What Is The Cost Of Adoption?

Adoption is a wonderful act that can change the life of an adopted child for the better, not to mention enriching the lives of the adoptive parents. While adoption can be beautiful, the costs can add up quickly. It’s important to prepare for the financial side of the adoption process to make sure your finances are ready for the major expense.

What Is The Average Cost Of Adoption?

The cost of adoption typically ranges from $2,500 to $45,000, according to the National Adoption Foundation. Within those parameters, the cost of adopting a child can vary dramatically depending on where you live, the age of the child you’re adopting, the type of adoption you pursue and other factors.

The Cost For Different Types Of Adoption

Prospective parents can work with public and private agencies to pursue adoption. In general, the type of adoption has a big impact on your costs. Below is a closer look at costs to expect from each type of adoption.

Domestic Adoption

Domestic adoptions include children born into the United States adopted by U.S.-based parents. With the help of an attorney, the National Adoption Foundation estimates you could expect to pay between $25,000 to $45,000 to finalize a domestic adoption. 

Expect to pay for court documentation, legal fees and more. Ultimately, the costs vary based on the unique situation.

International Adoption

When adopting a child from a different country, Parents.com places the total adoption costs between $20,000 to $50,000 on average. In addition to court documentation and legal fees, international adoptions can also include foreign travel and immigration assistance.

Foster Care Adoption

When you agree to foster a child, the goal is to reunite the child with its birth parents. But if the parents surrender their rights, you might have an opportunity to adopt a child from foster care.

In general, foster care adoption is the most affordable option.

What Makes Adoption So Expensive?

As you pursue adoption, you’ll quickly realize that the process can get expensive quickly. Below are some of the reasons why adoption costs add up.

Home Study

A home study is part of the adoption process. It’s designed to ensure that the prospective parent’s household is suitable for children. It includes a health assessment, criminal background checks of every adult in the household, personal references, an autobiographical statement and copies of legal documents, like your marriage license if applicable. Additionally, you should expect to provide financial details to confirm you can afford to take care of a child.

In general, a home study costs $1,000 – $3,000, according to AdoptUSKids.org.

Legal Costs

The adoption process is filled with lots of paperwork, which requires the help of an attorney. You should expect to pay thousands of dollars to a qualified attorney. Additionally, you’ll likely find court documentation fees that add up.

Birth Parent Costs

The birth mother likely has medical expenses and legal fees on their end. Depending on the situation, the adoptive parents might help the birth mother shoulder these costs during her pregnancy. Medical care can be incredibly expensive to cover, especially in the United States.

Travel

If you plan to travel to another location for an adoption, those costs can add up. That’s especially true if you plan to pursue an international adoption. You’ll need to factor travel and lodging costs into your overall adoption budget.

Travel could be thousands of dollars. If you are adopting a child in your town, you might avoid travel costs altogether.

Ways To Help Pay For Adoption

While saving money is one way to pay for adoption, it isn’t the only way. As you pursue this major milestone, it’s helpful to consider other financial resources that might help you cover the costs of adoption.

Grants And Loans

If you qualify for adoption grants, you won’t have to repay the funds. With that, grants are an ideal choice for adoptive parents.

If you don’t qualify for a grant, it’s possible to pursue an adoption loan. Some organizations offer adoption-specific loans. But another option is to use a personal loan or home equity loan to cover the cost of adoption.

Tax Credits

The federal government offers tax credits that can help offset adoption costs. Depending on the year you adopt, you could receive over $15,000 as a tax credit to help you cover adoption costs. Importantly, the adoption must be finalized before you can claim the credit.

Additionally, some states offer state tax benefits for adoption. Seek out the advice of a tax professional to determine if you qualify for any of these tax benefits.

Workplace Adoption Benefits

Some companies offer financial benefits for adoptive parents. For example, you might be able to take paid time off during the adoption process. 

Beyond paid time off, some employers offer adoption assistance programs. While the details vary from company to company, some employers offer thousands of dollars in reimbursement for adoption costs for employees.

Money Withdrawn From A Retirement Account

If you’ve built savings in a retirement account, like a 401(k) or traditional IRA, you could tap into those savings to cover adoption costs.

The downside of withdrawing funds from your retirement account is that you should expect to pay a penalty. Ultimately, this choice could derail your retirement plans. But if you need access to funds now, it might be worth it.

The Bottom Line

Adoption costs can add up quickly. The good news is that careful financial planning can help you make the process of providing a loving home to a deserving child more affordable.

As you move toward adoption, it’s a good idea to get serious about your financial situation. Download the Rocket Money℠ app for help in reaching your savings goals.