Yes, if you meet the two-of-five-year residency requirement. If you moved out as part of the separation, your spouse's continued residency counts toward your use requirement under the divorce-related exception. Each spouse can potentially exclude up to $250,000 individually. Timing the sale strategically - before or after the divorce decree - can affect which exclusion amounts apply and how proceeds are taxed.
This article provides general educational information only. It is not legal, tax, financial, insurance, compliance, housing, brokerage, or professional advice. Rules, tax rates, obligations, enforcement practices, and market conditions vary by property, building, contract, municipality, and jurisdiction, and they change. Sellers should consult a qualified attorney, CPA, or other appropriate professional before making decisions based on their specific situation.
From the seller playbook: Divorce Sale Mechanics - Court Orders, Timeline, and Split Proceeds
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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