New York’s Child-Parent Security Act took effect in 2021, making compensated gestational surrogacy legal and setting up a clear legal framework for how these deals must work. A well-drafted surrogacy agreement sits at the heart of that framework, and understanding what terms you can include helps shape your journey.
Mapping out the financial terms
One of the first things your surrogacy contract will address is money, and the financial picture goes well beyond the carrier’s base compensation. For first-time intended parents, the range of expenses can come as a surprise.
Under New York law, you must cover the surrogate’s health insurance, copayments, deductibles and other medical expenses related to the pregnancy. This responsibility continues for up to 12 months after the child is born.
You must also secure a life insurance policy for the surrogate with at least a $750,000 benefit. The policy must take effect before the carrier begins any medication related to the pregnancy and remain active for 12 months after childbirth. This requirement helps protect the surrogate and their family throughout the process and during recovery.
Defining medical decision-making authority
Your agreement will likely cover procedures such as how many embryo transfers both parties are willing to try, the number of embryos go in at one time and what happens if a multiple pregnancy occurs. It may also touch on prenatal care, lifestyle choices during pregnancy and how updates from medical providers will be shared.
One of the more sensitive topics involves selective reduction or termination. Even if the contract outlines preferences on this issue, New York law recognizes the carrier’s bodily autonomy.
Establishing parental rights
Under the current law, intended parents can seek a pre-birth order of parentage. This means a court can name you the legal parent before your child is born, though the order only takes effect at the moment of birth.
Your agreement should also confirm that the carrier and their spouse, if any, agree they hold no parental rights to the child. New York law also requires you to include a provision where intended parents agree to execute a will designating a guardian for the child prior to the embryo transfer.