The The Legal Philosophy of 'Iwadh as Divorce Compensation: An Analysis of Islamic Economic Principles Perspective

Abstract

This study examines the legal philosophy of 'iwadh (compensation payment) in khulu' divorce from the perspective of Islamic economic principles. 'Iwadh has long been read primarily as a procedural requirement of Islamic family law, causing its economic dimension—relating to distributive justice and the restoration of proprietary rights—to receive insufficient scholarly attention. Employing a normative legal research methodology through conceptual and statutory approaches, this study finds that 'iwadh embodies three foundational maxims of the Islamic economy: Al-Ghunmu bil Ghurmi (proportionality of risk and benefit), 'Adalah fil 'Uqud (justice in contractual relations), and La Dharar wa La Dhirar (prevention of financial harm). Within Indonesian positive law, 'iwadh performs two substantively distinct functions: as a consent-based compensation instrument in pure khulu', and as a legal symbol carrying the value of maslahah mursalah (public interest) in cases of taklik talak (conditional divorce) violation. This dualism reflects Indonesia's judicial ijtihad in contextually integrating maqashid al-shari'ah into the practice of religious court adjudication.