Adoption Disruption Insurance

You can protect your financial future and your dream of parenthood by securing adoption disruption insurance through a licensed agency.

While most adoption journeys end with a joyful placement, the reality of private infant adoption includes the risk of a "disruption"—when an expectant mother chooses to parent her child before the legal process is finalized. By choosing an agency with built-in financial protection, you ensure that a change in plans doesn't become a permanent financial roadblock to your family's future.

We are here to answer your questions about what happens if an adoption falls through, how our agency handles adoption refunds, and why adoption disruption insurance is the single most important tool for avoiding the hidden costs of adoption in Texas.

What Is Adoption Disruption Insurance in Texas?

In the context of Texas adoption, adoption disruption insurance (often referred to as a "Risk-Sharing Program") is a financial safeguard designed to protect your financial investments. If a birth parent match does not result in a legal placement, this program ensures that the funds you have already committed are not lost.

Under the Texas Family Code § 162.025, adoptive parents are legally permitted to pay for a birth mother’s "necessary pregnancy-related expenses" through a licensed agency. However, if that birth mother has a change of heart—which is her absolute right until her parental rights are legally terminated—the money spent on her rent, medical bills, and legal fees at many other agencies is simply gone.

Adoption disruption insurance acts as a safety net, ensuring you have the resources to move forward with a new match.

How Often Do Adoptions Fall Through?

It is a difficult reality to discuss, but adoption disruption is not a rare occurence. Nationwide, and within the state of Texas, approximately 10% to 25% of adoption matches do not reach finalization. These disruptions often occur because an expectant mother, after receiving counseling and support, realizes she has the resources and desire to parent her child. It is important to remember:

• Disruption is not a reflection of you. It is a deeply personal decision made by the birth parent.
• Birth parents have legal rights. In Texas, an affidavit of relinquishment cannot be signed until at least 48 hours after the baby is born.
• It is an emotional hurdle, not a dead end. Families who experience a disruption often go on to successfully adopt, provided they have the financial and emotional support to try again.

Adoption Disruptions: A Hidden Cost Many Families Don’t Anticipate

Many "low-cost" agencies or independent facilitators look affordable on paper because they exclude the price of financial protection. These providers may not give you a realistic estimate of the hidden costs of adoption that arise when a match fails.

If an agency does not offer adoption disruption insurance and you experience a disruption:

1. You lose your initial investment: All funds spent on birth mother support, medical bills, and agency work are gone.
2. You must save again: Most families cannot afford to pay $20,000+ twice. This can add years to your wait time as you work to rebuild your adoption fund.
3. The "Hidden" Re-Match Fee: Some agencies will charge you a new "activation" or "matching" fee just to put your profile back in front of birth parents.

At American Adoptions of Texas, our costs include this protection. We don't want you to lose time because you've lost money.

What Costs Are at Risk During an Adoption Disruption?

To understand why adoption disruption insurance is vital, it helps to see the itemized expenses that are typically non-refundable at other agencies:

• Birth Parent Living Expenses: Rent, groceries, and utilities paid during the pregnancy.
• Medical Expenses: Prenatal care and hospital bills not covered by insurance.
• Legal Services: Fees for attorneys to draft documents and coordinate with the court.
• Agency & Counseling Fees: The hours spent by social workers and 24/7 counselors.

Can We Adopt Again After a Disruption?

Absolutely. The primary goal of adoption disruption insurance is to make a second attempt possible. When your finances are protected, you are not "starting from zero."

With a true Risk-Sharing Program, your agency provides an adoption refund or a credit that allows you to re-enter the matching process as soon as you are emotionally ready. This means you can keep your profile active and potentially match with another birth mother within weeks or months, rather than years. We believe that a disruption should be a chapter in your story, not the end of the book.

How Adoption Disruption Insurance Works with a Texas-Licensed Agency

Licensed agencies in Texas are held to strict ethical standards. Our version of adoption disruption insurance is a built-in risk-sharing model. Here is how it works:

1. One-Time Investment: You pay a fee into the Risk-Sharing Program as part of your initial adoption fees.
2. Direct Refund: If a disruption occurs, we don't just "roll over" your money to a new contract—we refund lost expenses directly back to you.
3. Freedom of Choice: Because you receive a refund, you have the flexibility to use those funds however you see fit—whether that's immediately pursuing a new match or taking a few months to heal emotionally.

Does Every Adoption Agency Offer Disruption Insurance?

No. Many providers—especially unlicensed facilitators or small, local firms—do not offer any form of adoption disruption insurance. They may claim that disruptions "rarely happen" or suggest that the risk is simply part of the process.

We believe that is an unacceptable risk for your family. By choosing an agency that proactively addresses the hidden costs of adoption, you are partnering with a professional who is as invested in your successful placement as you are.

How American Adoptions of Texas Supports Families Through Disruption

We understand that an adoption disruption is first and foremost an emotional event. Our team is here to provide more than just a check; we provide the counseling and case management you need to process the loss.

We are proactive in our protection so that you can be fearless in your journey to parenthood.

Take the first step toward a protected future. Contact American Adoptions of Texas today to learn more about our Risk-Sharing Program and how we safeguard your family’s dreams.

 

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