Nominee Distribution Twist - can it work?

[tilt]

Hi folks,

I have a CA client who just divorced (community property state) and I know we can have a client do a nominee distribution for mortgage interest and other things.

Here's the twist. For 2008 he was still married & filed joint and had approx. $65,000 of LT cap. loss. He claims the stocks were all in his name only. My understanding is that he has to split the loss C/F with the ex-wife. Can she do a nominee distribution "giving back" her portion of the C/F?

Does this make any sense? If she can't do it, why not? As always, I appreciate your responses.

[jainen]

>>My understanding is that he has to split the loss C/F with the ex-wife<<

Is your understanding based on an actual determination made by the family court? Because that is the only thing that counts, and it is readily available.