Bob Maloney, MSFS, AEP, MSFS, AEP
Your question begins with whether it's legal to sell your home and pay off your debts. It is not illegal to sell any asset you own in your own name including your home and pay off other debts. Whether it's wise to do so is another question. The second part of your question had to do with taxation. If you actually have a capital gain at the time of the sale of your home and you lived in your home for two of the last five years, you're entitled to a $250,000 capital gain exclusion assuming your single. If on the other hand you're married and if the house is in joint name you may well be entitled to a 500,000 capital gain exclusion. Assuming this is a pretty big issue in your life, my suggestion would be to contact a fee-only financial advisor in your area and/or a CPA. Good luck
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