Thank you so very much for the quick response! I have a further question related to this answer below - if the house is not on the market and sold in this calendar year this will most likely be what happens. We will be divorced at some point in 2022, I will be the sole owner of the house and report the entire gain and lose 250K of the tax deduction. I know there seems to be a lot of language that can be added to the divorce decree to get around these issues but can this be avoided entirely by adding his name to the deed now? Thank you again!
4. My fear is that because I am the only person on the deed, I will have to pay 100% of the capital gains on this property and only get half the revenue. Unfortunately, this is a contested divorce and my spouse is not knowledgeable or cooperative. He has zero income, it would be fantastic to give the entire gain to him and pay no capital gains - which may be his reality on his half. if you sell after the divorce is final you will be the one to report 100% of the sale (you would be the only owner at the time of sale), only get a $250K maximum exclusion and then end up having to give your ex 50% of the proceeds.
