try / else with return in try block

http://docs.python.org/reference/compound_stmts.html#the-try-statement

The optional else clause is executed if and when control flows off the end of the try clause.

Currently, control “flows off the end” except in the case of an exception or the execution of a return, continue, or break statement.

The reason for this behaviour is because of the return inside try.

When an exception occurs, both finally and except blocks execute before return. Otherwise only finally executes and else doesn't because the function has already returned.

This works as expected:

def divide(x, y):
    print 'entering divide'
    result = 0
    try:
        result = x/y
    except:
        print 'error'
    else:
        print 'no error'
    finally:
        print 'exit'

    return result

print divide(1, 1)
print divide(1, 0)