Khulʿ (Arabic: خلع [xʊlʕ]), also called khula, is a procedure based on traditional jurisprudence, that allows a Muslim woman to initiate a divorce by returning the mahr and everything she received from him during their life together, or without returning anything, as agreed by the spouses or judge's decree, depending on the circumstances.

From the "Sahih International" translation of the Qur'an.

Divorce is twice. Then, either keep [her] in an acceptable manner or release [her] with good treatment. And it is not lawful for you to take anything of what you have given them unless both fear that they will not be able to keep [within] the limits of Allah. But if you fear that they will not keep [within] the limits of Allah, then there is no blame upon either of them concerning that by which she ransoms herself. These are the limits of Allah, so do not transgress them. And whoever transgresses the limits of Allah—it is those who are the wrongdoers.

And if a woman fears from her husband contempt or evasion, there is no sin upon them if they make terms of settlement between them—and settlement is best. And present in [human] souls is stinginess. But if you do good and fear Allah—then indeed Allah is ever Acquainted, with what you do.

The most well known story that references khul' and serves as the basis for legal interpretations is the story of Jamilah, the wife of Thabit ibn Qays:

Narrated Ibn 'Abbas: The wife of Thabit bin Qais came to the Prophet and said, "O Allah's Apostle! I do not blame Thabit for defects in his character or his religion, but I, being a Muslim, dislike to behave in un-Islamic manner if I remain with him." On that Allah's Apostle said to her, "Will you give back the garden which your husband has given you as Mahr?" She said, "Yes." Then the Prophet ordered to Thabit, "O Thabit! Accept your garden, and divorce her once."

Most Islamic schools of law agree that the husband is not entitled to more than the initial amount of dower (mahr) given to the wife. However, some interpretations suggest that the husband is entitled a greater compensation, while other interpretations suggest that the husband is not entitled to any compensation. According to some interpretations, khulʿ demands that the mahr already paid be returned along with any wedding gifts. According to majority of imams of fiqh this law only to apply if there is no fault on the husband. Men sometimes prefer and pressure their wives to demand a khulʿ instead of the husband pronouncing a talaq so that the husband can demand the return of the mahr. Another scenario that rarely arises in khulʿ is that the husband will request an unreasonable financial compensation. This can effectively constrain her from seeking khulʿ because they have no means to support themselves financially with the loss of their mahr and other wedding “gifts.”

Most schools agree that husband's agreement is essential to the granting of divorce, unless there are extenuating circumstances. Only few schools allow a judge to give a no fault divorce without the husband's consent. The husband does not have to consent if there are valid grounds for divorce, such as cruelty or impotence undisclosed at time of marriage. In addition, if a husband cannot provide his wife with basic marital obligations, such as shelter or maintenance, a woman may be granted khulʿ. If the woman is underage, then consent must be given by the guardian of her property. The details of laws of khulʿ in particular cannot be found in the Qur'an directly, so a Sharia court judge must refer to Hadith and precedent in deciding what are valid reasons for divorce.