Can Interest Money Received through a Divorce Settlement Be Used for Family Expenses?
Hanafi Fiqh
Answered by Mawlana Ilyas Patel
Question
If one spouse owns a house and, after divorce, wants the other to pay damages even if they didn’t live there, and the case goes to court and the spouse loses, they must pay half the house’s value as part of marital property division. Plus, if there’s a late payment and interest remains, is the interest halal for the family, like for food? I prefer an answer based on the best madhab, if applicable.
Answer
In the Name of Allah, the Most Merciful and Compassionate.
I pray you are in good faith and health. Thank you for your question.
All four schools agree that receiving or consuming riba intentionally is haram. The safest approach is to donate it to charity without expecting a reward.
General Rule of Unlawful Funds
The general rule for disposing of unlawful funds is as follows:
- If the rightful owner is known, the funds must be returned to them.
- If the rightful owner is not known, or if they refuse to accept the funds, they must be disposed of in one of the following ways:
- The funds should be donated to a charitable cause that benefits the public, such as public hospitals, schools, or similar institutions.
- Alternatively, the funds may be given as charity to an individual in need who is entitled to assistance. [al-Fatawa al-Hindiyya; Usmani, Fiqh al-Buyu‘; Taha Karaan, MJC]
And Allah knows best.
[Mawlana] Ilyas Patel
Checked and Approved by Shaykh Faraz Rabbani
Related
- What Can I Do with the Unlawful Money I Earned from Something I Repented Long Ago?
- How Do I Get Rid Of Haram Money?
Mawlana Ilyas Patel has received a traditional education in various countries. He started his schooling in the UK and completed his hifz of the Quran in India. After that, he joined an Islamic seminary in the UK, where he studied secular and Aalimiyya sciences. Later, he traveled to Karachi, Pakistan, and other Middle Eastern countries to further his education. Mawlana has served as an Imam in the Republic of Ireland for several years and taught the Quran and other Islamic sciences to both children and adults. He also worked as a teacher and librarian at a local Islamic seminary in the UK for 12 years. Currently, he resides in the UK with his wife and is interested in reading and gardening.
