If he took the $7,000 before he paid you, he should not have included it on your 1099-MISC. But if he did, and your 1099-MISC shows the GROSS commission pre-split, then in the eyes of the IRS you received the gross commission and YOU paid HIM the $7000 split (which you can then deduct as a commission paid). Be sure you write the check to his corporation (as shown on his W-9), not to him personally.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
