Couples in one Chinese city are increasingly faking divorce to cheat property purchase restrictions, with some pretending to separate seven times to buy a new house, according to People’s Daily.
The trend has emerged in Shenyang in Northeastern China after home purchase restrictions were introduced in 2011 to limit the number of houses that can be purchased and tax incentives
One rule stated couples in Shenyang who already owned one property, including the buyer, their spouse and young children, could only purchase one property within the 2nd ring road of the city.
The practice of faking divorce has become widespread with many reportedly admitting the sole purpose was just to purchase a property with lower taxes.
Professor Jin Yihong at Nanjing Normal University said the government should disassociate policies with marriage and restrict divorcees dividing their properties in the short term. She also suggested a personal credit system to record fake marriages.
Attorneys also warned fake divorces could cause more legal disputes later if the couple divorced for real.
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