Partner might stop working - what do I need to know?

Submitted by newwjusef t3_11dzphc in personalfinance

My partner and I are expecting a child soon, and they were also just informed they’d be laid off in a few months coincidentally (weird company move but w/e). I make several times what they do, and given that, we’re thinking there’s a high chance they wouldn’t go back into the workforce for a while and would instead be a stay at home parent.

As we transition to one income, are there any changes we need to proactively think about besides ones like having a bigger emergency fund due to more risk, etc? Any advice from people who have done this before?

2

Comments

You must log in or register to comment.

blackmetalwarlock t1_jabtvdi wrote

I had to stop working due to my pregnancy being absolutely horrific. Something I did was looked into “on call” jobs to work a few days a month or so when I was well.

If you are not married, I would recommend she applies for medicaid, ebt, and WIC. These things have been very helpful for me personally. I think she may qualify for medicaid even if you two are married depending on the state and circumstances so no harm in applying.

If she gets insurance through her job & does not qualify for medicaid, you can get COBRA.

3

KReddit934 t1_jacfp3e wrote

Figure out the insurance first.

Then start living on your salary only today (well, March 1st). Rework your budget now so that their entire check is going into savings. Also add the 100 (ask around for estimate) a month line item for diaper costs into this new trial run budget...which also goes into savings until needed.

By making the adjustment to budget now, it will remove a lot of the stress during that sleep deprived "4th trimester"

2

newwjusef OP t1_jad00na wrote

Makes sense, that’s helpful. Once challenge is that my comp has changed significantly y/y (this year alone the growth from 22 to 23 will be over 2x their entire pay). So we don’t really budget.. but probably should start.

1

KReddit934 t1_jad0jph wrote

It's a good idea for every income level to budget. 🙂

1

Laraujo31 t1_jacrtd7 wrote

The big one is insurance. Make sure everyone is covered under your plan (if your job has one) or look for one in the marketplace. If you are not married, then she may qualify for Medicaid etc. As for budget, I don't know what your financial situation is but i would cut back on unnecessary costs (1 car instead of 2 etc.) I would also keep an emergency fund.

1

newwjusef OP t1_jad6f1u wrote

Makes sense - they'll go on my employer's insurance. And also makes sense on the bigger things like cars, we have two that are fully paid off and will likely sell one and upgrade but buy it out in cash w/o a loan.

1

Laraujo31 t1_jadaa8a wrote

Yeah, my wife stays at home with the kids and we only have 1 car. However, we live in a city where public transportation is readily available so if i am not available she has a way to get places.

Congrats on the baby! I would look into paternity leave options where you live. If your salary is fully covered then i would take it.

1

newwjusef OP t1_jadbdjd wrote

Thanks! I get 4.5 months so will take most of that.

1