Page 26 - Family Law Services

It is the responsibility of the testifying professional to be familiar with all aspects of the case.

Determining Conflicts of Interest

Divorce engagements can pose potential conflicts of interest or, at a minimum, the perception of or actu-
al lack of objectivity. The CPA should determine whether there are any perceived or potential conflicts
before accepting an engagement. This is particularly important if the CPA is retained to represent an ex-
isting client. The following are situations in which this circumstance may come about:

• The CPA has previously performed services for both the husband and wife, such as tax prepara-
tion, financial planning, and estate planning, and, as such, has confidential information, the dis-
closure of which can be detrimental to an opposing party.

• The CPA performs services for a business owned by one or both of the parties.

If the CPA is performing, or has previously performed, other services for one of the parties to the litiga-
tion and possesses confidential information, this information could be subject to discovery.

Independence issues may also arise if an expert witness repeatedly testifies for one attorney. Opposing
council may attempt to imply a lack of objectivity based on the continuing financial relationship be-
tween the CPA and the attorney.

A number of conflicts of interest can be overcome as long as the CPA informs the client(s) and opposing
party of the potential conflict, and the parties express no objections.

The Engagement Letter: Documenting the CPA's Role

Although not required, CPAs should strongly consider using an engagement letter when accepting fami-
ly law engagements. An engagement letter will not only help to establish a clear understanding of the
roles and responsibilities of the CPA but will also manage the expectations of all parties. Such letters
should include, among other things

• the scope of the engagement;

• the nature and limitations of the services to be performed;

• the parties to the contract;

• the type of report(s) to be provided;

• the billing and collection of the fees to be charged; and

• any disclaimers relevant to the matter.

A number of attorneys may ask that an engagement letter not be used because it may imply a restriction
on the conclusions and scope of work of the CPA and, as such, may be used against the CPA at trial.
Nevertheless, it is recommended that a written engagement letter be obtained. Practitioners are encour-
aged to consult with their attorney or insurance provider for each specific engagement. The guidance in-
cludes the definition of client in each engagement.

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