This study examines how unemployment insurance (UI) helps families weather the strain of job loss. Using household survey data linked to state-level changes in UI benefits, the authors show that more generous benefits reduce the likelihood that layoffs lead to divorce or separation and also moderate the impact of job loss on childbearing. Specifically, higher benefits cushion men from the increased divorce risk and lower fertility typically associated with layoffs, while also softening the effects of women’s layoffs, which otherwise raise the risk of separation and increase fertility. Overall, the findings highlight that UI not only stabilizes household finances but also plays an important role in promoting family stability and shaping family decisions.