Who Is the CPA’s Client During a Colorado Divorce: Understanding Conflicts, Confidentiality, and Tax Filing During Divorce

By Matthew C. Clawson, Colorado Family Law Attorney

When a Colorado couple begins the divorce process, financial issues quickly become central. One of the first questions spouses face is whether their long-time CPA is still representing both of them as a single joint client or whether each spouse becomes a separate client. This question becomes even more important when tax season approaches or when one spouse instructs the CPA not to share certain financial information with the other. Couples who have filed jointly for many years are often surprised to learn that the CPA’s ethical duties shift once divorce or competing filing strategies begin.

This article explains how CPAs treat clients in Colorado divorce cases, when a joint client becomes two individual clients, what confidentiality rules apply, and how to protect yourself when filing taxes during divorce.

Are Both Spouses Considered the CPA’s Client Before Divorce

In most long-term marriages, yes. When spouses file joint tax returns with the same CPA for years, the CPA treats the couple as one joint client. Both spouses share responsibility for the accuracy of the return, and both have equal access to the underlying tax information. The CPA’s duty of confidentiality applies to the engagement as a whole, which means the CPA is permitted to share all tax information from one spouse with the other because the joint return requires complete transparency.

Joint invoices, shared communication, and equal access to documents are all signs that the CPA considers the spouses a single client.

Does a Divorce Automatically Turn a Joint Client Into Two Separate Clients

Not automatically. Divorce alone does not terminate a joint CPA engagement. However, once the CPA is asked to compare filing statuses or to evaluate options that affect each spouse differently, a conflict of interest arises under professional ethics standards. Filing jointly, filing separately, and filing as head of household involve different financial consequences. The CPA cannot ethically advise both spouses when the decision benefits one spouse more than the other unless both spouses sign a written conflict-of-interest waiver.

In many cases, consent is not practical because the spouses have competing financial goals during divorce. When that happens, the CPA must either get written waivers or withdraw from representing one spouse. Most CPAs choose to represent only one spouse going forward, usually the spouse who has historically been the primary point of contact.

Can the CPA Withhold One Spouse’s Financial Information From the Other

If the CPA is still representing the spouses jointly, the answer is no. A joint CPA engagement requires transparency. The CPA cannot hide financial information, wage data, deductions, or tax projections from one spouse while continuing to represent both.

If the CPA begins representing only one spouse, confidentiality rules change immediately. The CPA can no longer disclose financial information from the represented spouse to the non-client spouse without written consent. The CPA must make the change in representation clear.

If you are still receiving joint invoices and shared correspondence, your CPA is treating you as joint clients. If your spouse is telling the CPA not to share information with you, the CPA must either decline the request or formally end the joint engagement.

If We File Separately, Does That Create Two CPA Clients

Yes. Once spouses choose to file separately or pursue different tax strategies, the CPA cannot ethically treat them as one client. Separate filing creates conflicting financial interests. The CPA must either represent one spouse or obtain conflict waivers from both. Practically, most CPAs select one spouse to continue working with, and the other spouse must find a separate preparer.

Does Colorado Law Allow a Spouse to See the Other Spouse’s Income During Divorce

Yes. Colorado’s Mandatory Financial Disclosure Rule (C.R.C.P. 16.2) requires both spouses to exchange all income information. Required disclosures include pay stubs, W-2s, 1099s, business financials, deductions, and supporting tax documents. Even if a CPA withholds information for confidentiality reasons, the spouse will still be required to disclose it directly during the divorce.

Is It Safe to File Jointly During Divorce

This depends on trust and transparency. Filing jointly can reduce taxes, but it also creates shared liability for any errors, incomplete disclosures, or unreported income. This risk increases significantly if one spouse owns a business such as a dental practice. If your spouse is refusing to share tax information, filing jointly is not advisable. Many divorcing spouses in Colorado choose to file separately to avoid unwanted liability.

Conclusion

In a Colorado divorce, especially one involving a medical practice or complex business income, understanding who the CPA represents is critical. A CPA cannot represent spouses with competing financial interests without proper waivers, and a CPA cannot selectively withhold information from one spouse during a joint engagement. If you believe a conflict has arisen or your spouse is attempting to limit what you see, consult with your attorney immediately. Your financial rights depend on transparency and proper representation.

Frequently Asked Questions About CPAs, Confidentiality, and Divorce in Colorado

Can a CPA represent both spouses during a Colorado divorce?

A CPA may represent both spouses only when there is no conflict and only after obtaining written informed consent. Once filing status analysis begins, a conflict usually exists.

If we always filed jointly, does the CPA have to continue treating us as one client?

No. A joint tax history does not require the CPA to continue joint representation once divorce begins or competing tax interests emerge.

Can my spouse block the CPA from sharing information with me?

Not if the CPA still considers you joint clients. The CPA must either decline the request or terminate the joint engagement.

When do we become separate clients?

Usually, when one spouse asks about separate filing, head-of-household eligibility, or any strategy where financial interests diverge.

Do I have a right to see my spouse’s income during the divorce?

Yes. Colorado law requires full financial disclosure regardless of CPA involvement.

Should I file jointly during divorce?

If your spouse is withholding information or operates a business, filing jointly can be risky. Many spouses choose to file separately to avoid shared liability.

Can the CPA drop one spouse and keep the other?

Yes. CPAs often continue with the spouse who manages business or financial contacts.

Do I need my own CPA during a divorce?

In many high-asset cases, yes. Especially when one spouse owns a dental practice, medical practice, or other business.

Talk With an Attorney About CPA Conflicts and Financial Issues in Divorce

For more information about high-net-worth divorce or to schedule a divorce case review throughout Colorado, contact Clawson & Clawson, LLP.

Matthew C. Clawson will answer your questions, evaluate your case, and advise you on the best course of action based on your individual needs and priorities.

We can be reached at www.clawsonattorney.com, and Matthew can be contacted directly at Matthew@clawson.law. For more information about our top-rated legal services, fill out our online form or call 719-471-7050 or 303-805-9353 to schedule a free initial consultation.