MARRIAGE SETTLEMENTS (MS)

: regime of absolute community (ACP)

 In the MS, future spouses : complete separation of property (CSP)
may agree upon REGIME of : conjugal partnership of gains (CPG)
Definition
: OR any other regime
[75]
 In Absence of MS OR When regime agreed upon is VOID
= system of ACP as established in FC shall GOVERN

 In order for any modification to the MS may be VALID

= must be BEFORE THE CELEBRATION of the marriage

Modifications
to MS [76] = SUBJECT to provisions of Articles:
: 66 (Reconcialiation after leg sep) : 135 (Causes for Judicial Separation of Prop)
: 67 (Agreement to revive former PR) : 136 (Petition for Voluntary Dissolution of Prop)
: 128 (Sp abandons the other w/o just cause)

MS and
= IN WRITING = Shall NOT PREJUDICE THIRD PERSONS
modification
= SIGNED by the parties : UNLESS registered in local civil registry where
thereof shall
= Executed BEFORE THE the MC is recorded as well as in the proper
be… (format)
CELEBRATION of marriage registries of properties
[77]
MARRIAGE SETTLEMENTS (MS)

Individuals who execute MS

= 18 to 21 YO
= May also execute MS, BUT shall be valid
“Minor who acc to : ONLY IF persons designated to give consent to marr in ART 14
law may contract : ARE MADE PARTIES TO THE AGREEMENT, subject to provisions of FC Title IX
marriage” [78] [ART 14] In the ORDER mentioned
1) father 3) surviving parent or guardian
2) mother 4) persons having legal charge of them
 For validity of any MS executed by such person
Person sentenced = indispensable for the guardian appointed by a competent court to be made a
with CIVIL party thereto
INTERDICTION WHAT IS CIVIL INTERDICTION?
= an accessory penalty
OR = shall deprive the offender during the time of his sentence
: of the rights of parental authority,
: or guardianship, either as to the person or property of any ward,
who is subject to : of marital authority,
any OTHER : of the right to manage his property
DISABILITY [79] : and of the right to dispose of such property by any act or any conveyance
inter vivos. [RPC ART 34]
MARRIAGE SETTLEMENTS (MS)

Stipulations to the MS

 In absence of contrary stipulation in MS, PR of sps shall be governed by Phil laws

= REGARDLESS of the place of marr celebration AND their residence.

(1) Where both spouses are aliens;

THIS (2) With respect to the extrinsic validity of contracts affecting
[80] RULE = property not situated in the Philippines and
SHALL = executed in the country where the property is located; and
NOT
APPLY: (3) With respect to the extrinsic validity of
= contracts entered into in the Philippines
= but affecting property situated in a foreign country whose laws require
different formalities for its extrinsic validity.

 Everything stipulated in the settlements or contracts referred to in the preceding articles in

consideration of a future marriage
= including donations between the prospective spouses made therein
[81] = rendered VOID IF marriage does not take place

HOWEVER, stipulations that do NOT depend upon the celebration of the marriages shall be valid
DONATIONS BY REASON OF MARRIAGE (DRM)

Donation is an act of liberality whereby a person disposes

gratuitously of a thing or right in favor of another, who accepts it
[CC Art 725]

Donations BY REASON OF Marriage

a) those which are made before : governed by the rules on
celebration of marriage ordinary donations (Title III of
b) in consideration of the same Book III CC)
c) and in favor of one or both of = insofar as they are not
the future spouses modified by the following
[82] articles [83]

Donations of
Governed by the provisions on testamentary
future
succession and the formalities of wills.
property [84]
 In case of foreclosure of encumbrance and…
DRM of prop = property is sold for
= property is sold for
subject to less than the total
more than the total
encumbrances amount of the obli
amount of said obli,
shall be valid secured,
[85]
= donee shall not be = donee shall be
liable for deficiency entitled to excess

DRM, When Void

They cannot
a) IF future sps agree donate to each
Any excess shall
upon a regime other in their MS
be considered
other than ACP… more than 1/5th of
void.
[84] their present
property
DONATIONS BY REASON OF MARRIAGE (DRM)

b) Every donation or Prohibition shall EXCEPTION:

grant of gratuitous also apply to Moderate gifts
advantage, direct or persons living which the spouses
indirect, bet the sps together as may give each
during the marriage husband and other on the
shall be void wife without a occasion of any
[87] valid marriage family rejoicing

DRM may be REVOKED by DONOR in ff cases… [86]

If the marriage is not
= EXCEPT donations made in
celebrated
1 the MS, which shall be
OR judicially declared void governed by Article 81
ab initio
Marr takes place w/o consent of parents or guardian, as
2
required by law
3 Marriage is annulled, AND donee acted in bad faith
4 Upon legal separation, the donee being the guilty spouse;
If it is with a resolutory condition and the condition is
5
complied with
When the donee has committed an act of ingratitude as
specified by the provisions of CC on donations in general.
WHAT ARE ACTS OF INGRATITUDE? [CC Art 765]
(1) If the donee should commit some offense against the person, the
honor or the property of the donor, or of his wife or children under
his parental authority;
6
(2) If the donee imputes to the donor any criminal offense, or any act
involving moral turpitude, even though he should prove it, unless
the crime or the act has been committed against the donee
himself, his wife or children under his authority;
(3) If he unduly refuses him support when the donee is legally or
morally bound to give support to the donor.
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)
GENERAL PROVISIONS
When does  at precise moment marr is celebrated
ACP = Any stipulation, express or implied, for
commence? the commencement of the community
[88] regime at any other time shall be VOID
Governing Provisions ON CO-OWNERSHIP shall apply
Provisions to ACP bet. sps in all matters not provided
[90] for in this Chapter

DURING the marriage: No waiver of rights,

shares and effects of the ACP can be made

When the waiver takes

place upon a JSP, OR after
the marriage has been
dissolved or annulled
 the same shall appear in
a public instrument and
Waivers = shall be recorded as
[89] provided in ART 77

EXCEPT in  CREDITORS of the sp

case of who made such waiver
judicial = may petition the
separation court to rescind the
of property waiver
(JSP) = to the extent of the
amount sufficient to
cover the amount of
their credits
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)

WHAT CONSTITUTES ACP

at the time of the celebration of the
ALL the
marriage
property
[91] owned OR acquired thereafter
by the
UNLESS otherwise provided in this
spouses
Chapter or in the MS
PRESUMPTION
Property acquired during the marriage is
[93] PRESUMED to belong to the community
 UNLESS it is proved that it is one of those
excluded therefrom

EXCLUDED FROM THE ACP [92]

Property acquired during the marriage by gratuitous
title by either spouse
 also fruits and income thereof, if any
1
 UNLESS: expressly provided by the donor,
testator or grantor that they shall form part of
ACP

Property for personal and exclusive use of either sp

2
 HOWEVER: jewelry shall form part of ACP

Property acquired before the marriage by either spouse

3 who has legitimate descendants by a former marriage
 also fruits and income thereof, if any.
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)

ACP SHALL BE LIABLE FOR: [94]

IF the ACP is insufficient to cover the following liabilities…

 EXCEPT THOSE UNDER PAR (9)
 spouses shall be solidarily liable for the unpaid balance with
their separate properties

 spouses
 their common children
SUPPORT  and legitimate children of either spouse
1
of… HOWEVER
support of illegitimate children shall be
governed by the FC provisions on Support

Expenses to enable either spouse to commence/ complete

6  a professional or vocational course
 or other activity for self-improvement

The value of what is donated or promised by both spouses

 in favor of their common legitimate children
8  for the EXCLUSIVE PURPOSE: commencing or
completing a professional or vocational course OR
other activity for self-improvement
All taxes, liens, charges
4 and expenses (including upon the community property
major or minor repairs)
All taxes and expenses upon the separate property of
5 for mere preservation either spouse used by the
made during marriage family

Expenses of litigation between the spouses

10
 UNLESS the suit is found to be groundless
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)
ACP SHALL BE LIABLE FOR: [94]
 by the designated
administrator-spouse for the
ALL debts and obligations benefit of the community
2 contracted during the  by both spouses
marriage
 by one spouse with the
consent of the other
Debts and obligations
contracted by either spouse to the extent that the family
3
without the consent of the may have been benefited
other

Ante-nuptial
insofar as they have redounded to the
7 debts of either
benefit of the family
spouse
Ante-nuptial
 the support of illegitimate children of
debts of either
either spouse
spouse other than
those falling
under par (7) (did  liabilities incurred by either spouse by
NOT benefit family) reason of a crime or a quasi-delict
9
 in case of absence OR insufficiency of the exclusive property
of the debtor-spouse
 the payment of which shall be considered as advances
 to be deducted from the share of the debtor-spouse upon
liquidation of ACP

During marr: in any game of chance, betting, sweepstakes, or any

other kind of GAMBLING, WON PERMITTED OR PROHIBITED BY LAW
Whatever may be lost:
[95]
= shall be borne by the loser BUT any winnings therefrom:
= and shall not be charged to = shall form part of the ACP
the ACP
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)
ADMINISTRATION OF THE ACP [96]
Administration and enjoyment of the ACP shall belong to both
spouses JOINTLY
H’s decision shall prevail; subject to recourse to
the court by W for proper remedy
In case of
 must be availed of within 5 yrs from the
disagreement
date of the contract implementing such
decision
Other spouse may assume SOLE powers of
administration
 Does not include powers of disposition or
IF one sp is encumbrance... WITHOUT:
incapacitated 1) authority of the court OR
2) the written consent of the other sp.
OR  In the absence of authority or consent:
disposition or encumbrance shall be VOID
otherwise
unable to HOWEVER
participate in  the transaction shall be construed as a
the admin of continuing offer on the part of the consenting
the common spouse and the third person, AND
properties  may be perfected as a binding contract upon:
1) the acceptance by the other spouse OR
2) authorization by the court before the offer is
withdrawn by either or both offerors
DISPOSAL OF THE ACP
1) Either spouse may dispose by will of his or her interest in the
community property [97]
2) Neither spouse may donate any community property without
the consent of the other [98]
 HOWEVER: either sp may, without the consent of the other, make
moderate donations from the ACP for charity or on occasions of
family rejoicing or family distress. [98]
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)
DISSOLUTION OF THE ACP

(1) Upon the death of either spouse;

(2) When there is a decree of legal separation;
The ACP
(3) When the marriage is annulled or declared
terminates:
void; OR
[99]
(4) In case of judicial separation of property
during the marriage under ARTS 134 to 138.

SEPARATION IN FACT between husband and wife shall NOT

affect the regime of ACP EXCEPT THAT: [100]
ABANDONING/ LEAVING SP
 Sp who leaves conjugal
home OR refuses to live
therein, w/o just cause shall
not have the right to be
supported
 When the consent of one
sp to any transaction of the
other is required by law,
judicial authorization shall
be obtained in a summary
proceeding
PRESENT/ AGGRIEVED SP
 Sp present shall, upon
proper petition in a
summary proceeding be
given judicial authority
to:
1) administer or
encumber any specific
separate property of
the other sp
AND
2) use the fruits or
proceeds thereof to
satisfy the latter's
share.

In absence of sufficient community property, the separate

property of both sps shall be solidarily liable for the support
of the family.
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)
ABANDONMENT [101]
If a spouse… Aggrieved spouse may petition
1) without just the court
cause 1) for receivership
abandons the 2) for judicial separation of
other property OR
OR 3) or authority to be the sole
2) fails to administrator of the ACP
comply with
his/her  Subject to such
obligations to precautionary conditions as
the family the court may impose.

“ABANDON”: when spouse left the conjugal

dwelling without intention of
returning, he/she is deemed to have
abandoned the other
 spouse prima facie presumed to have no
intention of returning to the conjugal dwelling
WHEN:
(1) who has left the conjugal dwelling for a
period of 3 mos OR
(2) has failed w/in same period to give any info
as to his whereabouts

“OBLIGATIONS TO THE FAMILY”: marital, parental

or property relations.
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)

LIQUIDATION OF THE ACP [102]

Upon dissolution of the absolute community regime, the following procedure shall apply:
(1) An inventory shall be prepared, LISTING SEPARATELY
a. all the properties of the ACP and
b. the exclusive properties of each spouse

In case of insufficiency of said assets…

(2) The debts and obligations of the ACP shall be
paid out of its assets.
(4) The net remainder of the properties of the
ACP shall constitute its net assets, which shall
be divided equally between husband and
wife
a. UNLESS a different proportion/ division
was agreed upon in the MS
b. OR UNLESS there has been a voluntary
waiver of such share provided in FC
Spouses shall be solidarily liable for
the unpaid balance with their separate
properties in acc to ART 94, par 2
(3) Whatever remains of the exclusive
properties of the spouses shall
thereafter be delivered to each of
them
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)
TO COMPUTE Net Profits Subject to Forfeiture
(Art 43, No 2 AND Art 63 No 2):
NPSF = ACP mkt value (dissolution) – ACP mkt value
(marr celeb)
* Art 43, No 2: sp disappeared and sp present
contracted subsequent marr in bad faith
* Art 63, No 2: offending sp in a legal
separation

(5) The presumptive legitimes of the common children shall be delivered upon partition, in
accordance with ART 51

(6) In the partition of the properties, the conjugal dwelling and the lot on which it is
situated…
 shall be adjudicated to the spouse with whom the majority of the common children
choose to remain. [UNLESS otherwise agreed upon by the parties]
 Children below the age of seven years are deemed to have chosen the mother,
UNLESS the court has decided otherwise.
 In case there in no such majority, the court shall decide, taking into consideration the
best interests of said children.
SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY (ACP)

Upon the termination of the marriage by death [103]

ACP shall be liquidated in the same
Should the surviving
proceeding for the settlement of the
spouse contract a
estate of the deceased
subsequent marriage
If no judicial settlement proceeding is without compliance
instituted with the foregoing
 surviving spouse shall liquidate requirements
ACP either judicially OR extra-  a mandatory
judicially within six months from regime of
the death of the deceased spouse complete
separation of
If upon the lapse of the six months property shall
period, no liquidation is made govern the
 any disposition or encumbrance property relations
involving ACP the terminated of the subsequent
marriage shall be VOID marriage.

When the ACP of two or more marriages contracted by the

same person before the effectivity of FC is liquidated
simultaneously [104]

the respective capital, fruits and income of each community

shall be determined
 upon such proof as may be considered according to the
rules of evidence
In case of doubt as to which community the existing properties
belong,
 the same shall be divided between the different
communities in PROPORTION to the CAPITAL and
DURATION of each
SYSTEM OF CONJUGAL PARTNERSHIP OF GAINS (CPG)
GENERAL PROVISIONS
Under the CPG  the proceeds, products,
regime, the fruits and income FROM
Definition husband and their separate properties
[106] wife place in a  and those acquired by
COMMON either or both sps through
FUND their efforts or by chance
Rules in ARTS 88 and 89 shall ALSO apply to CPG [107]
When does  at precise moment marr is celebrated
CPG = Any stipulation, express or implied, for the
commence? commencement of the conjugal regime at
[88] any other time shall be VOID
DURING the marriage: No waiver of rights,
shares and effects of the CPG can be made

When the waiver takes place

upon a JSP, OR after the
marriage has been dissolved
or annulled
 the same shall appear in a
Waivers public instrument and
[89] = shall be recorded as
EXCEPT in provided in ART 77
case of  CREDITORS of the sp who
judicial made such waiver
separation = may petition the court to
of rescind the waiver
property = to the extent of the amt
(JSP) sufficient to cover the amt
of their credits
SYSTEM OF CONJUGAL PARTNERSHIP OF GAINS (CPG)
GENERAL PROVISIONS
PRESUMPTION
ALL property acquired during the marriage,
 whether the acquisition appears to have
[116] been Made, Contracted or Registered
 in the name of one or both spouses,
 presumed to be conjugal UNLESS the
contrary is proved

CPG shall be governed by the RULES ON THE

CONTRACT OF PARTNERSHIP in all that is not in
[108] conflict with
 what is expressly determined in this Chapter
OR by the sps in their MS

In case the future spouses agree in the MS that

the regime of CPG shall govern their property
relations during marriage

 the provisions in this Chapter shall be of

supplementary application
[105]
The provisions of this Chapter shall also apply to
CPG already established between spouses
BEFORE the effectivity of this Code

 without prejudice to vested rights already

acquired in accordance with the CC or other
laws, as provided in ART 256
SYSTEM OF CONJUGAL PARTNERSHIP OF GAINS (CPG)
Upon DISSOLUTION of marriage OR the CPG… [106]
 net gains or benefits obtained by either or both
spouses shall be divided equally between them
 UNLESS otherwise agreed in the marriage
settlements.

EXCLUSIVE PROPERTY OF EACH SPOUSE

The spouses RETAIN the…
Ownership, Possession, Administration and
[110]
Enjoyment
…of their exclusive properties.
EITHER spouse may, during the marriage…
 TRANSFER THE ADMINISTRATION of his/her
exclusive property to the other
[110]
= by means of a public instrument
= which shall be recorded in the registry of
property of the place the property is located

The ALIENATION of any exclusive property of a

spouse administered by the other
 automatically TERMINATES the
[112]
administration over such property
 and the proceeds of the alienation shall be
turned over to the owner-spouse.
EITHER spouse may
[111]  Mortgage, Encumber, Alienate or otherwise
Dispose of his or her exclusive property
SYSTEM OF CONJUGAL PARTNERSHIP OF GAINS (CPG)
WHAT CONSTITUTES
THE EXCLUSIVE PROPERTY OF EACH SPOUSE [109]
That which is brought to the marriage as his or her
1
own
That which each acquires during the marriage by
gratuitous title
 Property donated or left by will to the spouses…
[113]
a. jointly and with designation of determinate shares:
= shall pertain to the donee-spouses as his or her
own exclusive property
b. in the absence of designation:
= share and share alike, without prejudice to the
right of accretion when proper
2
 IF the donations are onerous… [114]
= the amount of the charges shall be borne by the
exclusive property of the donee spouse,
= WHENEVER they have been advanced by the CPG
Retirement benefits shall be governed by the
Pensions
Annuities
rules on gratuitous or
Gratuities onerous acquisitions as
Usufructs may be proper in each
And similar benefits case [115]
By right of redemption
That which
By barter OR
3 is acquired
by… By exchange with property belonging to
only one of the spouses
That which is purchased with exclusive money of the
4
wife or of the husband
SYSTEM OF CONJUGAL PARTNERSHIP OF GAINS (CPG)
RE: PROPERTY BOUGHT IN INSTALLMENTS [118]
Property bought on instalments…
paid partly from exclusive funds of either/both sps AND partly from
conjugal funds…
 Belongs to the buyer/s  Belongs to the CPG
= IF full ownership was vested = IF such ownership was
before the marriage vested during the marriage
 In either case:
any amount advanced by CPG or by either/both sps shall be
reimbursed by the owner/s upon liquidation of the CPG

RE: OWNERSHIP OF IMPROVEMENTS [120]

The ownership of improvements (whether for utility or adornment)…
 made on the separate property of the sps
 at the expense of the CPG or through the acts or efforts of
either/both sps
= shall pertain to the CPG or to the original owner-spouse, subject to
the following rules: WHEN…
cost of the improvement made cost of the improvement made
by the CPG and any resulting by the CPG and any resulting
increase in value increase in value
more than less than
value of the property at the time value of the property at the time
of improvement of improvement
entire property of one of the sps said property shall be retained
shall belong to the CPG in ownership by the owner-sps
 IN EITHER CASE:
(1) subject to reimbursement of the property value of the
owner-spouse at the time of the improvement
(2) ownership of entire property shall be vested upon the
reimbursement
= which shall be made at the time of the liquidation of
the conjugal partnership
SYSTEM OF CONJUGAL PARTNERSHIP OF GAINS (CPG)
AMOUNT/CREDIT PAYABLE BELONGING TO ONE SPOUSE [119]
PRINCIPAL
Whenever an  sums which may be collected during the
amount or credit marriage in partial payments or by instalments
payable within a on the principal shall be the exclusive property
period of time of the sps
belongs to one INTEREST
of the spouses…  However, interests falling due during the
marriage on the principal shall belong to the CPG

The following are conjugal partnership properties [117]

(1) Those acquired by onerous title
 during the marriage
 at the expense of the common fund
 whether acquisition be for the partnership, or for only one of the
sps
(2) Those obtained from the Labor, Industry, Work or Profession of either
or both sps
(3) The fruits
 Natural, Industrial, or Civil
 due or received during the marriage from the common property
 as well as net fruits from the exclusive property of each sps
(4) The share of either spouse in the hidden treasure which the law
awards to the finder or owner of the property where the treasure is
found;
(5) Those acquired through occupation such as fishing or hunting;
(6) Livestock
 existing upon the dissolution of the partnership
 in excess of the number of each kind brought to the marriage by
either spouse
(7) Those which are acquired by chance
 such as winnings from gambling or betting
 However, losses therefrom shall be borne exclusively by the loser-
spouse.
SYSTEM OF CONJUGAL PARTNERSHIP OF GAINS (CPG)
CPG SHALL BE LIABLE FOR: [121]
of the spouse,
SUPPORT their common children, and
(1) legitimate children of either spouse
HOWEVER: support of illegitimate children shall be governed by
FC provisions on Support
All debts and obligations
 contracted during the marriage
 by the designated administrator-spouse
(2)
= OR by both spouses
= OR by one of them with the consent of the other
 for the benefit of the CPG
Debts and obligations contracted by either spouse without the
(3) consent of the other
 to the extent that the family may have benefited
All Taxes, Liens, Charges, and Expenses
(4)
 including major or minor repairs upon the CPG
All taxes and expenses for mere preservation
(5)
 made during marriage upon separate property of either sps
Expenses to enable either sps to commence or complete a
(6)
professional, vocational, or other activity for self-improvement
Ante-nuptial debts of either spouse
(7)
 insofar as they have redounded to the benefit of the family
The value of what is donated or promised by BOTH sps in favor of
their common legitimate children
(8)  for the exclusive purpose of commencing or completing a
professional or vocational course or other activity for self-
improvement
Expenses of litigation between the spouses
(9)
 unless the suit is found to groundless.
IF CPG is insufficient to cover foregoing liabilities
 Sps shall be solidarily liable for the unpaid balance with their
separate properties
SYSTEM OF CONJUGAL PARTNERSHIP OF GAINS (CPG)