for uncontested divorce, does house need to be sold?

It is not required that the house be sold. Normally one spouse or the other signs a quit claim deed and the decree indicates that the spouse who is getting the home will indemnify the other party (hold harmless) for collection of mortgage and fees. The problem is that even with the quit claim, to refinance, the spouse receiving the home must qualify. If the house is not refinanced, then the mortgage lender can still go after the ex spouse to collect the mortgage payments. If one spouse gets the home, then how will any equity in the home be paid to the spouse who is signing off on the house? You may want to at least consult with an attorney before finalizing your documents for further guidance.

The prior answer is correct, but I want to add that in this economy the court may be more careful about putting any property in jeopardy. If selling or re-financing isn't realistic, the court can order a lien in favor of whoever was supposed to be cashed out and give the parties time to let the market improve. It's not an ideal outcome, but it's better than the house being a total financial loss.

the house does not have to be sold, but the party that is no longer going to be in the home has to sign a quit claim deed. If the spouse keeping the house cannot refinance in their own name, the mortgage company will not generally release the ex-spouse from the loan. So spouse who gets the house is supposed to make the payments. If they do not, the bank will go after both persons on the loan.

If one party can afford to refinance, then the other party can sign a quit claim deed and transfer the property over to the other party.