A method for managing prefixes of a mobile node (MN) includes receiving a servable prefix and a cost associated with the servable prefix from a first router serving the MN, wherein the servable prefix is one of a plurality of prefixes assigned to the MN that is servable by the first router, deciding whether to release the servable prefix through the first router in accordance with the cost associated with the servable prefix, and releasing the servable prefix when the MN has decided to release the servable prefix.