Should a husband divorce his rebellious wife who left their home with her belongings without his knowledge and refused to return unless he provides a separate dwelling, thus breaching the terms of their marriage contract, or should he let her seek a Khul’ divorce and return his mahr to him?

It is the wife's right to have independent housing, and she is not obligated to live with her husband's family. She does not have a choice regarding the location of the housing as long as it does not cause harm. Her leaving her home without her husband's permission constitutes nushuz (disobedience). If the wife insists on divorce, the husband may respond to her request with khul' (divorce at the wife's instance, usually with compensation). A khul' divorce is ba'in (irrevocable) and does not necessitate nafaqat al-'iddah (maintenance during the waiting period) except for a pregnant woman, nor does she receive mut'ah (consolatory gift), as she is the one who chose the divorce.