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5 Ways You Can Lose Your Household Income

Unfortunately, we all need money to live, and therefore we rely on a regular income coming into our household.  Sometimes fate deals us a bad hand, and our financial support network can come crashing down around us. Loss of income can be devastating and can cause massive friction between couples, lead to relationship break-ups or even emotional breakdowns. Here are 5 ways you can lose your household income.

Accident

Accidents happen, and sometimes they can be so severe that a person can be unable to work for an extended period of time.  If the person who has the accident is the sole income earner in the household or runs their own business, it can cause devastating damage to a family’s economy.

If the accident was not the fault of the person injured but somebody else – such as a pedestrian accident where a reckless driver has mounted a sidewalk and hit the person, the victim can claim monetary compensation through an accident attorney. Money received through a successful claim should help replace any lost income from time off work.

Illness

A serious illness can lead to a person having to stay off work, especially if it is a disease such as cancer that will cause them to need extremely long absences.  Some companies will pay their employees sick pay for a set length of time, but this will reduce over time.  If you have a mortgage, you may be allowed a payment break, or you might have an insurance policy that covers your mortgage payments in emergencies.

Redundancy

If a business hits hard times, it may enforce redundancies. If this happens, then a person’s household income will be lost. However, an employee may be entitled to a redundancy package – the amount being dependent on the length of service an employee has given. If money is tight, it makes sense to apply for any government support packages available.

Sacking

Sacking is one of the worst ways to lose an income because it means you have most likely lost your job due to your own behavior or attitude and will not receive any termination packages. Suppose you genuinely believe you have been unfairly treated or dismissed. In that case, you can hire an attorney who specializes in employment law to help fight your corner so that you can receive compensation or acknowledgment that the sacking was not your fault.  Sacking is a black mark on your CV and will not be looked upon favorably should you apply for other jobs. 

Divorce

If your partner is the breadwinner in your family and you split up, you will be left with no income.  If you have children, your partner will be liable to pay a part of their daily expenses.  If you are married, you will be entitled to a share of assets and savings. However, if you are not legally married, this may be more difficult, and you may not be entitled to as much as you would if married.