3. Keep the House until the Children Move Out, Then Sell It
There are cases where one parent chooses to remain in the home with the children while the
ex-partner moved out of the house after the divorce. The moment the children move out, the
parents sell the home and divide the profit.
If by any chance, one of the spouses moved out and the person has not lived in the house for
two years in the past five years, there is a possibility of owing taxes on the profit gotten from
selling the home.
As long as your divorce agreement highlights your plans to sell your home, the IRS will regard
it as meeting the two-out-of-five-year residence rule.
The Perfect Thing To Do
It is best to get an experienced property lawyer who would help you carry out a comprehensive
research and get the right allocation you desire.