so as to simplify the answer. is the $160 proceeds or gain? proceeds is the selling price. gain is difference between selling price and tax basis. who owns the property now? do you live in a community property state?
There are various ways to handle the home sale which should be discussed with your divorce lawyer. You see what you want and what is decided in divorce court can be completely different.
to give you a partial answer, divorce is recognized as an unforeseen circumstance. thus, you would be entitled to a prorated exclusion which for a sale in 2024 would be the number of months you occupied it divided by 24 (you can use actual days in which case you divide by 730) times the $250,000 exclusion. This also assumes you have not used the HSE within 2 years of sale of this one.
