Husband & wife owned a 2 unit property in which one unit was rented for many years.
In 2012 they got divorced and the property was awarded to the wife. Does the ex-husband report any part of the recapture depreciation since they have been filing a joint return every year or is this now the responsibilty of the wife to recapture 100% if she later sell the property?

As long as their divorce indicates that the pty is to be sold and the proceeds split between them equally. Then, they determine the total amount of gain, distinguishing between the depreciation recapture and capital gain portions. Then they divide it between the two of you equally. Each of them reports your portion on your own return.HOWEVER, in this situation, she later sells the pty, then she needs to recapture the unrecap depre ONLY on the disposition of the pty as ordinary gain taxed at 25%.