Graceful way out?

We hired a photographer to do a family portrait recently. He is someone we know from a business group. He asked me to give him an honest opinion on something in confidence which i did. Although I can't confirm it without a doubt, I believe he broke that confidence. I feel that in order to work together on something as personal as family portraits, I need to trust him, and I no longer feel that I can. Because of the business connection and the fact that this situation may effect another member of this group and because I'm not 100% sure of the betrayal, I simply want to cancel the sitting without getting into the real reason why. What is the best way to cancel and get back my deposit? I have to see this person on a monthly basis and don't want it to be any more awkward than it has to be.

I'm afraid if I say we are holding off, he will tell me to call him when I am ready and hold the sitting fee, and it's over $200 so I definitely want it back.

You may tell this person that an urgent financial/family matter came up and that - for the moment - you need the money for this.
Tell him that you will get back to him/her to confirm if you are going through with it or not., that you have to check out your priorities. If he is honest, he'll give you your deposit back. I don't like to lie but sometimes a white lie is better for everybody concerned and will help keep the peace. No need to upset him/her by telling the person that you lost your trust in him/her.

Keep it simple and vague (as suggested above) but when you do get around to taking the portrait...make sure to not tell a lot of people about it so it doesn't get back to him - especially not to this other person whom you believe to be in on the betrayal.
Make sure you cancel in plenty of time to reasonably get your deposit back...there is a point where the studio might consider you too late for a full refund and that would be really difficult.
Good luck.

Is there a contract you signed? If so, what are the terms of the contract? Does it seem to offer any reason for canceling? I would say that you've taken a big hit financially and will not be able to splurge on family photos any time soon, and in fact you really need that money back and would appreciate his understanding, just between he and you, that is...

I'd ask him straight up. Personally, I can't understand the connection between him taking your family's picture and you not trusting him. If his pictures aren't great, don't buy any.

"We've decided to hold off on the family portrait until a little later."