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International vs. Domestic Adoption: What’s Best for You?

By Lauren Ward · April 22, 2021 · 5 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

International vs. Domestic Adoption:  What’s Best for You?

Choosing to adopt a child is an exciting milestone in life, but it’s also one that takes a lot of planning and effort. Future adoptive parents can opt for either a domestic adoption or international adoption, but there are a lot of differentiating factors that may influence the decision.

If you’re considering adoption, make sure you know the distinctions between domestic and international adoptions, from the process and timeline to the costs involved, so you can decide what’s best for you.

Recommended: How Much Does it Cost to Adopt a Child?

The Domestic Adoption Process

One of the major advantages of choosing a domestic adoption is that you have the potential to adopt a newborn. However, the timeline is not set in stone and may depend on whether you opt for an open, semi-open, or closed adoption.

Most domestic adoptions are considered at least “semi-open.”

Depending on the agency you work with, you may need to be chosen by a birth mother based on your profile.

Once you’re selected, the timing depends on the expected (and actual) due date. The process usually takes a few months.

Another benefit is that you get access to the child’s medical records as well as the birth mother’s family history.

An open adoption entails some contact and conversations with the birth mother before the baby is born. In a semi-open adoption, personally revealing information is withheld between the adoptive parents and the birth mother.

Once the baby is born and you officially adopt her or him, the adoption agency facilitates sending updates to the birth mother, as well as pictures so she can see the baby is well taken care of.

Domestic Adoption Eligibility Requirements

American adoption requirements vary by state and by the adoption agency you choose to work with. You must be at least 18 years old, and there’s often a minimum age difference required between you and the child.

Most states allow domestic adoptions regardless of marital status; parents can be married, single, divorced, or widowed and still qualify.

Explore your state and city adoption websites for more details on additional requirements unique to your area.

The International Adoption Process

International adoption, thanks to rules and clearances, will not involve a newborn, so you must be open to welcoming an older baby or toddler to your home.

There are issues that could affect your ability to adopt, even in the middle of the process.

New international laws and relations between the United States and other countries have the potential to derail families who are in the middle of an adoption. The process varies by country but typically takes between 1.5 and 2.5 years.

While you can find out about the child’s medical history, you likely won’t know anything about the family history. Once you adopt a child from abroad, you won’t have any contact with the birth family.

International Adoption Eligibility Requirements

Each country has its own eligibility requirements for adoptive parents, which are much stricter than domestic requirements. Often you’ll need to meet income requirements, which may include a higher amount if you already have children. Some countries also have net worth requirements.

Finally, you may discover that some countries restrict the type of families that are allowed to adopt from there; for instance, some only offer adoption to married couples or single women.

These rules vary by country, and there are some countries, such as Colombia, that allow single men and same-sex partners to adopt.

International vs. Domestic Adoption Costs

The costs vary greatly with both international and domestic adoptions, but the common thread is that it’s quite expensive if you’re not adopting a foster child.

For international adoptions, expect to pay anywhere from $15,000 to $50,000, depending on the country.

In South Korea, for example, adoptions may cost between $35,000 and $50,000. In China, the range is $35,000 to $40,000. Adoptions from India may span $30,000 to $42,000.

Choosing an international adoption also requires you to travel to the country (often more than once) in advance of actually adopting your child.

Domestic adoptions through a private agency may cost between $20,000 and $45,000. It is much less expensive, and potentially even free, to adopt through foster care. However, as a foster parent, your goal is to help reunite the child with the existing family. Adoption may become an option, but it is not the primary objective.

Funding Options for Adoptions

Adoption costs are often out of reach for many U.S. families. But even if you can’t tap into your savings (or don’t want to), you can explore other options for funding your adoption.

Recommended: 5 Tips for Saving for a Baby

Employer Benefits

Some companies offer adoption assistance funds as part of their employee benefits packages. A report from the Society for Human Resource Management showed that only 10% of employers offered some form of adoption assistance.

On a more positive note, however, the same study found that 29% of employers offered paid adoption leave, providing flexibility to transition when a new family member arrives.

You may want to check with your HR department to make sure you don’t miss out any adoption benefits offered by your company.

Adoption Federal Tax Credit

The federal government provides some tax benefits for adoptions. First, if you use employer benefit funds to pay for the adoption, that money is excluded from your income so you don’t have to pay federal taxes on it.

Qualified adoption expenses include things like adoption fees, legal costs, and travel expenses.

The tax credit changes every year, but it amounts to $14,440 per child in 2021. There are income limits for qualifying for both the tax exclusion and credit.

Friends and Family

Many adoptive parents ask friends and family members for financial support when starting the adoption process. You could even start a crowdfunding campaign as a way for your broader community to donate to your adoption fund.

Hopeful parents may want to include a compelling personal story about the path to adoption to help draw in potential donors from their community.

Just remember that if you use a crowdfunding platform, you generally have to pay fees taken out of the money you’ve raised. This usually ranges from 3% to 8% when including both fundraising fees and processing fees.

Personal Loan

Another option for financing your domestic or international adoption is with an unsecured personal loan.

Unsecured personal loans typically come with a fixed interest rate and repayment period, so the monthly payments over a set number of years are predictable.

You’ll need good credit to qualify for the best interest rates. Lenders also take your debt-to-income ratio into consideration. You may qualify for a larger loan amount if your existing debt is low compared to your monthly income.

The funding from an adoption loan can be used for just about anything. That means the agency and legal fees but also soft costs like travel and meals, especially if you’re adopting from abroad.

The Takeaway

Choosing to adopt a child can be life-changing, but an international or domestic adoption usually carries a high price. With tax benefits and funding options available, you can worry less about how to pay for all of the costs associated with the process.

If you’re considering an adoption loan to help you pay for an adoption, explore your options with SoFi.

SoFi offers unsecured personal loans of $5,000 to $100,000 with no fees.

It’s easy to find your rate.



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