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I had this same problem years ago with co-designer... he flattens things...

I assume you guys to be working on one computer?

A SIMPLE SOLUTION .... we would not flatten the file done by the other guy. PERIOD.  ...lol .... If there's a need to flatten, we save the file with different names.

We'd save our work files with our initials and work stage number... ie.  work_dv8_08 ..... work_flatter_08 .....  It worked well.  Which is why... always save the file at different major stages of the work with a number. You can go back later in an emergency. It may take up space in your hard drive, but you can always delete that later when the job is done.