California’s 2025 Social Media Income Laws –
Most parents don’t realize their child’s Instagram fame could become marital property—until divorce forces the conversation. At our Los Angeles family law practice, we’ve seen firsthand how California’s new Child Content Creator Act (AB 1516) is reshaping custody battles and asset division for influencer families. Here’s what every parent needs to know.
The New Legal Reality for Kidfluencers
Effective July 2025, California requires:
– 15% of gross earnings from monetized child content must be set aside in trust
– Court approval for withdrawals before the child turns 18
– Detailed accounting of all brand deals, sponsorships, and ad revenue
Shocking Case: We recently represented a TikTok star’s ex-husband who discovered $82,000 in undeclared earnings from their 8-year-old’s toy reviews.
How This Impacts Divorce Proceedings
1. Income Classification Battles
Courts now grapple with:
– Is this the child’s separate property (like a child actor’s Coogan account)?
– Or community income subject to 50/50 division?
– What about future earnings potential from viral content?
Current Precedent: Judge Thomas Griego’s 2024 ruling treats earnings as community property when parents actively manage accounts.
2. Custody Disputes Get Complicated
Parenting plans must now address:
– Who controls the accounts during visitation
– Content schedules (can’t interfere with school)
– Approval rights for sponsorships
Nightmare Scenario: A Glendale mom lost primary custody after forcing her daughter to film during school hours.
3. Tax Time Bombs
Many influencer families overlook:
– 1099 forms from platforms
– Deductible expenses (equipment, travel)
– Self-employment taxes
Strategic Solutions We Implement
For Content-Creating Parents:
✅ Establish separate business entities pre-divorce
✅ Document hours spent filming/editing as labor
✅ Create content calendars showing child’s limited involvement
For Non-Influencer Parents:
✅ Demand full financial disclosures from all platforms
✅ Request forensic accounting of undisclosed deals
✅ Negotiate royalty clauses for future earnings
Why Los Angeles Cases Are Different
Our entertainment industry proximity means judges here:
– Recognize subtle exploitation tactics
– Understand brand deal structures
– Appoint specialized GALs (guardians ad litem) for kidfluencers
Landmark Case: We helped a YouTube dad prove his ex was funneling earnings through a shell company—recovering $120k for their child’s trust.
How We Protect Young Creators
Hayat Family Law’s unique approach includes:
– Partnering with child labor advocates
– Hiring social media forensic experts
– Drafting ironclad trust agreements
Don’t let your child’s digital footprint become a divorce battleground. Call (310) 917-1044 to schedule a strategy session with attorneys who speak both legalese and influencer culture.
