Co-owning house

North Carolina Divorce Law Divorce and Separation Answers
1

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?

2

There may be a way to structure this so it is tax free, but that is beyond the scope of the forum. You should consult with a lawyer, and a CPA.

3

I understand that the “how” part of this is beyond the scope of the forum. I simply wanted to know the “when”.

Which is to say, must the separation agreement be done before he has been out of the house for three years?

Thanks for your help!