Whenever people are rewarded for being single, there is an incentive for at least some of them to remain single or even fake divorces. The latest evidence comes from China, where couples fake a divorce so that each of them can legally buy more homes, in hopes of cashing in on China's real estate bubble that is being fueled, in part, by the growing wealth in China [h/t Jack].
[G]overnment initiatives to curb a housing bubble are behind the trend. China has raised the down payment for second mortgages, and about 40 Chinese cities have begun to limit apartment purchases to two per family, or one for non-locals. The government has also asked commercial banks to stop offering loans to third-home buyers.
To get around the restrictions, Chinese couples are flocking to so-called fake-certificate companies, which sell phony divorce papers for 300 yuan, or about $45. Getting “divorced” allows couples to register properties under separate names.
Of course the total transaction costs are higher than just $45 [US]. There are also the emotional costs of even faking a divorce. These can arise from the fakery of it all and/or from the uncertainty it might create about the longevity of the marriage. And I'm sure there are others, too.
But the point is: when incentives are provided, people respond to those incentives. An equally important point is that human ingenuity finds creative ways around gubmnt regulations, something we must keep in mind when trying to interfere with market forces.