My spouse and I separated almost three years ago. We would like to co-own the house. My understanding is that there needs to be some language in the separation agreement that states that I am to remain resident in the house in order for him to get credit for “use” of the house so that he passes the so-called “use” part of the “use” and “ownership” rules to take advantage of the $250K capital gains exemption when selling.
We have yet to actually create a separation agreement at this time. Do we need to get this done before he hits the three year mark of him being out of the house?