This paper develops a family economic model of German couples to analyze how the separation of couples is affected by unemployment. This paper also provides evidence relating the role of gender with family life. In particular, it focuses on how the husband’s more traditional role as income provider continues to remain pronounced, although the impact of short term fluctuations in that income affects both partners equally. Impacts of this sort are not as significant for unmarried couples, and the analysis posits this as a reason why German couples, particularly younger ones, prefer cohabitation rather than entering into formal marriage agreements. Finally, drawing from the results of this study, the authors recommend some public policy suggestions to support unemployed couples.