You Got a Severance Package. Here's Your First 90 Days.

Henry Supinski, ChFC® · 5 min read · July 2026

A layoff is disorienting, and the paperwork lands fast. Before you sign anything or make a big decision, it helps to slow down and work through the pieces in order.

Weeks 1-2: Don't Sign Under Pressure

Most severance agreements come with a review period, often 21 days or longer, plus a revocation window after signing. Use it. Read the release language carefully, understand what you're giving up, and if the offer includes equity acceleration or a longer COBRA subsidy, don't assume the first number on the page is the final number.

Weeks 2-4: Health Coverage and Cash Flow

Figure out your health insurance gap before it becomes urgent. COBRA keeps your existing plan but is expensive; a marketplace plan may be cheaper depending on your household income during the gap. At the same time, build a real cash flow picture: the severance amount, any unused PTO payout, unemployment eligibility, and how long that combination needs to last.

Weeks 4-8: Equity and Timing

Check your vesting schedule and any post-termination exercise window for stock options. Some companies give you only 90 days to exercise vested options after departure, which can force a decision (and a tax bill) faster than you'd like. Know these dates before they sneak up on you.

Weeks 8-12: The Bigger Decision

• Resist the urge to take the first offer that shows up out of anxiety about the gap.
• Decide whether a lump sum severance changes your tax picture for the year, and whether it's worth an estimated tax payment.
• Use the pause, if you can afford it, to actually think about what's next rather than defaulting to the nearest similar role.