Zakah: Family arrangements of a
‘house-zakah’ liability

Q722 :A few years ago I bought a house and
registered it in my wife’s name for the simple reason that I want her
to be independent when I die. As we are living in Saudi Arabia, I have
made arrangements to let it. I paid about about 60 percent of the
rental on renovation, repairs and other maintenance work. I also paid
about 25 percent in taxes and zakah. What I would like to know is
whether I must treat this house as a gift to my wife and let her have
its rental, or should I continue with the present arrangement. There is
no argument between us on this subject, and I wish to know my
obligations as defined by Islam.


A722 : What we have to realize when it netes to an
arrangement like this is that Islamic duties apply to a man and his
wife separately. Either of them may be liable to zakah or may be exempt
from it on the basis of how much each of them owns and whether either
of them has more than the threshold of zakah or not. There may be a
great deal of difference in how much you have to pay out in zakah if
you consider this house to be your own, although it is registered in
your wife’s name. In this case, you have to add the rental to your
other possessions and pay zakah for the full amount. On the other hand,
if you consider it to be your wife’s property, she may be liable to pay
zakah and the rental may not exceed the threshold below which no zakah
is payable. If both of you are liable to pay zakah, there will be no
difference in the amount you will have to pay at the end. I am sure,
however, that this is not your main consideration, but I am pointing it
out for the benefit of other readers. I realize that relations between
man and wife may be so close to allow each of them to look at what is
owned by the other as joint property. That should not make them lose
sight of the fact that they should discharge their Islamic duties as
individuals. Therefore, when it netes to the payment of zakah, each of
them has to assess his or her liability on the basis of what each of
them own. If we were to suppose that this house you have mentioned was
inherited by your wife at the death of one of her relatives, and you
have done all the arrangements you have mentioned, the zakah payable on
its rental should be calculated on the basis of what your wife owns.
Since the case is as you have described, only you and your wife can
determine who of you should receive the rental and pay the zakah. As
far as your arrangements are concerned, there is no question that they
are valid. Many a thoughtful husband take similar steps to ensure that
his wife continues to enjoy decent and respectable living after his
death. Many a wife and a mother will find herself in a very difficult
position if she has to work in order to earn her living, after her
husband has died. She may be unable to work after having spent most of
her life looking after her family. However, when it netes to

arrangements of this sort, family considerations may take precedence
over legal ones. Your actions so far have been those of a person making
every decision on how to utilize a piece of property of his own. That
is all right if it is agreed between yourself and your wife. Since you
have made her the gift already and you have told her that the house is,
from the moment of purchase, her own, then that is how it should
remain. The rental is hers. She may be willing to let you have it all
and spend it the way you like, since you will be looking after your
family. But then you must not forget that what you get of rental is
hers. On the other hand, it may be understood between your wife and
yourself that the house will be hers after your death, but for all
practical purposes it remains yours as long as you are alive. In that
case, you are treading on slippery grounds. What is the difference
between this arrangement and that of assigning the house by will to
your wife? For practical purposes, there is no difference. You should
not forget that you cannot do that in Islam. Your wife is entitled to
have a fixed share of what you leave behind. If you have children, she
receives one eighth of your property, after the payment of any debts
you may have outstanding and the execution of any will you may have
made. If you have no children, she inherits one quarter. You cannot add
to that share this house of yours. If you truly mean the house to be
hers, then she should be the one to receive the rental. After that, she
may, at her own free will, make a gift of the whole of part of that
rental to you. She may spend it on the family, if she so desires. What
is important is to show that we are serious when it netes to financial
transactions so that everyone knows his or her rights and obligations.
You cannot just tell your wife, ” I am giving you this house, ” and
then treat it for all intents and purposes as your own. That sort of
attitude should nete as the result of a decision made freely by your
wife. She may tell you that she is making a certain gift to you which
may be the rental of the house of its usage. But this has to be her own
free decision. If she decides to make such a gift to you, you may
benefit by it as you like. Whatever you and your wife decide in this
case, you have to treat every step seriously and take your decisions
wisely. It is wrong to take things for granted and behave as if you can
make her a nominal gift and continue to treat it as your own.


Our Dialogue ( Source : Arab News – Jeddah )