The financial effect of children on Same Sex Couples

As is true for any couple, having children brings tremendous joy to a relationship, but also financial adjustment.

Will you or your partner take a sabbatical from work in order to care for your new child, or will you hire a full-time caregiver or pay for a daycare facility? Do your family plans include the loss of one partner's income until your child reaches school age, or longer? These are some of the issues that require financial planning.

Many same-sex couples have the added challenge of paying for medical procedures before their child is conceived. Couples who opt to start a family with the help of a surrogate, or through artificial insemination, will incur considerable fees. Once the child is born, additional expenses related to establishing legal rights to the child for the co-parent (non-biological parent) will be incurred.

Same-sex adoption is legal in some states and territories, and not in others. In some areas of Australia a co-parent can apply for a parenting order, which would grant them the status of a social parent, not a birth parent. Likewise, couples that choose to adopt a child together will also pay a significant fee to adoption coordinators, agencies, and attorneys, if they are allowed to adopt.

With so many unforeseen expenses and variations in Australian law with respect to second-parent adoption and joint-adoption, financial planning is an essential step toward your family's financial well being, whether you are just thinking about having children, have already begun the process, or are already raising children with your partner.

Beyond the cost of caring for and making space for an infant in your home and your life, there are long-term expenses to consider, such as childcare and school expenses, and saving for college. Looking further into the future, how would you and your partner prefer to divide your estate? Would you divide your assets among your children? Would you endow part or all of your estate to a charitable organisation? In making these important decisions there are special considerations for same-sex couples with respect to inheritance tax and division of property that must be explored with a qualified expert.