Faking a divorce to land a second home

Although the practice is not illegal, it's a pity so many couples make a mockery of their marriage for economic gain

Civil affairs offices in Shanghai are witnessing a phenomenon. Instead of the section that handles divorces having a solemn, if not depressing, atmosphere, they now look more like bustling markets. Some branches, which usually receive a dozen or so couples a day, have had to impose a quota to limit the number filing for divorce to ease the workload.

The people waiting in long lines range from elderly couples, married for many years, to newlyweds.

The reason for this sudden surge in couples seeking a divorce is a rumor that Shanghai authorities are to tighten the city's housing policy, which will see couples divorced for less than a year classified as "family" when it comes to buying a property.

According to the existing policy, a family in Shanghai can buy up to two homes, and for that second property they need a 50 percent down payment. By contrast, first-time buyers need only a 20 percent down payment.

The rumor of a rule change has led to couples fearing that buying a second house, let alone a third, could become more difficult, if not impossible. And they know that rising housing prices in first-tier cities such as Shanghai and Beijing mean a house will cost much more if one is forced to wait a year.

Even before the rumor started to spread, couples were bypassing the restriction by getting a divorce and registering the home they owned under one of their names, which meant the other would be seen as a first-time buyer. After purchasing a second home with a lower down payment and preferential interest rate, they then got back together.

Although the practice is not illegal, it's a pity so many couples make a mockery of their marriage for economic gain.

This so-called sham divorce is a vivid reflection of the sizzling hot property market in major Chinese cities, which forces couples to sacrifice morality and family values for monetary gain. The reason many couples indulge in such demeaning behavior is that they believe buying property is the best investment, given the lack of other investment opportunities.

The often double-digit annual growth in housing prices in major cities has created a huge wealth gap between families that bought a home, say, five years ago and those who want to buy one now. The skyrocketing prices have far outpaced the growth in ordinary people's incomes. So buying a house remains the best way to counter inflation and increase a family's assets.

Nevertheless, the strategy employed by such couples is fraught with risks, as a fake divorce could become real. According to media reports, a man in Shanghai took his former wife to court for refusing to remarry him after they divorced to buy a second home.

Still, such reports have not dampened the enthusiasm among some couples to seek a divorce in order to buy a second property, as they believe their bond can stand the test.

This suggests that as long as housing prices continue to soar, the "fake divorce" phenomenon will go on unabated.

The author is an editor at China Daily. Contact the writer at lifangchao@chinadaily.com.cn