Millennial Divorce Is Here — And It’s Insanely Expensive

Why breaking up is costlier than ever for a generation already stretched thin.

For decades, divorce has been portrayed as emotionally messy but financially manageable—at least for couples who hadn’t accumulated significant wealth. But the script has flipped for Millennials, who are entering the divorce phase in a drastically different economic reality than Gen X or Baby Boomers. The result? Millennial divorce is here, and it’s uniquely, unexpectedly expensive.

A New Kind of Financial Puzzle

Traditionally, wealthier couples had more complex divorces due to the sheer volume of assets involved. But Millennials are breaking up with fewer assets and still facing eye-watering legal and logistical costs. Why? Because while their net worth might be low, the value—and burden—of what they do have is unusually high.

Student loans, credit card debt, rising rent, and home mortgages at historic highs have created a perfect storm. Many Millennial couples co-own high-cost assets like homes or cars, but splitting them is complicated when both parties are also buried in debt and neither can afford to buy the other out.

Debt: The Invisible Asset

Unlike previous generations, Millennials often walk into marriage already deep in debt—especially student debt. According to the Education Data Initiative, the average federal student loan balance in 2024 was around $37,000 per borrower. For two-college-grad households, that’s easily $70,000 or more of joint debt to divide during divorce.

Worse, debt isn’t as neatly splittable as property. Some loans are under one spouse’s name but were used for joint expenses. Others were co-signed. Credit card debt, often racked up during inflationary periods, becomes a hotbed of contention when no one’s quite sure who spent what.

High-Cost Assets, Low Net Worth

Many Millennials entered adulthood during or shortly after the 2008 financial crisis, then got hit again with COVID-era job losses and housing market spikes. As a result, they’re often asset-rich but cash-poor. A jointly owned home bought at pandemic-high prices may now come with equity—but refinancing or selling isn’t simple when interest rates have doubled and neither spouse can afford new housing alone.

This situation—dividing expensive assets with little cash flexibility—isn’t just financially complex, it’s emotionally draining. For many Millennials, keeping the house means taking on even more debt, while selling often means walking away with very little after fees and taxes.

Legal Fees Stack Up Fast

Millennial divorces may not involve investment portfolios or luxury assets, but that doesn’t mean they’re cheap. In fact, the complexity of splitting debt, negotiating parenting time in dual-income households, and managing cash-flow-based settlements drives up legal fees.

Even amicable divorces can run up costs quickly, especially when mediation fails to resolve sticky financial questions like:

• Who pays off the student loans?
• How is a jointly owned car handled when only one spouse drives it?
• What happens to the lease or mortgage if one party moves out?

These gray areas demand legal expertise—and that doesn’t come cheap.

The Emotional Cost of Financial Instability

Beyond the balance sheets and legal proceedings, Millennial divorce carries an emotional weight that’s tied to financial instability. Many Millennials delayed marriage in hopes of achieving financial security, only to find that their marriages are now ending before that stability ever arrived.

There’s also less of a safety net. Compared to Boomers or Gen Xers, Millennials are less likely to own multiple properties, have savings, or rely on parental financial support. The result is that divorce often means starting from scratch—both emotionally and economically.

How a Lawyer Can Help Navigate the Chaos

Because Millennial divorces are often more complicated than they seem, having the right legal guidance is essential. A family law attorney can help:

• Unpack complex debt structures
• Ensure fair asset and liability division
• Navigate housing decisions with long-term financial impact
• Create parenting agreements that work for dual-career households

In short, legal support isn’t a luxury in Millennial divorce—it’s a lifeline.