It depends. To deduct interest on a mortgage, the taxpayer must be legally liable for the debt. No deduction is allowed for payments made for another's obligation if the taxpayer is not liable. Therefore, you both must be on the mortgage in order for the interest to be split to be deductible for each. In that case, you would simply claim half (or any agreed upon percentage) on each return as long as the total deducted does not exceed 100% of the interest expense.
You also mention you are up against the limit on the deduction. Splitting the interest between two taxpayers does not preclude you from this limit. This is a total on the property, not per taxpayer. For mortgage debt incurred on or before December 15, 2017, interest is deductible on the first $1 million ($500,000 for married filing separately) of debt. After December 15, 2017, interest related to the first $750,000 of mortgage debt id deductible.
Deducting Mortgage Interest
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