Medical bills quickly ate up the maximum on their health insurance, and there were child care expenses for their two older children while the Rapps stood vigil at the hospital.
"The incidental expenses, such as eating out two or three times a day, made for a really expensive spring and summer," says Rapp.
These methods can help some divorcing couples find a mutually agreeable settlement that would otherwise elude them. Most IRAs (but not the Roth or Education IRAs) and qualified employer-sponsored defined contribution retirement plans.
There may be one-time expenses related to the transition, such as making a down payment on a new house or paying attorneys fees.
His wife, a contract employee working from home, lost her job.
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Even many of those who kept their jobs may have resorted to using credit cards and other lines of credit to offset salary cuts or pay for unexpected expenses.
If you've found yourself overextended with your credit, you may be tempted to liquidate your long-term savings, such as cash values on life insurance policies and your 401(k) or IRA accounts, to pay off debt.
After the buyout, Rapp, a manager in the technology industry in Columbus, Ohio, was asked to take a 10 percent pay cut, along with his co-workers."That in itself was survivable," says Rapp.