A composition that is entered into by joint heirs to property, whereby some of them may waive their shares in return for some type of payment. In other words, the heirs agree to give one or more of them an amount of money or property to relinquish his share of the inherited property. If the property given is not from the estate itself, the agreement amounts to a sale contract, while if it is part of the estate, it is referred to as a contract of division or partition (taqseem). If the amount given is smaller than the deserved share of the inheritance, the deal is, then, a form of gift (hibah) from the relinquisher.

Takharuj is also used in contracts such as mudarabah and musharakah (and related investment accounts and pools) where exiting partners relieve other partners as to their share in any undistributed profits. In this sense, Takharuj is the execution of the exit scenario by way of mubara’ah (mutual relief from obligations).

Linguistically, takharuj (تخارج) is derived from the verb akhraja, i.e., to take out or put out or make an exit for.