Selling a House During a Divorce in Washington (2026)
For Sellers

Selling a House During a Divorce in Washington (2026)

By
Peter Kim
PUBLISHED
November 4, 2026

Short answer: You can sell a house during a divorce in Washington, but if it’s community property, both spouses (or registered domestic partners) have to sign and acknowledge the deed. Before listing, check whether a court order restricts transferring property, agree in writing on price decisions and how the proceeds will be held or split, and talk to a CPA about the home sale exclusion. A buyout between spouses under the decree isn’t subject to real estate excise tax, but a sale to an outside buyer is.

This is general information, not legal or tax advice. Your divorce attorney and a CPA should guide the decisions in your case; we can help with the sale itself.

Who has to sign

In Washington, property acquired during the marriage or registered domestic partnership is community property unless it’s separate property under RCW 26.16.010 or 26.16.020 (owned before the marriage, or received by gift, bequest, devise, descent or inheritance). Either spouse can generally manage community property, with exceptions. The one that matters here is RCW 26.16.030(3): neither spouse may sell, convey or encumber community real property unless the other joins in the deed or other instrument, and both must acknowledge it.

RCW 64.28.020(2) presumes that interests held in common in the names of both spouses or both domestic partners are their community property. A spouse who owns a house as separate property can sell it without the other joining (RCW 26.16.010). In a divorce, though, the court decides how all property is divided, community or separate, under RCW 26.09.080, so don’t assume a house belongs in one column or the other. That’s an attorney question.

In practice, plan for both of you to sign the listing agreement, the purchase agreement and the closing documents, and decide early how you’ll handle signatures if you’re not communicating directly. Ask the escrow officer what they’ll need from each of you.

Check for court orders and agreements first

Three parts of chapter 26.09 RCW shape the timing:

  • Temporary orders. Under RCW 26.09.060(2)(a), either party can ask the court for a temporary restraining order or preliminary injunction barring the other from transferring, removing, encumbering, concealing or disposing of any property except in the usual course of business or for the necessities of life, with notice required for proposed extraordinary expenditures. Temporary orders generally end when the final decree is entered or the petition is dismissed (RCW 26.09.060(10), which lists an exception). If one is in place, talk to your attorney before you list.
  • Separation contracts. RCW 26.09.070 lets spouses sign a written separation contract covering the disposition of property. If either later files for dissolution or legal separation, the contract binds the court unless the court finds it was unfair when signed. A written agreement on whether to sell, at what price, and how to split the proceeds avoids a lot of friction.
  • The decree. The final decree provides for the disposition of property and liabilities (RCW 26.09.050). The court divides property in a way that’s "just and equitable" after considering factors such as the nature and extent of the community and separate property and the length of the marriage (RCW 26.09.080).

Your options

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OptionHow it usually worksPoints to check
Sell now, split the proceedsBoth spouses sign; escrow pays off the loan and closing costs, then disburses or holds the net per written instructionsAny restraining order; a written agreement on price, offers and the split; excise tax applies to a third-party sale
One spouse buys out the otherThe departing spouse deeds their interest to the other, often as part of the settlementExcise tax doesn’t apply to a transfer between spouses under the settlement incident to the decree; the existing loan and who stays on it is a question for the lender
Keep it for now, sell laterBoth stay on title; the decree or agreement sets who stays in the house and when it sellsBoth still have to sign when it sells; IRS rules on using the home after separation; later transfers between ex-spouses outside the settlement may be taxable

Based on: RCW 26.16.030, RCW 26.09.050, 26.09.060 and 26.09.070, and RCW 18.44.011, Washington State Legislature; WAC 458-61A-203, Washington State Legislature; IRS Publication 523.

If you sell, the same work applies as in any sale. Our guide to the true cost of selling a house in Washington explains commissions, excise tax and other closing costs, and our article on a mortgage payoff covers how the loan is paid at closing. If neither of you wants to spend on repairs, read about selling a house as-is. Prorated property taxes when you sell also show up on the settlement statement. If you’ll be preparing the seller disclosure statement (Form 17), agree on who fills it out and have both of you review it before it goes to buyers. RCW 64.06.020 currently has two versions on the Legislature’s site, one marked effective until January 1, 2027 and one effective January 1, 2027, so check which form is being used.

Taxes: excise tax and the home sale exclusion

Two different taxes come up, and they treat divorce differently.

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SituationWashington real estate excise taxFederal income tax (IRS Pub. 523)
Transfer between spouses that establishes or separates community propertyNot subject to the tax (WAC 458-61A-203(1))Generally no gain or loss on a transfer to a spouse or ex-spouse as part of a divorce settlement, unless that spouse is a nonresident alien
Transfer between spouses to carry out a settlement incident to the decreeNot subject to the tax (WAC 458-61A-203(2))Same as above; the receiving spouse generally takes over the basis
Sale to an outside buyer, even if the decree orders itSubject to the tax (WAC 458-61A-203(3))Gain may be excluded up to $250,000, or $500,000 married filing jointly, if you meet the ownership and residence tests
Transfer between ex-spouses outside the settlementSubject to the tax unless another exemption applies (WAC 458-61A-203(4))Ask a CPA

Based on: WAC 458-61A-203, Washington State Legislature; IRS Publication 523, Selling Your Home.

Publication 523 has several rules that matter in a divorce:

  • The 2-of-5-year tests. You generally need to have owned and lived in the home for at least 24 months of the 5 years before the sale. For a married couple filing jointly to get the full $500,000 exclusion, each spouse must meet the residence requirement on their own.
  • After separation. If you’re separated or divorced before the sale, you can treat the home as your residence if you’re a sole or joint owner and your spouse or former spouse is allowed to live there under a divorce or separation instrument and uses it as their main home. The IRS defines that instrument as a decree or a written instrument incident to it, a written separation agreement, or a support decree.
  • Home received from a spouse. If your spouse or ex-spouse transferred the home to you, you can count their time owning it as your ownership time, but you have to meet the residence requirement yourself.
  • Partial exclusion. Divorce or legal separation is on the IRS list of unforeseeable events that can qualify you for a reduced exclusion if you don’t meet the full tests.

Publication 523 points to Publication 504 for divorced or separated people and Publication 555 for community property states like Washington. Our article on capital gains on real estate has more background, and your CPA can run the numbers.

FAQ

Do both spouses have to sign to sell the house?

If the house is community property, yes. RCW 26.16.030(3) says neither spouse or domestic partner may sell, convey or encumber community real property unless the other joins in the deed or other instrument, and both must acknowledge it. Separate property can be sold by the owning spouse alone under RCW 26.16.010, but whether a house is separate or community can itself be disputed, so ask your attorney.

Can I sell the house while the divorce is pending?

Often, if both of you agree and nothing in the case prevents it. Check first for a temporary restraining order or preliminary injunction under RCW 26.09.060, which can bar either party from transferring or encumbering property outside the usual course of business. Your attorney can tell you whether an order applies and whether you need the court’s approval.

Is real estate excise tax due when one spouse buys out the other?

Not when the transfer is between spouses or domestic partners in fulfillment of a settlement agreement incident to the decree, under WAC 458-61A-203. A sale to a third party is subject to the tax even if the decree orders the sale. Transfers between ex-spouses that aren’t part of the settlement are taxable unless another exemption applies.

Will we owe capital gains tax on the sale?

Maybe not. IRS Publication 523 lets you exclude up to $250,000 of gain, or $500,000 if married filing jointly, if you meet the ownership and residence tests. If you’ve separated and your spouse is allowed to live in the home under a divorce or separation instrument, you may be able to count their use as yours. Ask a CPA about your numbers.

What happens to the sale money if we haven’t agreed on the split?

Escrow follows written instructions. Under RCW 18.44.011, escrow holds money until set conditions are met and then delivers it according to the instructions it’s given. Your attorneys can work out instructions, such as holding the net proceeds until you agree or the court rules.

Talk it through with a local agent

Peter Kim and Odigo Real Estate Club can price the house, handle communication with both owners, and keep the sale on track while your attorneys handle the divorce, with 25+ years combined experience, 593+ closings, and 122 five-star Zillow reviews. See our home selling services or ask for a property valuation.

Odigo Real Estate Club · REAL Brokerage, WA #112064 · 16108 Ash Way, Suite 201, Lynnwood, WA 98087 · (425) 409-3823 · Mon–Sat 9 AM–6 PM, closed Sunday

Sources

  • Washington State Legislature, RCW 26.16.010 (separate property of a spouse), https://app.leg.wa.gov/RCW/default.aspx?cite=26.16.010 , accessed Nov 4, 2026.
  • Washington State Legislature, RCW 26.16.020 (separate property of a domestic partner), https://app.leg.wa.gov/RCW/default.aspx?cite=26.16.020 , accessed Nov 4, 2026.
  • Washington State Legislature, RCW 26.16.030 (community property; both spouses join in deeds), https://app.leg.wa.gov/RCW/default.aspx?cite=26.16.030 , accessed Nov 4, 2026.
  • Washington State Legislature, RCW 64.28.020 (community property presumption when both spouses are on title), https://app.leg.wa.gov/RCW/default.aspx?cite=64.28.020 , accessed Nov 4, 2026.
  • Washington State Legislature, RCW 26.09.050 (decree provides for disposition of property), https://app.leg.wa.gov/RCW/default.aspx?cite=26.09.050 , accessed Nov 4, 2026.
  • Washington State Legislature, RCW 26.09.060 (temporary restraining orders and preliminary injunctions), https://app.leg.wa.gov/RCW/default.aspx?cite=26.09.060 , accessed Nov 4, 2026.
  • Washington State Legislature, RCW 26.09.070 (separation contracts), https://app.leg.wa.gov/RCW/default.aspx?cite=26.09.070 , accessed Nov 4, 2026.
  • Washington State Legislature, RCW 26.09.080 (disposition of property and liabilities), https://app.leg.wa.gov/RCW/default.aspx?cite=26.09.080 , accessed Nov 4, 2026.
  • Washington State Legislature, RCW 18.44.011 (escrow definitions), https://app.leg.wa.gov/RCW/default.aspx?cite=18.44.011 , accessed Nov 4, 2026.
  • Washington State Legislature, WAC 458-61A-203 (real estate excise tax: community property, dissolution and legal separation), https://app.leg.wa.gov/wac/default.aspx?cite=458-61A-203 , accessed Nov 4, 2026.
  • Internal Revenue Service, Publication 523, Selling Your Home (exclusion tests; separated or divorced taxpayers; home received in divorce; unforeseeable events), https://www.irs.gov/publications/p523 , accessed Nov 4, 2026.
  • Washington State Legislature, RCW 64.06.020 (seller disclosure statement form; version effective until Jan 1, 2027 and version effective Jan 1, 2027), https://app.leg.wa.gov/RCW/default.aspx?cite=64.06.020 , accessed Nov 4, 2026.

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About the Author

Peter Kim

Peter Kim is the owner of Odigo Real Estate Club, a leading real estate agency in the Greater Seattle area that specializes in residential, commercial, and luxury properties. With over 25 years of combined experience and a team of highly skilled agents, Peter brings a wealth of knowledge and expertise to the real estate space.

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