Legal Question in Business Law in California

IRS Publications 504, and perhaps 555, may contain your answer. My guess is that you probably are operating this corporation under an "S" tax election so the consequences of its profits and losses flow through to the shareholders individually. I'd further think that you probably held the stock as community property; since the community no longer exists, you probably hold your shares as tenants in common. If so, and if your agreement is that the shares are owned equally, you'd declare half of the income(or loss) reported on a K-1 issued to the two of you, or all the income reported on a K-1 issued to you individually. (Look at the K-1 to see if it shows you are a 100% owner of 37.5% of the company or a 50% co-owner of 75% of the company. Either way, your tax consequences are the same. The important thing is that you and your ex report the same thing. If your issues are more complex than I'm guessing, a good tax preparer should be able to advise you, or re-ask on LawGuru as a tax question (rather than business law).