Part 3.
Given all of the above, here’s the plan (and pls correct me where I’m misunderstanding anything):
This is hard to comment on because it is more of a legal and personal question than a tax question.
For income taxes, as long as at least one of you lives in the current house as their main home until it is sold, you both qualify for the exclusion, even if you legally divorce earlier. (You don't have to share the house until you sell it, although you certainly can if you are agreeable to doing that.) There can be legal benefits to separating your finances (either by filing MFS or by finalizing a divorce) although you may want to discuss with an attorney. You will likely owe similar income tax after divorce when filing singly, as when married filing jointly, but this would have to be confirmed using your specific income and other facts. Filing MFS will result in higher income taxes.
For mortgage qualifications, you may want to discuss with an attorney or mortgage broker.
