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My husband was between jobs (isn’t a lawyer) and was in a similar predicament. Ultimately he decided go hold off and took 4 months off to spend with the baby - it was the best months of our lives & he wouldn’t take it back for a second. We were able to live off savings & my Mat leave so we’re in a privileged position but I couldn’t recommend it more. A friend of ours was similarly laid off from a job about 4 weeks before his baba was born and ultimately ended up home with the baby for 5 months alongside his wife and similarly says it was the best thing for his family, his relationship and his own mental health. I’d say apply early next year for roles after your paternity leave would have ended, you can easily explain the gap in your resume.
I would say it depends on your financial situation. But if you can manage it, take the time off with your soon to be newborn. It is such a rate opportunity that I feel few would have regrets about. Career wise, I feel like you could easily explain the resume gap.