12 Frequently Asked Questions About Certified Public Accountants (CPA’s), Confidentiality, and Divorce in Colorado

By Matthew C. Clawson, Colorado Family Law Attorney

1. Can a CPA represent both spouses during a Colorado divorce

A CPA may represent both spouses only when there is no conflict of interest and only after both spouses sign a written consent acknowledging dual representation. In most divorces, financial interests begin to diverge as soon as spouses consider filing separately, head of household eligibility, or uneven tax liabilities. At that point, a conflict exists, and the CPA cannot ethically advise both spouses.

Most CPAs will continue representing the spouse who historically handled the tax relationship and will refer the other spouse to a new preparer.

2. If we always filed jointly, does the CPA have to treat us as one client

No. A history of joint filing does not require the CPA to continue representing both spouses once a divorce begins. Joint representation may continue only if:

• Both spouses share the same tax goals
• Both spouses agree to fully exchange financial information
• Neither spouse is withholding information
• Both spouses sign a conflict waiver

If any of these conditions fail, the CPA must treat the spouses as separate clients.

3. Can my spouse prevent the CPA from sharing financial information with me

Not if you are still joint clients. When a CPA represents both spouses, all tax information is shared because both spouses are responsible for the accuracy of the return. The CPA cannot honor a request to keep one spouse’s income or deductions secret from the other.

If the CPA transitions to solely representing your spouse, then confidentiality rules apply and information can no longer be shared without written consent. At that point, your attorney will obtain the required documents through mandatory financial disclosure instead.

4. When do spouses officially become separate CPA clients

You become separate clients when:

• One spouse asks about separate filing
• One spouse seeks head of household filing
• One spouse wants to evaluate different financial strategies
• Tax outcomes benefit one spouse more than the other
• One spouse asks the CPA to withhold information
• Divorce litigation becomes adversarial

Once any of these events occur, the CPA cannot ethically represent both sides of the divorce.

5. Do I have a right to see my spouse’s income information during the divorce

Yes. Colorado law requires complete income disclosure under C.R.C.P. 16.2. Even if the CPA stops sharing information due to a conflict, your spouse must still provide:

• Tax returns
• Pay stubs
• Business financial statements
• W-2s or 1099s
• Deductions and financial documents
• Profit distributions or business K-1s

You cannot be legally excluded from income information during a Colorado divorce.

6. Should spouses file jointly during a divorce

Joint filing can save taxes, but it also creates shared liability. If one spouse owns a business or refuses to share complete financial information, filing jointly becomes risky. You could be held responsible for unreported income or questionable deductions.

If trust is low or transparency is lacking, separate filing is usually safer during divorce.

7. Can the CPA drop one spouse and keep working with the other

Yes. CPAs often choose to continue representing the spouse who historically managed the tax relationship or who provides the majority of the financial documents. This is legally permitted once joint representation ends.

The other spouse simply hires a new CPA.

8. Do I need my own CPA during divorce

If your divorce involves a business such as a dental practice, medical practice, real estate company, or consulting business, hiring your own CPA is strongly recommended. Your CPA can:

• Review financial disclosures
• Evaluate business income
• Spot irregularities or manipulation
• Assist with separate filing questions
• Support your attorney during settlement negotiations

In high-asset or business-heavy divorces, having your own CPA is important for protecting your financial future.

9. Does my spouse need to disclose business books and records even if the CPA keeps them confidential

Yes. CPA confidentiality rules do not override Colorado financial disclosure laws. Business owners must provide:

• Profit and loss statements
• Balance sheets
• Tax returns
• Payroll records
• Distributions
• Loan documents
• Business deductions
• Depreciation schedules

Even if the CPA cannot release them directly due to representation limits, the spouse must disclose them during divorce.

10. What happens if my spouse tries to hide information from the CPA or the court

Attempts to hide income, alter business records, or falsify deductions are taken seriously. Courts in Colorado may impose:

• Sanctions
• Attorney fee awards
• Negative inferences
• Income imputation
• Reopening of financial issues
• Contempt of court

Colorado judges expect transparency, especially in cases involving business ownership.

11. Is it possible for spouses to knowingly agree to keep using the same CPA

Yes, but only if both spouses sign a written conflict waiver and both fully consent to joint representation. This is rare, because divorcing spouses typically have conflicting tax goals and unequal access to financial information.

If one spouse is uncomfortable, joint representation should end.

12. When should I involve my divorce attorney regarding CPA issues

You should notify your attorney immediately if:

• Your spouse tells the CPA to withhold information
• The CPA refuses to share documents
• You suspect financial manipulation
• You are unsure whether joint or separate filing is better
• Your spouse owns a business or has irregular income
• Your attorney will protect your rights and coordinate with financial experts if needed.

Conclusion

Financial transparency is one of the most important parts of a Colorado divorce. Understanding who the CPA represents, what information must be shared, and when confidentiality applies ensures that you are protected, informed, and positioned for strong financial outcomes.

If you believe a conflict has arisen or if your spouse is attempting to limit your access to financial information, speak with a family law attorney immediately.

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) 602-5888 to schedule a free initial consultation.