Handman studied acting at The Neighborhood Playhouse School of the Theater in New York City. Later he was the Artistic Director of The American Place Theatre, which he co-founded with Sidney Lanier and Michael Tolan in 1963. As a director, he was instrumental in bringing to the stage the early work of many of America's finest playwrights, including Sam Shepard.

He was also a noted teacher for over 50 years who trained many outstanding actors including: Alec Baldwin, James Caan, Chris Cooper, Michael Douglas, Mia Farrow, Richard Gere, Joel Grey, Allison Janney, Raul Julia, Frank Langella, Susan Lucci, Donna Mills, Burt Reynolds, Tony Roberts, Anna Deavere Smith, Mira Sorvino, Christopher Walken, and Denzel Washington.