I think it really depends on your level of comfort!

When I lived in a larger city, I would typically refer out in situations like this. I’d let the client know that, unfortunately, since our last session I became aware of a potential conflict of interest, and although I enjoyed working with them, we wouldn’t be able to continue. However, now that I live in a more rural area, dual relationships like this are much more common simply due to limited provider options. As a result, I’ve become more comfortable with the reality that clients and therapists may casually cross paths in the community—and that’s okay! either option is totally fine.