Normally, a divorcing couple divides the family home in one of three ways: one, sell it on the market; two, a buyout of one spouse by the other; three, joint ownership with sale at a later date.

Couples who go this route can exclude up to $500,000 from capital gains tax if they file a joint return for the year in which the house is sold. A spouse who files a separate return may exclude $250,000. In addition, a person must have owned the house for at least two out of five years and lived in it for two of five years.

Usually, this method requires that the house be refinanced, and this means that the remaining spouse must have adequate credit and finances to take over a mortgage on his or her own. Usually, the reason for refinancing is the payoff of the departing spouse. Refinancing also removes the name of the departing spouse from the mortgage. "The decision whether to sell or keep the house should be made as part of the overallsettlement. Consider the assets and debts you expect to obtain in the divorce settlement, your anticipated income and anticipated support you may receive (alimony or child support). Also consider the tax effects, such as the mortgage interest deduction, which may decrease your tax burden and therefore increase the amount of your income available to you. If you cannot comfortably afford housing expenses, it might be better, overall, to consider selling the house and replacing it with something more affordable," advises one divorce specialist.

Selling the house appeals to some people because it symbolically demonstrates the end of the marriage, but many realtors advise against selling now, "in a down market. Don’t just sell to get out of a bad situation. Don’t sell at the bottom," advise some. (Of course, in many places, no one knows where the bottom is.)

Since the collapse of the market, the polarity between the sellers and buyers has shifted from the former to the latter, so waiting may become very problematic for a couple eager to move forward.

Each of these routes has advantages and disadvantages that must be carefully considered. Because of economic conditions, some spouses, who might want to use options one or two, now are forced to take option three. And some, according to reports, are even sharing the house during and after the divorce.