Some great discussion here, I appreciate all the replies.
My friend Jan's DH started with a new employer in September. I'm not certain of his circumstances, but I believe his vacation time is limited to 10 days until his one year anniversary mark, and he just used 3 of those 10 days after his father passed away unexpectedly. I do believe he plans to save the remainder for when the baby is born, so hopefully they can coordinate something there. Jan's parents aren't local, and I think they were going to see if her DH's parents could watch the baby for some of the time but with his father's passing, personally I think it would be a lot to impose. I'm the same age as Jan and I can't imagine my mother trying to take on a newborn 40 hours a week. She'd be lost! LOL.
I'm familiar with the concept of "donating" PTO time to your co-worker - I've heard of that in other companies. I'm not sure if they permit that where we work, I'm not sure if it's ever come up. Definitely something worth looking into!
Right now I think Jan is leaning towards resigning and taking her chances. I'm not sure if I agree with her approach, I think I'd be a nervous wreck knowing I may not have a job. But many of you are right in that our company doesn't fully value the work life balance like many others do, and perhaps a more flexible or even part time position would better suit her. Guess we'll see what happens!