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Couples in rush to divorce as house sales tax loomsBy Hu Min, Mar 6, 2013 (accessed 6 March 2013)SHANGHAI saw a rush of people seeking a divorce over the past two days as couples worked out a way to escape the looming 20 percent tax on the profit from house sales.Marriage registrars confirmed that the dramatic surge was triggered by the central government's property curbs announcement last week, with many couples seeking a quick divorce but a remarriage shortly after.Houses bought more than five years ago as a seller's only residence are exempt from tax when resold. But families who own two houses and want to sell one of them are now targets in the government's bid to curb speculation in the property market. If the couples divorce, each spouse will then own a property and one of them can sell the apartment that is tax exempt. After the transaction is complete, the couples get married again.The registration center in Zhabei District saw a record 53 divorces yesterday, its director surnamed Yin said. "We have never seen so many couples seeking a divorce in a single day, and by 2pm the number had already surpassed the previous high of 42 couples," he said.Read the full text article on ShanghaiDaily.comTill taxes do us part: Chinese divorce to skip property tax(Reuters) - At Shanghai's Zhabei District marriage registration centre, officials divorced a record 53 couples in a single day this week - that's about one every five minutes - as couples rushed to untie the knot to avoid tougher tax laws on home sales.There were similar scenes in Wuhan, Nanjing and Ningbo as married couples opted for 'quickie', uncontested divorces - costing just a few yuan - that would allow them to split ownership of their properties and sell without having to pay capital gains tax of as much as 20 percent.Beijing last week signalled it wanted local governments to be tougher in implementing rules to curb property speculation - the tax on gains from selling second homes has been in place for almost two decades but never strictly enforced. Chinese tend to park much of their wealth in real estate as they have few other alternative investment options, and home prices in the biggest cities have risen for 9 straight months.Reckoning that primary residences owned for more than five years will remain tax exempt, some couples hope that divorcing and dividing up real estate assets will allow them to sell properties as individuals, and not pay tax. Once the sale is complete, they can remarry."It's a practical attitude," said Li Li, managing director of International Strategic Group, a real estate consultancy in Shanghai. "It's strange, but policy forces people to do it."While homeowners and prospective buyers await details on how the tightened property rules will be implemented, the official Shanghai Daily quoted one unnamed official at the Yangpu District registration office as saying the rise in divorces was driven by unapologetic tax evaders, including a pregnant woman."I told all of them to come here again for remarriage registration as soon as their transaction is finished," the official told the newspaper.Read the full text article on ReutersWebographyChinese divorce to avoid property tax, South China Morning Post, March  6, 2013. (accessed 6 March 2013)The unexpected result of China’s new policy to curb property price: Higher divorce rate, OffBeat China, March 5, 2013. (accessed 6 March 2013)Couples fake divorce to cheat house rules, Chinadaily.com.cn, December 19, 2012. (accessed 6 March 2013)