When Your Spouse is Unemployed

Losing an Income in a Two Person Family

May 12, 2009 Mary Lozinski

When one person in a couple loses their job, it can mean financial and emotional upheaval. There are ways to survive.

For a couple used to a lifestyle with only moderate financial concerns — is a new sofa in the budget, perhaps, or can a trip be planned — the sudden loss of half the income can be a major shock. It takes time to come to terms with it, and it impacts all the couple's plans.

When the lifestyle is based on two incomes, the loss of one can be devastating emotionally and financially. Learning to work with a single income isn't easy. It may not be possible in the long term. Still, there are steps to take that will buy time for the unemployed partner to find a new position.

Planning forOne Income.

• Retrench- Open the lines of communication. Without full disclosure to the partner, the impact can be far worse. There will be many emotions that need to be acknowledged and dealt with. Small things, like the loss of a comfortable routine, or larger things, like needing to re-vamp the budget, can cause strife that will be magnified because of the circumstances. Acknowledge this and be aware of it.
• Review- The unemployed partner may be eligible for government assistance. Be certain this avenue is explored. Find out how much will be paid and for how long, and what is required of the unemployed partner to be eligible to receive it.
• Go over the budget and see where the money is going. See how the circumstances change with one partner no longer employed. For instance, perhaps a long commute has been eliminated- call the insurance company and let them know.
• Verify the savings available, not neglecting things like life insurance, which can be a possible source of income if dividends have accrued. Suspend automatically deducted retirement and education savings plans to ease the pressure on your bank account.
• Examine entertainment. Being out of work doesn’t mean being antisocial, but it does necessitate some changes. A barbecue on the back deck and a movie on the TV can be as much fun as dinner out and a movie on a big screen.
• Look at the wardrobes. The job hunter should have two good interview outfits, and the employed partner still needs to maintain their usual appearance at work.
• Be aware of possible health issues and the way stress can affect the body. Exercise can be the last thing the unemployed partner wants to do, but it’s even more important than before.

Living with One Income

• Renegotiate- Evaluate the total amount of debt and research alternative ways to service this. It is not necessary to go to the same bank or mortgage company that holds the debt. There are many companies out there, and many qualified financial advisers who can assist with information on options.
• It is important to be honest when speaking to an adviser. The aim is to avoid ending up in a worse situation by falling behind. Especially now, banks are realizing it is more profitable to help out a client than force them into bankruptcy.
• Reconnect- Remember, it can all change with a phone call. The state of unemployment won’t last forever. There will be high times and low times, and this can be a test of the partnership. Take the time to spend together. Find interesting things to discuss with one another.

It’s not the most comfortable time, but it can be the most illuminating, and it can prove the strength in any relationship as long as the lines of communication are kept open.

The copyright of the article When Your Spouse is Unemployed in Personal Budgeting/Finance is owned by Mary Lozinski. Permission to republish When Your Spouse is Unemployed in print or online must be granted by the author in writing.

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