If you are considering adoption in Michigan, it’s important to understand the legal and financial expenses involved. The process can be costly in addition to complex.
Adoption expenses and fees
Michigan families that adopt through the state’s foster care program incur no expenses or fees apart from small court fees, which are reimbursable. Adoption assistance programs exist to offset the costs of parenting.
The fees below apply when working outside of the state foster care program.
- Adoption agency fees: When working directly with an adoption agency, you can expect to pay various fees, including application fees, home study fees and administrative costs. These fees typically range from $1,000 to $3,000.
- Legal fees: These can vary depending on the complexity of the case and the attorney’s rates. Generally, you can anticipate legal fees ranging from $5,000 to $10,000.
- Birth parent expenses: In some cases, adoptive parents may be responsible for covering certain birth parent expenses, such as medical and counseling costs. These expenses are determined on a case-by-case basis and can range from a few hundred to several thousand dollars.
- Interstate adoption costs: Adopting a child from another state may result in additional expenses, including travel costs, lodging and legal fees associated with interstate adoption laws. These costs can vary greatly depending on the distance and specific requirements.
- International adoption expenses: When the adopted child is from another country, the expenses increase exponentially. Working with an agency that handles international adoptions, acquiescing to a far more detailed background check and documentation process, travel expenses, foreign program fees and post-placement fees can all take the costs well into the tens of thousands of dollars.
Financial assistance and tax credits
When adopting through the state foster care program, families are often eligible to receive the following benefits:
Adoption tax credit
As an adoptive parent, you may be eligible for a federal adoption tax credit, which can help offset some of the adoption-related expenses. In 2021, the maximum adoption tax credit was $14,440 per child.
Michigan adoption subsidies
The state of Michigan offers adoption subsidies to assist families in providing financial support for children with special needs. These subsidies can help cover medical expenses, therapy costs, and other necessary services.
Tuition assistance
In some cases, parents of older children adopted from the foster care system might be eligible to access programs that are in place to help pay for education. There are both state and federal subsidized options, with most states offering private or non-government-assisted options as well.
Peace of mind at a crucial time
While the cost of adoption may vary depending on various factors, understanding the financial aspects can help you plan and make informed decisions. Being aware of the expense involved and available financial assistance programs can offer peace of mind and confidence while you embark on this life-changing journey.