Divorce is always going to be tough, and it can also be financially brutal, especially for millennials. Burdened by student debt, high housing costs and unstable wages, many face a harder financial hit than earlier generations.
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Here are five potentially costly mistakes to avoid for millennials looking to protect their finances and ease the transition.
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Letting Emotions Lead the Process
Rage-fueled texts and impulsive ultimatums can become court evidence, dragging out proceedings and driving up legal fees. According to Forbes, the median cost of a divorce in the U.S. is about $7,000, with averages ranging between $15,000 and $20,000, but complicated contested divorces can cost well beyond $100,000.
Vent to friends, not a co-parent or soon-to-be ex, because keeping communication civil speeds negotiations and cuts costs.
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Skipping a Budget for Post-Divorce Life
Going from a two-income household to a single income can cause a financial free fall, especially when many millennials don’t own a home to fall back on. According to Apartment List, only 33% of millennials had made it onto the housing ladder by age 30, compared with 42% of Gen X at the same age.
Without home equity or stable housing costs, divorce can force sudden moves and associated costs, and budgets also need to factor in changes to childcare, health insurance and general daily expenses.
Mishandling Joint Debt
Joint debts like credit cards and loans don’t vanish after divorce, so failing to split or refinance properly can impact credit scores and cause long-term headaches. All shared liabilities need to be addressed as early as possible, with accounts closed or refinanced to avoid surprise bills.
Assuming Joint Assets Will Be Fairly Split
Property division isn’t guaranteed to be equal, since most states follow equitable distribution, which means courts divide assets in a way they consider fair but not necessarily 50-50.
Documenting contributions and keeping detailed financial records help avoid unfair settlements, as without preparation, tens of thousands can disappear in legal battles.
Failing To Update Important Documents
Forgetting to change beneficiaries on life insurance, retirement accounts and wills can leave an ex entitled to assets long after divorce. Overlooking this risks financial disaster for loved ones and future partners.
A rushed, emotional split can ruin more than a relationship. It can undermine financial stability for years. Careful planning and a level-headed approach give the best chance of emerging from divorce with a secure foundation for the next chapter.
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This article originally appeared on GOBankingRates.com: Getting Divorced as a Millennial? Avoid These 5 Expensive Mistakes
