It might be acceptable for only one party to report the sale on their return provided the 1099-S, Proceeds From Real Estate Transactions reflects only that party as the transferor. Did you receive a 1099-S? Generally, the party responsible for closing the transaction is the party that files the 1099-S. When there are multiple transferors, as in your case, sometimes a 1099-S may reflect each transferor's allocable amount. In that circumstance, both of you could file your respective returns consistent with the information on the 1099-S.
If there is no 1099-S, you need to get one. The IRS provides the following guidance when no one party is responsible for the closing:
If no one is responsible for closing the transaction as explained in (1) above, the person responsible for filing is, in the following order: (a) the mortgage lender, (b) the transferor's broker, (c) the transferee's broker, or (d) the transferee.
Instructions for Form 1099-S at page 2
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