Most people understand that a family crisis can come at any time and wipe out the family’s checking savings and/or investment accounts. Many of the most common crises are often the ones that families do not plan for. These crises are often beyond the realm of insurance, or are notorious for stretching beyond the limits of the family policies. Other items create permanent damage to the family unit that prevents future recovery. Here are five family financial crises that every family should try an plan for, if they can.
Marital Discord
Divorce, child custody disputes and other issues between spouses can not only divide the family finances, it also decimates the bank accounts. Each of these trips to family court cost attorney fees, which can become uncontrollable if the disputes are contested by one spouse or both. Court costs also accumulate, along with the fees for mediators, home visits, social workers, investigators and other professionals.
The total costs of a contested divorce can reach well into the five figure range, more if the family has ample properties at stake or children involved. There is also the matter of supporting two separate households during the entire ordeal. Such an expense can lead a family into financial crisis fast.
Substance Abuse
Supporting a family member with a substance abuse problem may not seem like an expensive ordeal at first. This is one of those family issues that can be a slow drain on the finances as the addict goes through the lengthy process of kicking the habit. Rehab stays can reach into the five figure range, especially if the addiction is to an opiate-based drug (these require lengthier rehab stays and maintenance medications that can run up costs quickly).
A relapse can start the process all over again. Some addicts go through several rounds of treatment before they get completely clean. Substance abuse treatment for teens may be partially covered under the family insurance policy. Adult children, however, are usually not covered. The family is forced to pay out-of-pocket for such expenses.
Infertility
Many ambitious couples put off childbearing for many years. Oftentimes, fertility testing does not factor into such a decision. Once the time comes to start conceiving, the infertility diagnosis can be disheartening. It is also very expensive. Some health insurance policies may cover part of the fertility treatments. However, many couples are left to pay on their own. The process is very expensive. Multiple rounds of treatment are common and can cut deeply into the family finances. Some couples never do conceive, making adoption the only option. Costs stemming from infertility can reach well into the five figure range and beyond.
Birth Defects
Children born with a birth defect can require a lifetime of treatment. Cerebral palsy, spinal bifida, and many heart defects can quickly push the family health insurance beyond its limits. Many families end up spending down their bank accounts only to rely on public assistance to help care for the child. Lifetime care can reach well into the six figure range.
Delinquency
A rebellious teenager seems harmless, but one mistake can land the child a juvenile delinquent title. It can also mean years of court costs, attorney fees, fines, and other administrative costs. Expert Bail can help families in this time of crisis with one of these costs—bail money. Bail bondsmen can reduce the amount of upfront costs that families are responsible for. Everything else is up to the family.
These family crises do occur, but many people do not plan for them. Families should at least have a plan of action for the above situations and also those things like accidents and injuries which threaten the family’s bank accounts every day.