36% of U.S. divorces now involve adults 50 and older — and the timing of the home sale alone can be a $250,000-exclusion-versus-$500,000-exclusion decision. This guide walks through the three outcomes for the house, the tax timing, and a sale process both spouses can trust.
Iowa follows equitable distribution: courts divide marital property based on what is fair — not automatically 50/50. Factors include the length of the marriage, each spouse's financial contributions, age and health, pension and retirement benefits, and each spouse's economic circumstances after the divorce.
National research on divorce after 50 is sobering: roughly 36% of all U.S. divorces now involve adults 50 and older; women experience an average 45% decline in standard of living after a gray divorce, and both spouses average about a 50% drop in total wealth. The family home is usually the largest asset in the settlement — which is exactly why the sale deserves a process, not a scramble.
Federal tax law allows homeowners to exclude capital gains on a primary residence, subject to a 2-year ownership and use test within the 5 years before the sale:
For a long-owned Des Moines home with substantial appreciation, the difference between selling before and after the decree can be tens of thousands of dollars in tax exposure. Coordinate with a CPA and your family law attorney before setting a listing date — the tax math should drive the sequence, not the other way around.
In a gray divorce sale, I represent the property outcome — not either party. The protocol is strict and in writing from day one:
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Until a decree is final, both spouses typically retain rights in the marital home — a sale requires both to agree, or a court to order it. Most couples find agreement less expensive than litigation, and a documented valuation makes agreement much easier.
Often by tens of thousands of dollars — the $500,000 joint exclusion versus $250,000 per person is the headline, and the ownership-and-use tests decide who qualifies. This is a CPA conversation, and it should happen before a listing date is chosen.
Yes — with a written protocol: everything material to both parties simultaneously, every offer presented to both at once, both attorneys in the loop, and never a side conversation. The protocol is the first document we go over.
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Completely. Nothing about your request is discussed with anyone — including a spouse.
Prefer to talk first? (563) 513-8771 · sarah@smartmovedsm.com
Sarah Ingles · REALTOR® SRES® CPCU® · Iowa License #S73007000
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