Yes, split the income and report your respective one-half. Handling the 1099-INT in this manner is consistent with IRS Publication 555:
Each spouse (or each registered domestic partner) is taxed on half the community income for the part of the year before the community ends. However, see Spouses living apart all year, earlier. Any income received after the community ends is separate income. This separate income is taxable only to the spouse (or the registered domestic partner) to whom it belongs.
Here is a link to IRS Publication 555. The above quoted material was obtained from page 10, Divorce or separation.
IRS Publication 555: Community Property
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