Who decides to sell
In California, a house bought during the marriage is generally community property, and both spouses usually have to sign to sell it. If you agree, you can sell whenever you like. If you don't, the court can order a sale as part of dividing the property. The California courts' divorce self-help pages walk through the process.
What gets paid at closing
Escrow pays off the mortgage and any home equity line first, then any liens, then the closing costs. What's left can be held in escrow or split according to your agreement or a court order. Neither of you has to hand the other a check, which takes a lot of tension out of the last step.
Taxes on the sale
Each spouse who owned the house and lived in it for two of the last five years can usually exclude up to $250,000 of gain, or $500,000 on a joint return. IRS Publication 523 explains the rules, and Publication 504 covers how divorce changes them. If one of you moved out a while ago, ask a tax preparer how the timing works for you.
Why a cash sale helps here
Listing a house during a divorce means agreeing on an agent, a price, repairs, staging and every offer that comes in. Each step is a new chance to fight. A written cash offer is one number, the closing date is whatever you both sign, and nobody has to keep the house show-ready while living apart.