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.
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.
But notice it is taxed at ordinary rates.
However, it does offset capital losses so it is a hybrid of sorts.
Capital gain taxed at maximum ordinary rate of 25%.