Property and debt that are acquired between the date of the marriage and the date when you officially separated are considered to be community property in California. so if CP each would report sale of 1/2 the property.
for purposes of the home sale exclusion only one needs to be on title (own it for two years) but each must use it as their primary residence for any 2 years before sale. However, under the tax code allows the spouse who does not actually use the home as a residence to meet the use test during any period that 1) the nonoccupant spouse owns the home and 2) the occupant spouse or former spouse is allowed to use the nome uder a divorce or separation agreement and uses the the home as their main home
I also question filing as single since legal separation is not the same as divorce. If you do not live apart for the last 6 months of the tax year the filing status choices are joint or married filing separately. The same would be true unless living apart for the last six months of the tax year and the taxpayer paid more than 1/2 the cost of keeping up a home for themself and their child who lived with the taxpayer for more than 6 months.
