1099-A or 1099-C and Divorce

[jimfrombx]

Have some relatives who have been in foreclosure for a couple of years and it may be coming
to an end due to possible short sale.
They are now divorced. When the 1099-A or 1099-C comes do they "split" the amount between them?
And if they get the forms in a later year what date do they use to determine insolvency, the date of
sale or the year they recieve the forms?

[appelman]

Debt relief in year of 1099-C

The 1099-C should indicate a date of a "definable event," usually the resale of the property, that establishes the debt relief. I would think they would split it, unless there are provisions of the divorce agreement that address the question. Don't forget there will also be a capital transaction involved.