Buy Now, Pay Later (BNPL) services have become a popular way to finance everything from electronics and furniture to groceries and travel. While spreading payments over time may seem convenient, these loans can create unexpected complications if a marriage ends in divorce.

If you and your spouse used Buy Now, Pay Later financing during your marriage, you may be wondering who is responsible for repaying those balances. In California, the answer depends on several factors, including when the debt was incurred, how the funds were used, and the terms of your divorce.

Are Buy Now, Pay Later Loans Considered Marital Debt?

In many cases, yes.

California is a community property state, which generally means that debts incurred by either spouse during the marriage are presumed to be community obligations. That presumption can apply whether the debt came from a traditional credit card, a personal loan, or a Buy Now, Pay Later provider.

For example, if one spouse financed a new family appliance, children’s clothing, or household furniture through a BNPL plan during the marriage, that debt may be considered part of the marital estate, even if only one spouse opened the account.

Does It Matter What the Money Was Used For?

Absolutely.

Courts often look at whether the purchases benefited the marriage or were primarily for one spouse’s separate use. A Buy Now, Pay Later loan used for shared household expenses may be treated differently than financing for luxury items purchased after separation or for an unrelated personal expense.

The timing of the purchase can also make a difference. Debts incurred after spouses separate are often treated differently than debts accumulated while the marriage was intact.

Your Divorce Agreement Doesn’t Always Bind the Lender

Even if a divorce judgment states that one spouse is responsible for paying a particular Buy Now, Pay Later account, the lender is not required to remove the other spouse from the contract.

If both spouses signed the financing agreement or are otherwise legally obligated on the account, the lender may still seek payment from either borrower if the balance goes unpaid. In that situation, the spouse who pays the debt may have legal remedies under the divorce judgment, but resolving the issue can take additional time and expense.

Protect Yourself During the Divorce Process

As Buy Now, Pay Later financing becomes more common, it’s important to identify these accounts early in the divorce process. They can easily be overlooked because they may not appear alongside traditional credit card statements.

Working with your attorney to identify all outstanding debts, determine whether they are community or separate obligations, and negotiate a fair allocation can help reduce the risk of future disputes.

If you’re navigating a divorce and have questions about Buy Now, Pay Later loans or other marital debts, the family law attorneys at Lonich Patton Ehrlich Policastri can help. We’ll review your financial situation, explain how California law may apply to your circumstances, and work to protect your interests throughout the divorce process. 

Contact our San Jose office today to schedule a free consultation.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter. 

Family law courts are adapting to the gig economy by developing new approaches to verifying income, calculating child support, and enforcing payments. Most child support systems were designed around predictable paychecks. Previously, courts could easily verify income and calculate monthly support based on W-2s, and enforce payment through payroll deductions. 

Gig work complicates the process. Because there is no traditional employer, judges have to verify income using financial tracing, other documentation, and alternative proof of income. The variable income of gig work also makes calculating child support more difficult. Courts now look at the average income over a longer period. Finally, since courts can’t rely on wage garnishment, they are exploring new enforcement mechanisms like changing reporting requirements for gig platforms. 

How Courts Verify Income for Gig Workers

Courts now require more documentation to verify income, including multiple 1099s, bank statements, digital payment histories, and business expense logs. If income is difficult to verify, or if the court suspects hidden income, they will sometimes also pursue alternative proof of income. For instance, they might examine loan applications where a parent would be more likely to report actual earnings to try to secure a loan.

How Courts Calculate Child Support for Gig Workers

Instead of relying on a single paycheck, courts now need to review income over longer periods. Judges use tax returns, bank statements, 1099 forms, profit-and-loss statements, and payment platform records to average earnings across 12 to 24 months. This average creates a more stable estimate of monthly income.

One of the biggest concerns in gig economy cases is underreporting income. Typically, courts focus on net income rather than total revenue. However, gig workers often have legitimate business expenses like gas and vehicle maintenance, home office expenses, etc. Judges may closely review these deductions to make sure they are not artificially reducing income.

If a court believes a parent is intentionally earning less or hiding income, a judge may “impute income.” The judge assigns an income level based on work history, prior earnings, education and skills, and lifestyle evidence. The court will then use this imputed income to calculate child support payments.

How Courts Enforce Child Support Payments for Gig Workers

Traditional child support enforcement relies heavily on wage garnishment through employers. In fact, 75 percent of collections come from income withholding.  Gig workers often do not have a single employer, making enforcement more complicated. 

To adapt, courts are expanding enforcement methods to include things like: 

• Tax refund seizure
• Bank and investment account levies
• Liens against property
• Passport denial
• Suspension of driver’s and professional licenses
• Monitoring 1099 income
• Data matching with payment processors

Some states are also exploring partnerships with gig platforms to improve income reporting and payment collection. Federal law only requires employers to report W-2 employees to the State Directories of New Hires. Some states, like California and Texas, have enacted legislation that requires gig economy platforms and companies to report independent contractors as well.

What We Often See in Practice

At Lonich Patton Ehrlich Policastri, we find that many parents assume that child support obligations automatically change when income drops. Unfortunately, that is not the case, and unpaid balances continue accumulating unless the order changes. Parents need to file a formal request with the court promptly if their income changes due to medical emergencies, economic downturn, losing access to a gig platform, experiencing seasonal slowdowns, etc. We encourage clients working in the gig economy to stay as organized as possible, document their earnings carefully, and request modifications to child support promptly to avoid disputes and maintain compliance. If you need help with child support issues, you can schedule a free consultation with our family law attorneys.

Frequently Asked Questions

Q: Can child support be taken directly from gig app earnings?

• A: In some situations, yes. Although gig companies classify workers as independent contractors, courts can still issue income withholding orders or collection actions tied to platform payments. However, the law is still evolving, and enforcement rules vary by state and platform.

Q: Can child support payments be lowered if gig income drops?

• A: Possibly. However, support payments do not automatically decrease when income changes. A parent experiencing a significant decrease in income may request a child support modification through the court. The existing order remains enforceable until the court approves a new amount.

Q: What happens if a gig worker falls behind on child support?

• A: If payments are missed, unpaid support may accumulate as arrears. The court can impose penalties such as contempt proceedings, interest charges, tax refund seizure, license suspension, bank account levies, and credit reporting.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter. 

More couples today are choosing to live together without getting married. For some, it’s a step before marriage. For others, it’s a long-term arrangement that better fits their lifestyle and financial goals. While cohabitation has become increasingly common, many unmarried couples are surprised to learn how limited their legal protections can be compared to married spouses.

As family dynamics continue to evolve, legal systems are slowly adapting to address the realities facing unmarried couples, especially when it comes to property, finances, and children.

Cohabitation Is More Common Than Ever

In the past, marriage was often viewed as the default path for couples building a life together. Today, many couples choose cohabitation for personal, financial, or cultural reasons. In high-cost areas like the Bay Area, couples may share homes, finances, and even children for years without legally marrying. 

The challenge is that living together does not automatically create the same legal rights that come with marriage.

Many people assume that long-term cohabitation creates “common law marriage” protections, but California does not recognize common law marriage established within the state. That means unmarried couples may not have automatic rights related to property division, financial support, or inheritance if the relationship ends.

Why Legal Planning Matters for Unmarried Couples

When unmarried couples separate, disagreements can quickly arise over shared assets and financial responsibilities. Questions often include:

• Who owns the home or property?
• How should shared expenses be divided?
• What happens to jointly purchased assets?
• Is one partner entitled to financial support?

Without clear legal agreements in place, resolving these disputes can become stressful and expensive.

This is why more couples are turning to cohabitation agreements. These agreements function similarly to prenuptial agreements by outlining how finances, property, and responsibilities will be handled during the relationship and in the event of a breakup.

Legal Reforms Are Slowly Expanding Protections

Across the country, lawmakers and courts have started recognizing that unmarried couples often face many of the same financial and parenting issues as married couples. While legal reforms vary by state, several trends are emerging:

Greater Recognition of Shared Property Interests

Courts are increasingly willing to examine financial contributions made by both partners, especially when one person contributed to mortgage payments, renovations, or shared investments.

Expanded Parenting Protections

For unmarried couples with children, courts continue to focus on the best interests of the child, regardless of the parents’ marital status. Custody and support rights generally apply equally to both parents.

Increased Use of Cohabitation Agreements

More couples are proactively creating legally enforceable agreements to avoid uncertainty and conflict later.

Common Issues Unmarried Couples Overlook

Many unmarried couples delay legal planning because they assume they will “figure it out later.” Unfortunately, that can create serious complications down the road. Some commonly overlooked issues include:

Estate Planning

Without a will or trust, unmarried partners may not automatically inherit assets or have decision-making authority during medical emergencies.

Real Estate Ownership

If both names are not properly documented on property records, disputes can arise over ownership rights.

Financial Accounts and Debt

Shared bank accounts, loans, and credit obligations can become difficult to untangle after a separation.

Protecting Yourself and Your Future

Cohabitation can offer flexibility and independence, but it also requires thoughtful legal planning. Having clear agreements and updated legal documents can help couples avoid unnecessary disputes and protect their financial future.

At LPEP Law, we help Bay Area clients navigate modern family law issues, including cohabitation agreements, property disputes, and long-term planning for unmarried couples. Our team works to provide practical guidance tailored to your unique situation.

If you are living with a partner and want to better understand your legal rights and options, contact our office today to schedule a free consultation and plan for the future with confidence.

Disclaimer: this article does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.