I went through a divorce in 2018. We had two homes. The primary home went to my ex. The secondary home went to me. I sold it and used the capital gain from the sale of the condo to purchase a townhome

[Anita01 · Accepted solution]

If you sold the house after the divorce was final, you would owe capital gains tax on the sale, regardless of the use of the proceeds.  The cost basis is not adjusted upward for the transfer.  As a second home, there is no exclusion of gain as there is on a primary residence.  If you used the home as a primary residence yourself, after the divorce, then you might get a partial exclusion for the number of months you used it as a primary.