If you claim Itemized deductions then your spouse will loose her deductions all together and will likely end up owing the IRS money as her taxable income would increase by $12,550.
There is no fine for either of you if you use different filing methods, the IRS just takes away the standard deduction for the one using it.
You said you have significant business expenses. These are not itemized expenses, these expenses would go on Schedule C if you are a business owner or an independent contractor. If you are an employee, your job expenses are not deductible as itemized expenses.
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