You are correct. You are to "Treat the home as your residence for the time your spouse or former spouse lived in in it due to a divorce agreement." You answer the home sale questions as if you lived in the home and since that residence and ownership meets the 24 months in the last five years prior to the sale test, you qualify for the exclusion of up to $250K of gain on the sale. This also assumes no other home sale exclusion in the past two years.
Keep with your tax records proof that you meet this exception should it ever come up in the future. There are no special forms or elections to be made on the tax return.
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