My wife and I were divorced in August of 2008. Prior to the final decree (May 2009) and as part of the property settlement I sold 1000 shares of stock. My wife and I divided the money from the sale 50-50 as stipulated in the settlement agreement.
In January of 2009, I received a 1099-B reporting to the IRS, my sale of the stock. The 1099-B is in my name and has my SS number. For tax purposes, how do I indicate to the IRS that I only received half of the money from the sale and therefore should only be taxed on my portion?
I’ve been told that all the IRS cares about is the fact that the sale was reported uder my name and SS number. My ex is not disputing anything and is willing to pay taxes on her half, but we can’t figure out if the IRS will allow us to split the 1099-B since it only lists me as the stock owner.
Am I overcomplicating this or have I messed up by not planning properly for this prior to the divorce?