Adoption is an investment. It’s an important, life-changing event and it’s not surprising that there are expenses involved. Expenses relating to adoption can range from hospital costs for the birth mother, home study costs, and legal fees to the new dress you buy for the expectant mom. But it’s important to keep track of all the expenses because in the state of Arkansas you are legally required to file a full accounting of all adoption expenditures. At the beginning of your adoption journey, make a plan to keep track of and document those expenses.
Who needs to file the accounting report?
Adoptive parents must file a full report of their expenses with the court before the adoption petition is heard.
There are exceptions. This filing is not required
- for stepparent adoptions, when the person wanting to adopt is the spouse of the natural or adoptive parent of the child
- for adult adoptions
- for kinship adoptions by grandparents, aunts, or uncles, or siblings.
- for adoption of one’s own natural child
In all other cases, this filing is essential.
What information should the report contain?
The report must contain an itemized list of all the expenses involved in the adoption:
- medical expenses of the birth mother
- allowable living expenses of the birth mother
- medical expenses from the child’s birth
- services, including legal services, for all parties involved in the birth or placement of the child
For each of the items on the list, the report must contain the amount and the time during which the expose was or will be paid. For example, if the adoptive parents pay rent for the expectant mom, the report must say how much the rent was and which months were paid.
What’s the point of all this record-keeping?
This requirement is for the protection of everyone involved. It is absolutely illegal to pay compensation for a baby, as it is illegal to buy and sell human beings. The expense accounting clearly shows that the funds spent are to cover the costs and needs of the mother and child, not to buy a human being. A careful accounting shows that everything was done in a legal and above-board manner and ensures that there will never be any question about the propriety of the adoption.
You may also find the records useful for your taxes.
Keeping records
Buy a ledger or use a budgeting app, spreadsheets, or any accounting method that is comfortable for you. Heimer Law can help you figure out the best way to keep track of the expenses.
Then be faithful about recording every expense. Soon, keeping track of all your adoption expenditures will be second nature.