How to Report the Sale of a Home After Divorce
in Indiana
Understand What to Report, Why It Matters, and How to Avoid Mistakes
Simple Steps to Help You Report Your Share of the Sale the Right Way
Sold Your Home After a Divorce in Indiana? Not Sure What to Do Next?
You’re not alone—and you’re in the right place.
If you recently got divorced and sold a house you owned with your ex, you might be wondering:
“Do I need to report that? How? What if we split the money? What if I did it wrong?”
This page will explain everything in plain English.
We’ll walk you through what you need to know—step by step—so you can report the sale properly, avoid mistakes, and feel confident that it’s all sorted.
You don’t have to be a tax expert or a lawyer to understand this.
Let’s break it down together.
You’re Not the Only One Feeling Confused About This
Selling a home after a divorce can be messy - and not just emotionally.
There’s paperwork, taxes, and legal stuff that most people have never dealt with before.
You might be asking yourself:
“Do I report the entire sale or just my half?”
“What if my ex already handled it?”
“What if we didn’t split things evenly?”
“Do I owe tax on this?”
The truth is, this part of the process often gets overlooked. Lawyers may not explain it. The IRS instructions feel like a foreign language. And most people don’t know who to ask.
But here’s the good news:
You don’t need to have all the answers right now.
What You Actually Need to Report (and Why It Matters)
When you sell a home, even after a divorce, the government usually wants to know about it.
That’s because you might owe tax on any money you made from the sale.
But don’t panic. In many cases, you don’t owe anything, especially if the home was your main place to live and you didn’t make a huge profit.
Still, you might need to report the sale on your taxes, even if you don’t owe.
Here’s what that usually means:
You may get a tax form called a 1099-S.
This form tells the IRS how much the home sold for. It might go to you, your ex, or both of you.
You may need to fill out a section on your tax return.
This is where you show how much you sold the home for and whether you made a profit. You’ll usually do this with something called Schedule D and Form 8949.
If you made money from the sale, you might qualify for a tax break.
You can usually avoid tax on up to $250,000 of profit (or $500,000 if you filed jointly before the divorce), as long as you lived in the home for two out of the last five years.
Don’t worry if this sounds complicated, we’ll explain more in the next section.
And if you didn’t get any tax forms or don’t know where to start, that’s normal too. We’ll help you figure it out.
Real Situations After Divorce – What Happens and What to Do
Every divorce is different—and so is every home sale.
Here are some real-world examples of what might’ve happened, and what that means for reporting the sale:
If the house was sold after the divorce and you both got half, you’ll each need to report your part of the sale on your own tax return.
Look out for a 1099-S form showing the total sale amount—it may be in just one of your names. You still both need to report it.
If your ex paid you for your share and kept the home, this usually isn’t treated the same as a full sale.
Often, no tax reporting is needed at that point—but it depends on how the divorce paperwork was written.
Still, it’s worth checking with a tax person to be safe.
Even if you moved out and your ex handled the sale, you may still be responsible for reporting your share - especially if your name was still on the deed when it sold.
If your name is on the 1099-S, the IRS expects you to report it.
If the house was sold without clear agreement in the divorce, things can get messy.
You’ll need to figure out:
Who received what money from the sale
Whether that money should be split evenly or not
How to report your share properly
It’s okay if you’re unsure.
Keep reading, and we’ll walk you through the most common questions we get.
“What If…?” Questions You’re Probably Asking
Let’s go through a few things you might be worried about right now.
These are very common questions, and you’re not the only one asking them.
Even if your ex reported it, you may still need to report your share—especially if your name was on the house or the tax form (1099-S).
The IRS looks at what’s tied to your name, not just what your ex did.
Sometimes the title company or closing agent sends it to just one person.
If your name was on the house when it sold, you still may need to report it, even if you didn’t get a form. You can often find the sale details in your closing paperwork.
That’s okay. You usually just report the part of the money you received.
For example, if your ex got 70% and you got 30%, you only report your 30%, but you still need to do it properly.
You probably don’t owe any tax if the house was your main home and you didn’t make a big profit.
But you still might need to show the sale on your tax return to be safe.
Better to report it than to ignore it and have the IRS ask questions later.
If the house hasn’t sold yet, or if the sale is still being sorted out, it’s best to speak with someone now.
The longer things stay unclear, the more complicated it can get later - with both taxes and legal stuff.
If these questions sound familiar, you’re not alone.
In the next section, we’ll show you how to make all of this feel a bit easier.
How to Make This Easier on Yourself
You don’t have to figure this all out alone.
Dealing with taxes, divorce, and a home sale at the same time can feel like too much—and that’s okay.
Here are some simple ways to take the next step:
1. Talk to a tax professional
A tax expert (like a CPA or tax preparer) can look at your situation and tell you exactly what to do.
They’ll help you:
Know what forms you need (if any)
Report the right amount based on what you received
Avoid paying more than you should
It’s usually not expensive, and it can save you a lot of stress.
2. Look at your closing paperwork
If you’re not sure what you got from the sale, the closing statement (also called a “settlement statement” or HUD-1) shows:
How much the house sold for
What was paid to each person
Any costs or fees that came out of the sale
This is helpful when filling out tax forms or talking to a pro.
3. Ask for help if the sale hasn’t happened yet
If you’re still trying to figure out what to do with the house, or things feel stuck with your ex, we can help.
At YDL Homes, we work with people going through divorce or tough situations all the time.
We buy houses in Indiana as-is, with no agents or fees, and we make it simple - even if things aren’t clear on paper yet.
When You’re Ready, We’re Still Here
You might be done with the sale - but that doesn’t mean you’re done dealing with all the pieces.
At YDL Homes, we’re more than just a home-buying company. We’re local, family-run, and we’ve helped hundreds of Indiana homeowners through tough transitions including divorce, downsizing, inheritance, and everything in between.
If you:
Still have questions about selling, taxes, or what comes next
Know someone else going through a similar situation
Just want to talk to someone who’s been through it with others before
We believe in treating people like people - not just transactions.
And even if we’re not buying your house, we’re happy to point you in the right direction or answer your questions.
Need help or know someone who does?
Get in touch with us - no pressure, no sales talk, just real help.
