Going through a divorce and don't know whether to buy out spouse with 401K or take out a heloc.
We owe 165,000 on our home at a 2.6% rate. The home is valued at 500,000. In Florida with high homeowners and property taxes our mortgage is 2300/mth. This payment is definitely doable on my salary which is 94,000. I have to buy him out of the house which is around 170,000. His 50% of his 401K will be around 450,000 which I know can be transferred to mine via a QDRO with no penalty. My predicament is do I pay the 20% taxes and pay him out of the 401K or do I take out a heloc which will increase my monthly mortgage payments. Alimony and child support have not been determined as of yet so should I wait to see if I can afford the heloc? My lawyer doesn't think alimony will be a lot even after 27 yrs and his income being twice mine since I make a decent wage. Finance is not my strong point but ask me anything medical and I can help you. Thanks for all advice