Via LearnVest By Cheryl Lock ~
In China, a new nationwide capital gains tax is making it crazy expensive for some couples to stay together, causing a rush to divorce throughout the area.
The capital gains tax, which includes a 20% tax on the profits owners make from selling residential property, was passed as a way to rein in housing prices. The terms allow for couples with two properties to divorce and put each house into one person’s name, then sell them tax-free.
Couples may then remarry, having avoided potentially tens of thousands of dollars in taxes.
The Globe and Mail reported a quote from an official on the Ningbo Daily Newspaper Group website: “They (couples) appear to be in good moods … more than half said frankly that they wanted a divorce for the sake of property.”
Meanwhile, couples applying for divorces in droves were mostly citing “lack of mutual affection” as the reason for their separations.
This isn’t the first time property rules in China have led to widespread divorce. Just three years ago another set of rules including limits on buying second homes sent people running to sign those divorce papers, as well.