If my husband takes a loan from his 401K to pay off some debt, can this money from the loan be used in calculating child support?
~Thanks!
My understanding is that only regular (regular occurring) income is used for child support. Bonus’s for instance can be used to calculate income if they are received regularly.
A loan isn’t income, and is therefore not used to calculate child support.
I agree that only regular income is used for child support and a loan is not considered as an income. In spite of 401(k) loans making good financial sense in theory, the quantity of 401(k) loan defaults is still higher than normal. In fact, a number of people have trouble paying them back once they take from their retirement funds. Your husband may experience the same problem.
Loan and income are two different things and this loan money cannot be used for the child support.
paris