Today, there are five million adopted children in the country. While the emotional rewards of adoption are priceless, the financial expenses can be a huge obstacle for prospective parents. However, managing these adoption costs is possible and can be more affordable than you may think.

What Are the Costs of an Adoption?

If you are considering adopting a child, you will want to know the expected costs. The type of adoption can make a big difference. For example, private agency adoptions in the U.S. can range from $30,000 to $60,000. Along with that, if you decide to seek an independent adoption, you can expect a cost between $25,000 and $40,000. International adoptions can be more expensive, reaching beyond $50,000. And, adopting a family member can reduce costs to $3,000.

Before bringing a child into your home, you will undergo a home study. This process evaluates your suitability as an adoptive parent. The required background checks, childcare training and administrative expenses can range from $1,000 to $3,000. Sometimes, the adoption agency will cover those fees. If they do not, you will be responsible for the total costs.

There may be additional expenses. For example, you may have to cover services for birth parents, including counseling and medical expenses. If you select an open adoption, you could also be responsible for travel expenses for the birth parents. When you are aware of these potential expenses, you can plan better for the adoption.

How To Reduce Adoption Costs

Adopting through foster care can significantly reduce adoption costs. With over 400,000 children in foster care who are searching for permanent homes, there is a need for adoptive parents. Incentives and subsidies are often available, especially for those willing to adopt older children or those with special needs. Even with subsidies, prospective foster parents will need to cover some costs.

You may want to explore all potential tax breaks and employer benefits. Some employers offer reimbursement for adoption expenses. In 2023, adoptive parents can exclude up to $15,950 in employer-provided adoption expense reimbursement from their taxable income. Additionally, qualified adoptive parents with a modified adjusted gross income below $239,230 can receive a tax credit for qualified adoption expenses.

Along with that, there are other ways to manage your adoption costs. They include:

Research Grant Opportunities

If you’re considering adoption, it’s worth looking into the various grants and financial assistance programs available to support adoptive families. Both governmental and nonprofit organizations offer grants to help cover adoption expenses. When you apply for these grants, you can get additional financial support for adoption costs.

Create a Budget

You will want to create a budget. These details can give you all the potential expenses related to the adoption process. You will want to add the agency fees, legal costs, travel expenses, home study fees and any other expected costs to your budget. You can avoid any unexpected strain with a clear picture of your financial obligations.

Adoption Loans

Loans from financial institutions could be a viable option if you are considering adoption and need financial assistance. Some credit unions and banks offer specialized loans with favorable terms specifically designed for adoptive families. However, you always want to carefully review the terms and interest rates before committing to any loan.

Why You Need an Adoption Lawyer

A New Jersey adoption attorney will make sure you have a fair and legally sound adoption process. With their understanding of state laws, they can help you with the costs of adoption. If you plan to pursue a private adoption, an attorney will act on your behalf to protect your interests. Along with that, they will provide solid legal advice regarding agreements or other binding contracts, which can protect you against exploitation.

Reach Out To a New Jersey Adoption Attorney

If you want to know the costs of an adoption, you may want to talk to an experienced attorney. At Cofsky & Zeidman, we can help you understand what to expect regarding the costs of adoption in New Jersey. Schedule a consultation by calling 856-429-5005 today.