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International Surrogacy Developments: Financial Impact On Families

Michael Gregory

1 November 2022

In a globalised world, and one where cross-border legal matters are a familiar part of the wealth management world, it can throw up unusual-sounding issues. One such is how surrogate pregnancy can be a cross-border matter, affecting high net worth individuals, among others. In this article, Michael Gregory, a partner at , talks about the difficulties and offers pointers for clients seeking solutions.

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Having acted for many high net worth families over the years, consideration of overseas countries to address a personal need when the same is not readily available here in the UK, has always been high on their priority lists. The same can also be said for couples planning to start a family.

Now foreign travel has opened after the pandemic, I am once again seeing more couples who are choosing to embark on their pathway to parenthood abroad. The legal restrictions here within the UK which make commercial surrogacy illegal, coupled with the ‘small pool’ of surrogates available to carry any child to be born gestationally through a surrogacy arrangement, continues to compound those decisions for couples to look abroad. 

For many couples, they embark on their parentage pathways to the US. This is due to the well-known ‘pre-birth’ orders that are readily available there in several states, which ensure that the new commissioning parents are recognised as the legal parents immediately upon the birth of any child born through a surrogacy arrangement. There is also the certainty of being able to enforce any surrogacy agreement that is entered, since these are considered legally binding and afford the intended parents and surrogates alike with the appropriate legal protection they need. Surrogacy agreements in the US, after all, can cost on average anything between £140,000 ($160,881) to £250,000.

From a financial perspective, due to the high level of costs associated with a US-based surrogate arrangement and to also avoid the lengthy travelling times, many couples venture to other parts of Europe nearer to home where surrogacy laws are far less stringent than here in the UK, and where those countries permit surrogacy for foreign intended parents.  

Prior to the war, Ukraine, for example, was one of the largest suppliers of surrogates and a destination for many couples who wanted to commence a pathway to becoming parents. The average cost of surrogacy in Ukraine was approximately £30,000 to £70,000 (significantly less than the US) but provided a legal framework like a US surrogacy arrangement, whereby the intended parents are considered the legal parents from birth. 

However, the intended parents must show a medical need for surrogacy and be there for the birth itself. The intended parents must also be there for a period of time after the birth whilst immigration requirements are resolved in order to bring any child back to the UK. 

The impact that the onset of the war in the country has had on surrogates and intended parents alike has been immense, with many surrogates relocating and/or fleeing to other countries where surrogacy agreements do not have the same legal protection as in Ukraine or indeed are recognised or are even legal. Intended parents have to face being unable to even access the country and be with their surrogate at the time of the birth or spend sufficient time in such a war-torn environment to be able to deal with, or address, all the official documentation needed to be able to bring any child back to the UK. 

Relatively modern
Other European countries such as Georgia for example, despite having relatively modern views on surrogacy, only recognise those with opposite sex as intended parents and not those who are within a same sex relationship. 

Therefore, a surrogate relocating/fleeing one country to another to escape a war as seen in Ukraine, could be faced with a situation where their commissioning parents’ legal status is not recognised and the surrogate and intended parents are both stranded within a country with a child or children that they are unable to bring back to the UK due to the lack of formal documentation and/or legal parentage.

Whichever country an intended parent decides to engage a surrogate to start a family, what many couples are unfortunately still failing to do is obtain the specialist legal advice that is essential both here in the UK and in those foreign countries where the intended parents are recognised at birth. Many intended parents are travelling back to the UK not knowing that they still must apply for a Parental Order (the court order that extinguishes the legal parentage of the surrogate) should they want to reside here and ensure that their parentage of any child born through surrogacy abroad is recognised here in England.

Also, immigration advice is not being obtained at all in some cases in advance of a child being born through surrogacy. Even in those countries where intended parents are being recognised as the legal parents from day one, it is essential that immigration documentation is in order, since the new parents will be travelling on different passports from the child or children and this could result in UK border control refusing entry to them and their new family. 

The need for temporary clearance to have been granted by the Home Office so that the intended parents can then have time to apply for the Parental Order here in the UK and thereafter British citizenship for the child, is essential.

As more and more people embark once again on foreign travel, with many using this to consider starting their families through surrogacy, surely we need to be looking closer to home at reforming our own laws on surrogacy to avoid the major concerns and pitfalls that can come with an overseas surrogacy arrangement and, in doing so, providing the protection that the modern family in 2022 so desperately needs? In 2019, the Law Commission provided a report and consultation paper on the reform of English surrogacy law, which called for greater protection and transparency for both intended parents and surrogates here in England.

Unfortunately, those calls for reform remain at large, unchanged.

About the author
Michael Gregory is a partner at Lowry Legal. He has nearly 20 years’ experience advising high net worth and high-profile clients on a diverse range of family law matters, with a particular emphasis upon financially complex high net worth cases. He also has niche experience in surrogacy and fertility law and how this rapidly changing and developing area of law is impacting the modern family.