Next year implications for 401k liquidation and equity buyout

I'm going through a divorce and part of it is me liquidating my 401k to buy my wife's half of the equity on the house so I can remain in it. I know that doing a hardship distribution of my 401k is going to count as income on next years taxes, but what are the implications of me paying her that money? Is it just me who is going to be paying increased taxes on that or is she going to be being taxed as well from me giving her that money? It is just north of $100,000 that I will be giving her.

Edit: to clarify, this is not me sharing my 401k retirement as part of our separation agreement. I am agreeing to pay her 50% of the equity of the house and the only way to do that is for me to tap into my 401k.