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Property Tax Loophole Leads to Divorce Increase in China

Cindy Pham Posted in Honoring Families

According to The New York Timesdivorce filings in China have surged recently due to married couples’ desire to avoid the country’s new 20 percent capital gains tax. Because the tax only applies to second home sales, many couples reasoned that a divorce would enable them to claim that each had only one home and evade paying the tax. The couples could then remarry after the sale of one of their homes.

Cindy Pham is a third year law student at the University of Denver Sturm College of Law and contributes to IAALS Online. Please direct inquiries about this post to iaals@du.edu.