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 lost their job.

So what to do when your spouse or partner loses their job? There are a number of steps you can take to support them and manage your financial situation in the short term, medium term, and long term:

• Switch your health insurance and set up unemployment benefits

• Show support for your spouse, this is a tough time

• Manage your spending and control your debt load

• Lend support during the job hunt

• Work with your spouse to make big changes if needed, like a shift in industry or a change in life goals

Here are more ideas on what you can do if your spouse has lost their job.

Short term

Right after your spouse loses their job, remember to do these things first. In a stressful time, it can be tough to slog through paperwork:

• Shift health insurance: If you relied on your spouse’s job for health insurance, you’ll need to figure out another way to obtain coverage. In the event you’re lucky enough to still be employed, find out if you and your spouse can get on your employer-sponsored plan. If this isn’t an option, consider COBRA or more affordable solutions like Medicaid or the Affordable Care Act Marketplace.

• Sign up for unemployment benefits: While the extra $600 per week in pandemic unemployment benefits may expire at the end of July, you may still remind your spouse to apply for traditional unemployment benefits. The amount your significant other will receive will depend on your gross income and the state you live in.

• Be supportive: Job loss can take a serious toll on your spouse’s mental health, especially if they enjoyed their work or were with their company for quite some time. Be vocal about letting them know that you will do whatever it takes to help them get back on their feet.

You’re a team. You got this.

When your spouse loses their job, it can feel like the ground beneath your whole family has shifted. Besides the fresh financial worries, the job loss can also be a serious blow to your partner's confidence. 

Job loss is a big challenge, to be sure, and could lead to a financial emergency. But it's one you can tackle as a team. Here's a roadmap to help you navigate this unexpected life detour.

Get a handle on money matters

First things first. Keep track of your money. 

Make a list of everything you spend money on. Focus on necessities, because as long as your income is reduced, you’ll need to stretch your dollars farther. Necessities include housing, groceries, transportation, insurance premiums, minimum debt payments, prescriptions, and childcare. 

Consider pausing spending on other expenses, especially convenience items like streaming services, restaurant meals, clothing, and travel. 

Some spending will be your judgment call. For instance, your kids’ gymnastics classes are definitely not a need, but if you have an emergency fund or your spouse’s job prospects are good, you might decide to keep paying for them. 

Put yourself in budgeting bootcamp

If you don’t know your budget yet, that’s okay. Making a budget is easy. Now’s a great time to brush up your budgeting skills budget because it’s a good idea to set limits on each spending category while your income is reduced. 

Track your income and your spending. An easy way to do this is to use your debit card for everything and sync a budgeting app to your bank account. You could also track your spending the old fashioned way with a pencil and paper. The method doesn’t matter so much as having a clear picture of how much is coming in and how much is going out.

You May Like These

What the Latest Jobs Report Could Mean for Your Finances

How to Get a Home Equity Loan with Bad Credit

Is a College Education Worth It?

Mid term

After the reality of unemployment has set in and a few weeks or months have passed, consider doing the following.

• Manage debt: While debt management with a loss of income is hard, it’s not impossible. If you can no longer make your debt payments, consult your creditors and lenders to find out what options are available to you. They may allow you to make partial payments or defer your payments, especially if you’ve been a responsible borrower. You can also avoid adding to your debt by dipping into your emergency fund or picking up a side gig to pay for basic expenses.

• Control spending: Now is the time to keep your spending to a minimum. Take a look at your budget and figure out what you can cut. By getting rid of that gym membership you never use, cutting the cord on cable, and cooking at home instead of ordering take out, you and your spouse may find it easier to get through this financial roadblock.

• Support the 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. Most importantly, help keep their spirits high and reassure them that they will land a job. They’d do the same for you, right?

Know your rights

Your spouse can check with their former employer’s human resources department to find out what resources are available. For instance, there may be severance pay, or your spouse may be eligible to file for unemployment benefits. Some companies offer job search assistance to employees who were laid off. Take advantage of any offer for help that comes your way.

If you think your partner was treated unfairly when they lost their job, there might be something you can do about it. Check with your state Department of Labor, or search online for legal aid groups. You can also contact employment attorneys. Many offer a free consultation where they’ll offer their opinion on whether you should move forward with a case against the employer.

Stay healthy

Losing health insurance can be scary, especially if your spouse was receiving healthcare under the plan they just lost,. There may be other ways to stay covered and continue receiving care. If you work and have coverage, job loss may be a qualifying life event that allows you to add your spouse to your own health plan outside the window for open enrollment.

You might qualify for your parents’ health plan if you’re under 26 years old.

Another option is COBRA. COBRA is a federal law that gives workers the right to continue their health coverage for a period of time under certain circumstances (including job loss).

Long term

In a perfect world, your spouse would secure a job quickly. Due to the economy, however, this may not happen. If their unemployment lasts for 12 months or more, consider:

• 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 change industries. Find out which industries are in high demand and discuss the options. If they express interest in one of them, there may be training and education programs to enroll in. This can be hard if you have been in the same industry for a long time, which is why your spouse is going to need your support.

• Re-organize life goals: Let’s say you had plans to remodel or buy a home, or pay off your car. Your spouse’s unemployment may force you to re-organize these life goals. The good news is you still have options for keeping your finances stable:

1. Apply for additional government benefits: You may be eligible for government benefits that were not available to you in the past. These include Medicaid, the Supplemental Nutrition Assistance Program (SNAP), or the Temporary Assistance for Needy Families (TANF).

2. Move: If your current home is too expensive, don’t be afraid to move to a more affordable apartment, condo, or house. Forgoing the granite countertops and pool may even make you happier by taking financial stress off your back.

3. Look for new sources of 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 money until you or your partner return to full-time employment. This too shall pass.

Find resources that could help you

Don’t be afraid to research and ask for help. Job loss may present you with opportunities to take advantage of resources such as:

• Free employment and training programs offered by your city or state

• Local career centers where you can use computers and print resumes

• Government financial assistance, such as food stamps

• Temporary change to your child support order (you have to request it from the court)

• Food pantries offered by community or religious organizations in your area

• Low-barrier part-time work opportunities like ride-sharing services, local warehouses, or call centers

Stick together

You and your partner can get through this together. Losing a job can be a tremendously stressful time, and financial problems are a common cause of relationship conflict. Be nice to each other, and join forces to actively put the pieces back together. This is a time when you might need to heavily rely on each other for comfort and moral support. Getting through rough times often brings couples closer together. Take action daily and focus on the solution.

Consider debt relief

If a spouse’s unemployment has you facing debt or you are more worried about falling behind on debt payments, it might be time to take a bigger step. Freedom Debt Relief is here to help you understand your options for dealing with your debt, including our debt relief program. Our Certified Debt Consultants are trained to help you find a solution that can put you on the path to a better financial future.