You both must have lived in and owned the home for at least two years in the five year period on the date of sale to get the $500,000 exclusion when married filing jointly. If you sell the home before the two year period and only one of you lived in and owed the home for two years, then your exclusion will be $250,000.
See IRS Publication 523 Selling Your Home - https://www.irs.gov/pub/irs-pdf/p523.pdf
