Thanks, I've relied on your advice in the past. According to PLR-130300-04

E= Employee

X= ex spouse

1. The Court's recognizing X's CP interest in the ISOs and requiring E to exercise X's ISOs only in accordance with X's instructions and requiring E to designate X as the beneficiary of X's share of the options will not violate the requirements of sections 422(b)(5) of the Code relating to nontransferability and lifetime exercise by the employee.

2. AMT income recognized on E's exercise of X's ISOs will be includible in Xs AMT income for falderal tax purposes.

3. Income recognized on E's exercise of X's NSOs that remain in E's name or under E's control will be included in X's income for federal income tax purposes.

4. X will be entitled to any AMT credits as a result of E's exercise of X's ISOs. 

I simply can't think of a way to transfer this W2 income to X other than a negative "other income" adjustment, nominee distribution for X's SS#.