A direct placement adoption in Michigan is one where the birth parents choose the adoptive family themselves and hand the child directly to them, rather than going through an agency that matches children with approved applicants. The process is set by the Michigan Adoption Code and runs through the family division of circuit court. It requires a home study of the adoptive parents, formal consent from the birth parents given in open court, a court-ordered investigation, a period of supervision, and a finalization hearing. Each step has strict requirements, and missing one can unwind the adoption.
What Counts as a Direct Placement
Under the Adoption Code, a direct placement happens when a parent or guardian picks an adoptive parent and transfers physical custody of the child to that person. Stepparent adoptions do not qualify, and neither do adoptions by relatives within the fifth degree by marriage, blood, or adoption. Those follow separate procedures. The defining feature is that the birth parents, not an agency, select the family.
That selection changes the legal mechanics. In an agency adoption, the birth parents sign a release handing custody to the agency. In a direct placement, they instead execute a consent to the adoption in front of a judge, and the child goes straight to the adoptive parents’ home. The rules on how that consent is given, how it can be challenged, and what the court investigates all follow the direct placement track.
Who Can Adopt
Michigan’s eligibility rules are not unusual. A married person must file jointly with their spouse unless the court waives that requirement for good cause or because waiving it serves the child’s best interests.1Michigan Legislature. Michigan Compiled Laws 710.24 – Petition for Adoption; Filing; Jurisdiction; Verification; Contents An unmarried person can petition alone. The real screening comes later, during the home study.
The Preplacement Assessment
Before a child can be placed, the prospective adoptive parents need a preplacement assessment, usually called a home study. In a direct placement, the adoptive parents request it from a licensed child placing agency.2Michigan Legislature. Michigan Code 710.23f – Preplacement Assessment The agency conducts interviews, visits the home, and talks with references. It covers:
- Financial stability, through a current report of income, property, and obligations.
- Criminal history, through records from the Michigan State Police and the FBI. The agency can request these on the applicants’ behalf with written authorization.
- Home environment, lifestyle, and emotional readiness, assessed in person.
The assessment has to end with a finding that the applicant is suitable to be a parent, and that finding is good for one year. When the adoption petition is filed, a copy of the assessment, completed or updated within the previous year, must be attached, along with a statement listing any other assessments completed or started but not finished.1Michigan Legislature. Michigan Compiled Laws 710.24 – Petition for Adoption; Filing; Jurisdiction; Verification; Contents A prior conviction for child abuse or neglect will almost always produce a negative finding.
How Birth Parent Consent Works
Consent is how the birth parents legally agree to the adoption, and it is where most direct placements either lock in or come apart.
Michigan requires consent to be executed before the judge handling the adoption, or before another family court judge or juvenile court referee the court directs.3Michigan Legislature. Michigan Compiled Laws 710.44 – Consent to Adoption; Separate Instrument; Persons The court makes a verbatim record of the testimony around the consent, so if the consent is later challenged, there is a documented proceeding to review. A birth parent in the armed services or in prison may execute consent before anyone authorized to administer oaths. Consent given in another state or country has to comply with that jurisdiction’s laws or Michigan’s. The consent hearing must be held within seven days of being requested.
Because the consent happens on the record in open court, it carries weight from the moment it is given. Challenging it on grounds like fraud or duress is possible, but the courtroom setting and verbatim transcript make such challenges hard to sustain. Birth parents also have the right to counseling to help them work through the decision. That support is partly about ensuring the consent is informed and voluntary, and partly about protecting the adoptive parents from a later claim of coercion.
Birth Father’s Rights
This is where direct placements most often get complicated. A birth father whose identity is known must receive notice of the adoption and an opportunity to assert his rights. If he was not properly served, the court must adjourn until he is.4Michigan Judicial Institute. Terminating Rights of Father Without Release or Consent Checklist The notice has to tell him that failing to appear at the hearing counts as a denial of interest in custody and will result in his parental rights being terminated.
If he does appear and asks for custody, the court weighs his fitness, his ability to care for the child, and whether custody with him serves the child’s best interests. A father who has not had a custodial relationship with the child, supported the mother during pregnancy, or cared for the mother or child after birth faces a difficult case.
The law also provides routes to terminate a birth father’s rights without his consent. These include a filed disclaimer of paternity, a verified denial of interest in custody, proper notice of intent to consent given at least 30 days before the expected due date with no filed intent to claim paternity in response, or the father being unlocatable after reasonable effort and having shown no interest in or support for the child for at least 90 days.4Michigan Judicial Institute. Terminating Rights of Father Without Release or Consent Checklist Courts scrutinize whether every required step regarding the birth father was documented.
Filing the Petition
The adoption petition is filed in the family division of circuit court, either in the county where the adoptive parents live or where the child is located.1Michigan Legislature. Michigan Compiled Laws 710.24 – Petition for Adoption; Filing; Jurisdiction; Verification; Contents Married petitioners file together unless the court excuses the other spouse. The petition includes the home study with its suitability finding, copies of any other assessments completed, and a sworn statement about any assessments started but not finished. Birth parents are responsible for providing accurate medical and social history information, which becomes part of the court record and gives the adoptive parents a complete picture of the child’s health and family background.
Investigation and Supervision After Placement
Once the petition is filed, the court orders a full investigation, which can be done by a court employee, a licensed child placing agency, or the Michigan Department of Health and Human Services. The court can rely on the earlier home study but can also require more investigation.5Michigan Courts. Investigative Report This investigation is a different question from the home study. The home study asked whether the adoptive parents are suitable in general. This one asks whether this specific placement serves this specific child’s best interests, and looks at the child’s family background and the reasons the child was placed away from the birth parents.
Between placement and finalization, the child must be supervised. In a direct placement, the same agency that handled the investigation also supervises, unless the court assigns a different one.6Michigan Courts. Direct Placement Adoption Supervision means home visits to see how the child is adjusting and whether the placement is working. Expect regular contact with the agency throughout.
The Finalization Hearing
After the investigation report comes in, the judge reviews it and holds a hearing on whether to grant the adoption. The court must be satisfied of two things: that the consent is genuine and was given by someone with legal authority, and that the adoption serves the child’s best interests.7Michigan Legislature. Michigan Code 710.51 – Order Terminating Rights; Approval of Placement The judge has to enter an order within 14 days of receiving the report, with narrow exceptions set out in the statute.
If the court is satisfied, it enters an order terminating the birth parents’ rights and approving the placement. That order, the final decree of adoption, gives the adoptive parents full legal parental rights and responsibilities. The child becomes their legal heir, and a new birth certificate is issued with the adoptive parents’ names.
What Adoptive Parents Can Pay For
Michigan tightly regulates payments in a direct placement. Every payment made in connection with the adoption, with date, amount, recipient, and purpose, has to be accounted for and submitted to the court.8Michigan Legislature. Michigan Code 710.54 – Accounting of Fees and Expenses Every dollar is subject to judicial review.
Adoptive parents can generally pay for the birth mother’s reasonable medical expenses related to pregnancy and delivery, counseling costs, and legal fees. Living expenses for the birth mother are allowed, but only through six weeks after the child’s birth. Payments that look like they are buying consent, or that go beyond these categories, can trigger serious legal problems. The court reviews the accounting specifically to catch improper inducements. Keep meticulous records and have an attorney review payments before they are made.
If the Adoption Crosses State Lines
When a direct placement moves a child from one state to another, the Interstate Compact on the Placement of Children applies. No child may be placed across state lines until both the sending state’s and the receiving state’s ICPC offices have reviewed and approved the placement. A packet with the child’s social, medical, and educational history, along with information about the prospective adoptive parents, goes from the sending state to the receiving state. The receiving state does its own home study, including background checks and a home inspection, and then approves or denies the placement. Federal law requires the home study and written report within 60 calendar days, though the overall decision can take longer. An ICPC approval expires if the child is not placed within six months. Failing to comply with the ICPC can create jurisdiction problems that threaten the whole adoption, so if either side lives outside Michigan, address this early.
If the Child Has Tribal Ties
The federal Indian Child Welfare Act applies to any adoption of a child who is a member of, or eligible for membership in, a federally recognized Indian tribe.9Office of the Law Revision Counsel. 25 USC 1901 – Congressional Findings When ICWA applies, the tribe must be notified and has the right to intervene. ICWA sets placement preferences for Indian children: first a member of the child’s extended family, then other members of the child’s tribe, then other Indian families. A tribe can set its own order of preference by resolution, and the court will follow it. The court also gives weight to a birth parent’s preference or request for anonymity.
ICWA cases carry heightened evidentiary and procedural requirements. Failure to comply has been grounds for overturning finalized adoptions, sometimes years later. If there is any possibility the child has Indian heritage, raise it early and get specialized legal help.
Federal Adoption Tax Credit
Families who finalize an adoption in 2026 can claim a federal tax credit of up to $17,670 per child for qualified adoption expenses, including court costs, attorney fees, and travel directly related to the adoption.10Internal Revenue Service. Adoption Credit The credit phases out for taxpayers with modified adjusted gross income above $265,080 and disappears entirely at $305,080.
Beginning with tax year 2025, part of the credit became refundable, so families whose tax liability is less than the full credit can receive some of it as a cash refund rather than only a reduction in taxes owed. The refundable portion is capped at $5,120 for 2026 adoptions. Any non-refundable portion that exceeds tax liability can be carried forward for up to five years. Keep records of qualifying expenses as you go, since reconstructing them later is much harder than tracking them in real time.