CLIENTS DIVORCING

[Lee B]

Just received a phone call from one spouse who arrived home from being out of town to find the other spouse in the process of moving out of their home and selling personal belongings.

The couple has been married over 30 years and have been my clients for over 20 years. I have been involved during that time doing monthly writeup, payroll recordkeeping,

business and personal tax return preparation. Given the personalities involved, I can envision dueling attorneys. I also anticipate being asked to give depositions by both attorneys.

There is no way, I would try to represent both.  In fact, I have serious misgivings about whether I should represent either one, given the probability of this turning very ugly.

I would appreciate any advice from those of you who have been involved in a divorce involving joint ownership of a business, which very well will be an ugly situation.

Thanks in advance,

[ILLMAS]

I think having a talk with both of them and telling them, you would appreciate it if they didn't involve you in any issues, that you will gladly provide copies etc... of whatever they need and that's about it.

[TAXMAN]

The last one I was in, I very politely excused myself stating I would have a conflict of interest in trying  to represent either. I suggested that each seek a CPA suggested by their respective attorneys. I would give them copies of whatever I had. However in this case both attorneys requested the same info. by way of a subpoena. Don't know what happened as both parties moved out of state after all was said and done.

[Medlin Software, Dennis]

I would end services with both. I would likely provide copies of all relevant documents (what I was required to have kept ONLY, nothing extra) to each, and prepare two more sets, one for each attorney to be sent as soon as I receive authorization from each party.  This may keep me out of subpoena/court, which is an expense I may not be able to recover recover easily.  Preparation at my timing may be better than under pressure of a court order.

If each knows the other will get the same set of required documents, it may reduce the need to involve me in any squabble.  Depending on my requirements/restrictions, maybe I can ethically use the same letter to each, with a cc statement or something at the bottom.

I would make sure I was not in possession of anything I was not required to have.  For instance, if I am required to keep 4 years of documents, I would rid anything more than 5 years old.  (The extra year is to avoid any issue with calculating the time down to a day or month.)  Documents I am not supposed to have cannot do me any harm...

The process should be exact, or close to, my process for firing a client.

Upon final dissolution, if asked, I might choose one to resume services for one.  I would not entertain accepting either until final dissolution.

[JohnH]

There's some excellent advice on this thread.  Situations involving lawyers tend to be very lucrative for the lawyer and very costly for the tax preparer. 

[Roberts]

When you are subpoenaed for your records, be sure and include a bill for your time when you deliver to the law firm. They will pay you.

I can't imagine any lawyer would allow you to represent their client. They will bring in their own completely partial accountant for that.

Don't take it personally when dealing with the attorney's.