and Monster for positions that you think may pique their interest, or that might be something new to consider. Reach out to your professional and social network to drum up leads. Most importantly, help keep your spouse's spirits high, and reassure them that they will eventually land a job.
Stay mentally and physically healthy
It's important to keep your spirits-and your spouse's-up when they lose their job. Having no routine could be tough on your spouse, so try to find ways to get them moving and out of the house. That could mean going for a walk together every evening when you get home from work, or finding an online yoga class.
Tap career resources
Your spouse may be eligible for employment and training programs offered by your city or state. Or there may be free courses online that can help your spouse boost their skills. Help them look into their options so they don't feel like they're going through this alone.
Strategies for Getting Through a Long Job Search
You can hope that your spouse will find a job pretty quickly after losing one. But that may not happen.
Many employers have lengthy interview processes that can take months to complete. And also, it's important for your spouse to find a new job that's a good fit. But if your spouse's job hunt seems to have stalled, you can do the following.
Help your spouse change industries
If your spouse hasn't been able to find work in their field, it may be time for them to consider expanding their horizons and changing industries. Find out which industries are in high demand, and discuss those options. If your spouse expresses interest in one of them, there may be training and education programs to enroll in. Try to frame your spouse's career change as an exciting opportunity, as opposed to something they're doing out of necessity.
Rethink near-term financial goals
You may have had plans to remodel or buy a home, pay off your car, or start a college fund for your children this year. Your spouse's unemployment may force you to temporarily rethink your financial plans. But remind yourselves that you're not giving up on your goals-you're just shifting them a bit due to circumstances outside your control.
See if you're eligible for government benefits
If your household income has taken a big hit, you may be eligible for certain benefits you weren't entitled to before. These could include Medicaid and SNAP.
Research whether moving might help
If your spouse is having a hard time finding work where you live, it may be time to consider a move. Or you may decide to move to lower your costs while your spouse is in the midst of a career transition. Research different parts of the country together to see what options you have.
Be creative about income
If it's been a while since your spouse collected a paycheck and their unemployment benefits are running out, find creative ways to boost your income. Rent out an in-law unit you don't use; sell stuff you no longer want or need; get a part-time job; and do whatever else you can think of to make some extra money. And remember: This too shall pass.
Be a sounding board
Being unemployed long-term can be tough, but your support can get your spouse through it. Commit to being a sounding board throughout their job search. Celebrate their wins, like getting interviews, and let them vent when they're down, like when they're passed over for another candidate.
Consider debt relief
If the loss of your spouse's job has made your debt situation worse, it may be time to explore options for debt relief. A debt relief company can help explain your choices, and help you find a solution that can put you on the path to a better financial future.
Frequently Asked Questions
Will losing a job hurt my credit score?
The loss of a job won't directly affect your credit score, since employment isn't a factor in calculating it. But the loss of income you experience could cause you to fall behind on your debts. That, in turn, could result in a lower credit score.
Can I pause my debt payments if I've lost my job?
That's up to your lenders and credit card issuers. Contact them and let them know your situation. They may agree to pausing your payments for a time without reporting you to the credit bureaus as delinquent on your debt.
Should I take out a loan if I've lost my job to cover my expenses?
It can be tricky to qualify for a loan if you don't have an income. Plus, you might struggle to pay the loan back if you aren't working.
This story was produced by Freedom Debt Relief and reviewed and distributed by Stacker.
© Stacker Media, LLC.
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