Understanding Michigan Surrogacy Compensation
1. Is paid surrogacy legal in Michigan now?
Yes! As of April 2, 2025, Michigan’s Assisted Reproduction and Surrogacy Parentage Act (ARSPA) makes compensated surrogacy legal. For the first time in decades, intended parents and surrogates can enter enforceable contracts without fear of penalties.
2. What does a surrogate get paid?
Surrogates receive base compensation for their time, commitment, and the risks of pregnancy.
- Payments usually begin once pregnancy is confirmed by ultrasound.
- They are paid monthly until delivery.
- Some compensation becomes guaranteed after certain stages of pregnancy (for fairness if there’s a loss or early delivery).
- The total amount varies depending on experience, location, and whether an agency is involved.
3. What expenses are reimbursed?
By law, intended parents must cover the surrogate’s independent attorney fees. But in most agreements, intended parents also pay for additional pregnancy-related expenses, such as:
- Health insurance and life/accident insurance
- Monthly allowances for transportation, medications, and supplies
- Maternity clothes
- Travel to medical appointments
- Extra childcare or housekeeping if the surrogate is placed on bed rest
4. Are there extra payments for medical procedures?
Yes. Most agreements provide additional compensation for:
- Cesarean section (C-section)
- Selective reduction procedures
- Surgery after miscarriage
- Other serious medical complications
If long-term consequences occur—like losing reproductive ability—agreements may also include additional support.
5. How are payments handled?
Most families use an escrow account, even though it’s not required by law.
- Intended parents deposit funds at the start.
- The escrow company releases payments on a set schedule.
- This ensures payments are safe, timely, and clearly documented.
6. Do surrogates pay taxes on their compensation?
Most compensation is considered taxable income. The IRS hasn’t issued specific rules for surrogacy yet, so it’s important for surrogates to talk with a tax professional to prepare properly.
7. Do intended parents and surrogates need lawyers?
Yes. Michigan law requires independent attorneys for both sides. This protects everyone and ensures contracts are enforceable. Both parties must work with Michigan-licensed attorneys.
8. What does this mean for families?
Michigan was the last state to ban paid surrogacy. Now, families and surrogates can build agreements that are safe, fair, and fully legal without leaving the state. Intended parents can also be recognized as the baby’s legal parents at birth, avoiding the painful adoption process some families faced under the old law.
In short: Michigan’s new law makes surrogacy a secure and positive path for families and surrogates, with clear rules for compensation, expenses, and parentage.