Confused about regulation for adopting

We added up our home, cars and even all our possessions (diamond rings, furniture, life insurance) and then minus the mortgage left on the house and credit cards/loans it added up to about $83,000.00. Funny thing is our salaries were not in the equation and we were ok. We just filled out the form provided to us by our agency and gave it to our social worker with the life insurance policies and that was all they needed to see. It seems to be a trust issue and all we had to do is notarize the sheet I believe. There was nothing we had to provide, maybe our last year's taxes but I cannot remember. It is pretty easy to find some stuff. Just look around your house and if you are like me I have some silver flatware, expensive china, big screen tv's, stuff like that all is considered "worth" something....once you start looking around, trust me you can make it add up on paper like we did. We were so worried about this too but once we got looking it easily added up. My engagement/wedding ring set was a good thing also......Good Luck, I am sure you will be ok. Don't forget about your IRA's, saving accounts, CD's or whatever other money you may have tied up in the bank or elsewhere.

Hmmmm ... We used our 401k and savings and vehicle and home but we didn't use life insurance. Interesting. We never thought of that. We've heard a lot of people say it's easier to come up with the $80,000 than you think. It's best to verify it all with your agency, though. We wonder if there are any experts on this (even among agencies) because this requirement is so new. It's always best to go with what your agency says, however, and if they seem unsure ask them to get it clarified. That's what they are being paid to do. :) Edited to add that our life insurance was included on our home study, so it was all there anyway.

Sounds like they are counting mortgages against you now...or maybe it's an agency specific thing. I agree, talk to your agency. When we adopted what they wanted to know was IF you lost your job (this is why salaries don't count) what do you have to liquidate so you can maintain your family until you get another job. At least that is how my agency explained it to me. So yeah...look around your house and see what you have. Even your clothes can count as an asset. (We don't own good china or silver flatware or jexpensive jewlery, but since I'm in the theatre I have a lot of friends who are designers/artists who have given me drawing and paintings etc. that are worth a little bit etc.)

I wonder if it differes by state or agency on the HS specific forms? You might want to ask your agency how the China form needs to be filled out and then make them both the same. If the numbers are off, you could be asked questions in review. We were allowed to count our equity as an asset, but our overall home loan didn't count against us as a liability....just our mortgage payment. We were also allowed to count any life insurance that we could cash in while alive. Mine cannot, but DH can cash in the whole amount minus some steep penalties. DH also owns a classic car that appraised for quite a bit more than I thought it would, so be sure you think of everything you own, even if it doesn't seem significant (or is under a tarp). It could make the difference if you're close to the 80k mark. Not to be a bummer, but don't forget those pesky student loans when figuring liabilities. That's the one and only time I was glad I overachieved in High School, but underachieved in college! :arrow:

If you have a house that, in today's marketplace, is worth $300,000, and you have a mortgage balance of $250,000 still to pay, you have $50,000 applicable to your "net worth". If your furniture and household effects are believed to be worth $25,000 -- you can use your insurance company's replacement cost figures -- and these items are fully paid for, you can add the full $25,000 to your net worth. So already you are at $75,000. If you have $40,000 in your IRA and 401(k) plans, but you have $10,000 in credit card debt, you can add $30,000 to your net worth, bringing you well over the net worth requirement. The net worth requirement is actually pretty low. Remember that "income" is not an asset, unless it's all in the bank. Assets are what you own -- bank accounts, homes, furnishings, boats, cars, computers, diamond rings, 401(k) plans, IRAs, mutual funds, stocks, bonds, vacation properties, etc. In counting net worth, you subtract liabilities from assets. Liabilities include things like total mortgage balances, credit and charge card debt, the amount you still owe on your car purchase, student loan balances, etc. They are not "what you owe this year", but what you owe in total. Income, for the purpose of an agency's forms, refers to what you earn from a job every year, plus whatever you may earn in a year as interest or dividends related to savings and investments. Living within your income means that if you subtract your annual expenses from your annual income, you come out even or with a surplus. Expenses include things you pay every month or on a one-time basis, like your electric bill, your phone bill, your Internet bill, your minimum credit card payment, your bills for beauty salon or spa services, your food bill, your rent or mortgage payment, etc. Sharon

If you have a house that in today'smarket is worth $300,000 then in my book you are rich. I admit I own a house, but it is NOWHERE near worth that much...and I still (financially) would be allowed to adopt from China even with school loans I am still paying off, a morgage, credit card debt and a car payment. Again it sounds like a lot, but it's really not too bad.

With our paperwork, I added anything I could to get my numbers over $80,000.00. I was really worried about it, but after I started wwriting things down, I came up with the number pretty fast. Also, we were never at any point asked to "prove" that what we were estimating the values to be were accurate. I guess if it seemed like a crazy number to your social worker, or notary maybe they would ask for documentation, but we were never asked for any proof.

I think one of the things that is confusing is that there are at least 4 or 5 different groups who set regulations for adoption. China, the US State Department, the US Citizenship & Immigration Services, whatever state you live in, and your agency. Georgia may have requirements that New York doesn't or visa versa. This agency may require things that the other doesn't. As a result, your agency really is the best place to answer the confusion. Generally: Net Worth = Assets less liabilities Assets include houses, furnishings, clothes, jewelry, 401k or other retirement accounts, investments, bank accounts, cars, boats, vacation homes, land, etc. Liabilities include mortgages, home equity loans, credit cards, furniture loans (90 days same as cash), student loans, etc. Family assets may not be the same as net worth. Family assets may only include the things in the asset category. Also, remember home values are relative. A $300,000 home would be pretty nice in most areas of the South East (excluding Florida probably). However, it wouldn't even be average in places like Seattle, San Francisco, New York, or LA.

Lissa, that's funny that you think that anyone who owns a house worth more than 300,000 is rich. We live in the Boston area. I don't think that there is such a thing as a house under 300,000 around here! If you were to find something for that cheap it would be a MAJOR fixer-upper. It's funny how the prices can be so different in different parts of the country. In my town, average houses are about 400,000 and this is considered a working class community! It's nice to know that you would consider us rich, but that's far from the case.:woohoo: Marjorie

I thought the same thing. I live near Cleveland in a small farming community and an article I read about the average home price for a house in my community was near $300,000. When we were looking for a new house 2 years ago, we couldn't find anything worth looking at for under $250,000 in our community.

Ahhhhhh, the benefits of living in "the sticks" Here a $300,000 house would be a 3 story, minimum 5 bedroom house that likely had several garages. I live middle income (cause I may be a professor--but I'm an ARTS professor so they make about a quarter of what the other professors make--no exageration) and those houses go for between $75,000-$100,000.

This is funny to read about the houses in different areas. When we built our house 7 years ago, we paid $20,000 for 3.5 acres in the country and I commute to work. I love it. But now because of some many moving here, our value of our land is $35,000 to $40,000 an acre. I could not believe it when we adopted Kennedy and I found that out. Also where we live, you can buy a beautiful house for $150-$200,000 and have a mansion with lots of land. You might see a cow walk by or block the road but the quiet and schools are worth it:coffee: On the note of net worth, I agree that you think of everything and it will come out better than you think. Also double check with your agency if you are worried. They can also help you find things you do not think about. Good luck! I still am having a hard time picturing a fixer upper at $300,000! LOL and our house is 4800 square feet!

I agree that once you start plugging the numbers in you will come up with the 80,000 pretty quickly. I created an excel spreadsheet to calculate our net worth that makes it pretty easy to figure out. Just plug in your numbers in the yellow shaded areas and it does all of the calculations for you. I cannot attach it but if you would like a copy just pm me your email address and I will email it to you.

WOOO HOOOO I'm rich, I'm rich!!! Ya hear that, The Donald? I'm rich. Lissa says so! And I believe her. :arrow:

Hi this is david clak.I have jewelry assets like [URL="http://www.diamondexotica.com"]Diamond rings[/URL],Gold ornaments worth $1 million,Still property woth $10 million,Bank investment,3 Cars.... What are my chances?