The hidden costs of cross-border adoption

How to adopt Brangelina-style

As you stand in line at the drugstore, surreptitiously scanning the tabloid headlines to see if Brad and Angelina are really going to adopt a seventh child, you may start to ponder the feasibility of adopting a child from overseas.

Adopting a child from another country is a very real consideration for many couples and individuals who want to start a family, or add to their own. Roughly 2,000 children from abroad are adopted by Canadian families every year.

As you know, there are heaps of wonderful Canadian children waiting to be adopted. But perhaps you have a desire to adopt a child from the country of your family’s heritage. Or maybe your travels have taken you to a region where the conditions of poverty or political oppression have torn at your heartstrings, and you wish to give a child from there a chance at a more prosperous life.

Most of us do not have the budget of Brangelina. When making the decision to have a child by any means, you need to have a realistic sense of what you’re getting yourself into. Only then can you figure out your financial plan.

Generally, experts say the overall cost for a foreign adoption averages between $15,000 and $35,000. That’s a big range. International adoptions are subject to many more variables and surprise costs than domestic private adoptions or adoptions through the public system.

Here is a run-down on some of the costs you may encounter when cross-border adopting.

• Information sessions – Offered by adoption agencies, prices range from free to upwards of $100 each.
• Home study fee – You will need a licensed social worker to visit your home and prepare a report that the government will review in order to declare you as a suitable candidate for adopting a child. Keep in mind, a home study report is only valid for six months, so if you don’t adopt before the expiry date, you’ll need to pay for another one. Fees generally range from $1,500-$3,000.
• Agency fees – Are you a full-service kind of gal, or more of a D.I.Y. type? Either way, you will need a provincially-regulated adoption practitioner to help with the actual processing of the adoption application with the government. Agency costs can be less than $10,000 or closer to $20,000, depending on the services included, such as the home study, child searches and so on.
• Online profiles - Think of it as Facebook for adoption. In North America, many people choose to introduce themselves via websites to women seeking private adoption arrangements for their unborn children. Costs to create a profile typically run between $200 and $600.
• Legal fees – An hour or two of counsel with a good immigration lawyer, or a family law attorney who specializes in international adoptions can be worth its weight in gold. Fees vary, from $150 to $500 per hour.
• Government fees – From sponsorship to immigration, you will have to pay administrative fees to the Canadian government for various applications, translations, notarizations, immunizations and more. More expensive however, is the myriad of processing fees you will need to pay to the country from where the child originates. You may wish to budget for upwards of $5,000.
• Travel costs – Start packing sweetheart! Don’t think you can do this all online, then just hop a flight to pick up your kid. Many countries require a series of visits to ensure that new parents are well acquainted with the child’s culture and ethnicity. Some parents have spent more than $10,000 on flights, hotels and other travel expenses.
• After baby comes home - Don’t get so caught up in the adoption process that you forget about budgeting for the actual child-rearing...all those adorable little organic t-shirts and ergonomic strollers add up! Depending on the child’s country requirements, you may also have to pay for a series of follow-up home study reports.

So how do you budget for all this? Fortunately, most of the costs will come to you in stages, rather than in one lump sum. The federal government does provide a limited tax credit for adoption expenses. Check with your provincial government about other possible tax breaks or grants. Furthermore, some banks provide financing arrangements and lines of credit specifically to help adoptive parents. Finally, check with your employer; many benefit packages offer assistance for adoption expenses.

Ultimately, no one can put a price on the joy of raising a child. And no amount of preparation can truly school you for the magnitude of being a parent. If you do your best to be ready for the financial costs ahead of time, you will have much more energy and excitement to focus on what’s most important.

And who knows, maybe one day you’ll find yourself on a beach in Africa, swapping adoption stories with Mr. Pitt. (A girl can dream...)

 

Nothing contained herein is intended to provide personalized financial, legal or tax advice. Before implementing any financial strategy, you should obtain information and advice from your financial, legal and/or tax advisers who are fully aware of your individual circumstances.

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