In order for the maximum exclusion of $500k to be claimed, either spouse must meet the ownership test but both spouse must meet the use test and neither spouse must have claimed §121 within the last 2 years.  Otherwise, the exclusions must be separately determined for each spouse and each spouse is treated as owning the property for period either spouse owned the property.  In the event the taxpayers sold the home due to a change in the place of employment, health, or unforeseen circumstances, the spouse who did not meet the ownership and use tests may, however, be eligible for a reduced exclusion.