By Erik Crouch
Image credit: @FortInBras
Following a new tax on family’s second homes, residents in Minhang district have begun divorcing into riches. The new capital gains tax affects families who own more than one house; if a husband and wife split up and each keeps one home, the tax is avoided. This loophole has been exploited so much that marriage registration offices have begun posting signs reading, “Beware the risks arising from the housing market. Have second thoughts before deciding to get divorced.”
The Minhang marriage registration office, which handles these property-provoked post-nuptials, has essentially given up on trying to prevent the divorces. SCMP reports:
An official at the registration office admitted that the number of divorces had risen sharply since the central government announced the tax.
“We don’t bother to find out the reasons for the divorces,” she said. “Our job is to complete the divorce registrations as long as the documents they provide are complete and accurate.”
Residents interviewed about the divorces stated that they still plan on living as united families, just off the books. If Minhang fixes this tax loophole, perhaps it will see a boom of divorced roommates suddenly falling back into love