How to you handle a 1099B which is in both party's name that were divorced at the end of 2025?

Forum|Forum|3 months ago
April 1, 2026
2 replies
20 views

I have a 1099B that is in a couple's name with both parties on the account. They were legally divorced at the end of 2025. The investments were not addressed during their divorce settlement. The broker indicates they both are equally responsible for 1/2 of the total investments. Can I divide the dividends, interest, and the Capital gains with 1/2 on the ex-husband's tax return and 1/2 on the ex-wife's tax return?

ProSeries Professional

J

jeffmcpa2010

Level 10

It sounds like you may be planning to have both of them as clients?

Skylane

Intuit Community Champion

It gets handled by nominee. The TP who’s SSN appears reports full proceeds full proceeds and adjusts basis for 50% net of gain/loss. Identify nominee by SSN and name. The other taxpayer reports their 50% proceeds and basis.

If at first you don’t succeed…..find a workaround

BobKamman

Level 15

@Skylane That's probably an acceptable shortcut, but it should be noted that IRS instructs the named taxpayer to file a new Form 1099-B and Form 1096 with the IRS, listing the named payee as the payer and the actual owner as the recipient.

BTW, the word is "whose."

S

strongsilence

Level 10

Can income be split 50/50? Yes — if substantively correct.

Given:

Joint account
Broker states equal ownership
No divorce allocation

A 50/50 allocation is generally reasonable, absent evidence to the contrary (e.g., separate property contributions, tracing, or state law override).

Can income be split 50/50? Yes — if substantively correct.

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