Selling a House During a Divorce
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About selling your house
The house is often the biggest shared asset in a divorce, and deciding what to do with it can be hard. One spouse may want to stay, neither may be able to afford the payment alone, or both may simply want a clean break. Selling is one common answer. This page covers what usually has to happen for a sale during a divorce, the choices couples weigh, and the tax rules the IRS applies.
Who has to agree
If both spouses are on the deed, both generally have to sign to sell. Even when only one name is on the title, the other spouse may have rights in the house depending on state law, and a buyer's title company will want those addressed. Once a divorce is filed, many courts issue orders that restrict selling or transferring marital property without the other spouse's agreement or the court's permission. Before you sign anything, check with your divorce attorney.
Buyout, keep it or sell it
Taxes on the sale
The IRS lets many sellers exclude up to $250,000 of gain from the sale of a main home, or up to $500,000 for a married couple filing jointly, if the ownership and use tests are met. Generally that means owning the home and living in it as your main home for at least 24 months of the 5 years before the sale. The IRS says a transfer of your home or your share of it to a spouse or former spouse as part of a divorce settlement is generally treated as having no gain or loss, and that time your spouse or former spouse lives in the home under a divorce or separation instrument can count toward your use of it. The details matter, so talk to a tax professional before deciding.
Keeping the process calm
Selling during a divorce goes better when both sides see the same information at the same time. We can speak with both spouses, or with both attorneys, and we put our offer in writing so nobody is relying on what the other person said. The closing is handled by a title company or attorney, who can pay out the proceeds according to written instructions that both of you sign or that the court orders.
Selling the house to us
Common questions
Related guides
Foreclosure
The 120-day federal rule, your options before a sale date, selling to protect equity and how to spot rescue scams.
Read the guideTax liens and back taxes
Back property taxes, tax sales, IRS liens and certificates of discharge, and how liens are paid at closing.
Read the guideSell as-is
What selling as-is really means, what you still have to disclose, and how to compare an as-is offer.
Read the guideVacant house
The real carrying costs of an empty house, insurance gaps, break-in and freeze risk, and selling from out of town.
Read the guideRelated articles
- Selling a House During a Divorce in New Jersey
Equitable distribution, who has to sign, the early settlement panel and economic mediation, and the tax rules for the marital home.
- Capital Gains Tax When You Sell a House
How the IRS figures your gain, who qualifies for the home sale exclusion, partial exclusions, rental and inherited houses, and when to report.
Sources
Last reviewed: September 2026. General information only, not legal or tax advice. Rules vary by county and municipality and change over time; talk to a local real estate attorney or title company before you decide.
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