You might also look at IRC 1377:

https://www.law.cornell.edu/uscode/text/26/1377

And regs:

https://www.law.cornell.edu/cfr/text/26/1.1377-1

You have some options regarding how things get allocated on the K-1s between husband/wife.  Default is pro rata per share per day but there may be a "closing of the books" election available.