Income reported as wife's, but actually husband's. They are now in divorce. Tax woes.

A husband does contract work for a school system on a monthly salary. 2 years ago, he got fired from his main job, but was able to receive unemployment benefits. Back then, he told her that she needed to go to the school and sign a 1099 form so they can report the money in her name, to save him from having to report it as income while he was receiving unemployment benefits. She agreed, because honestly he is controlling and abusive if she did not always do what he wanted. Well, the school continued to report this income as her's for the 2 past years, even though she did none of the work. For the past 2 years they filed "married filing separately" on their taxes, but they were done by a CPA, and it was taken care of by her husband. Now, they are in the process of divorce. She said she had completely forgotten about that 1099 form from 2 years ago and that extra income he had coming in from a contract business. She filed her taxes (Married filing separately) for 2008, and received a refund. She said after she had filed her taxes, she then received a W2 from this school for work done by her husband, and reported in her name. She called the school and said she did not do any of this work, and she wanted them to change it to his income. They said they couldn't do that since she is the one actually considered employed. If she has to amend her taxes for this work she did not do, she is going to have to repay the IRS almost $2,000. Is there any way to contest that income? She said her husband took the checks that were in her name and deposited the money into their joint bank account, and it was used jointly, although she definitely did not do this work for income. What are her liabilities legally for this income and to pay these taxes?