Hi,

My MI divorce was final in 2007 and part of the agreement included a QDRO for 50% of my 401k to her. She cashed in the 401k to use as a down payment on her house. I understand that cashing in the 401k is considered income during filing of taxes, but is it also considered income for child support and spousal support calculations in year 2?

Thanks in advance for your help.

Did she cash in the entire 401K? If she was only entitled to 50% and got the whole thing then a judge may rule that your half will count as spousal/child support. If all she got was her 50% of the 401k then no it won't count as anything other than her 50% income that she was already entitled to.

She received 50% that she was entitled to, but my question is does the 50% she received and cashed in count toward child and/or spousal support as income earned the year she cashed it in to be used in the support calculations the following year?

Thanks in advance.

No it would not be because it was an award from the marriage decreed by a judge. That amout would be held separate as a windfall for calculating child support orders. Most orders can only be reviewed every 2 years unless extrodinary circumstances bear into question. You could always take it before a judge but that's my understanding of it. Cunsult your lawyer that handled your case and maybe they may be able to define it better for you.