PROPERTY RELATIONS Art. 81.

Everything stipulated in the settlements or contracts referred to in the

preceding articles in consideration of a future marriage, including donations between

BETWEEN SPOUSES
the prospective spouses made therein, shall be rendered void if the marriage does not
take place. However, stipulations that do not depend upon the celebration of the
marriages shall be valid.

A. GENERAL PROVISIONS
CPG ACP
Art. 74. The property relationship between husband and wife shall be governed in the
Property acquired prior to marriage is All property regardless of when they were
following order:
paraphernal. After marriage, conjugal. acquired is conjugal property.
(1) By marriage settlements executed before the marriage;
(2) By the provisions of this Code; and
(3) By the local custom. (118) Whatever is exclusive will remain
exclusive.
Art. 75. The future spouses may, in the marriage settlements, agree upon the regime
of absolute community, conjugal partnership of gains, complete separation of property,
or any other regime. In the absence of a marriage settlement, or when the regime
agreed upon is void, the system of absolute community of property as established in SITUATIONS
this Code shall govern. (119a) 1. ACP.
a. A property acquired exclusively after the marriage will become
Art. 76. In order that any modification in the marriage settlements may be valid, it must community.
be made before the celebration of the marriage, subject to the provisions of Articles b. Fruits of exclusive property = paraphernal. Subject to reimbursement.
66, 67, 128, 135 and 136. (121) c. Exclusive property/gratuitous title is sold by a spouse, the proceeds are
community because there is conversion. Subject to reimbursement.
Art. 77. The marriage settlements and any modification thereof shall be in writing, d. If personal property is exchanged/bartered = community. EXCEPT: if
signed by the parties and executed before the celebration of the marriage. They shall the property received will qualify as a property used for the personal and
not prejudice third persons unless they are registered in the local civil registry where exclusive use of the recipient spouse.
the marriage contract is recorded as well as in the proper registries of properties. 2. CPG.
(122a) a. A property acquired exclusively after the marriage with the spouse’s
paraphernal property, it will become paraphernal.
Art. 78. A minor who according to law may contract marriage may also execute his or b. Fruits of exclusive property = community
her marriage settlements, but they shall be valid only if the persons designated in c. Exclusive property is sold by a spouse, the proceeds are paraphernal.
Article 14 to give consent to the marriage are made parties to the agreement, subject d. If personal property is exchanged/bartered = exclusive.
to the provisions of Title IX of this Code. (120a) = impliedly repealed

Art. 79. For the validity of any marriage settlement executed by a person upon whom
a sentence of civil interdiction has been pronounced or who is subject to any other
disability, it shall be indispensable for the guardian appointed by a competent court to
be made a party thereto. (123a)
Art. 80. In the absence of a contrary stipulation in a marriage settlement, the property
relations of the spouses shall be governed by Philippine laws, regardless of the place
of the celebration of the marriage and their residence. This rule shall not apply:
(1) Where both spouses are aliens;
(2) With respect to the extrinsic validity of contracts affecting property not situated
in the Philippines and executed in the country where the property is located; and
(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. (124a)
RELEVANT PROVISIONS
- Because of the spouses’ oneness, they cannot sell property to each other except
when a separation of property was agreed upon in the marriage settlement or when
there has been a judicial separation of property (Art. 1490 NCC)
- Between spouses, there shall be a right of accretion unless the donor has
otherwise provided (Art. 753 NCC).
- An agreement in consideration of marriage must be in writing. Otherwise, it shall
be unenforceable.
- The requirement that an ante-nuptial agreement must be in writing is mandatory
for its enforceability and validity.
o For subsequent marriages where the previous marriage was terminated due to
the death of the former spouse, the surviving spouse cannot have any other
regime except a complete separation of property if the surviving spouse, within
one year from the death of the other, did not initiate any judicial or extrajudicial
settlement of the properties of their previous marriage (Art. 103 and 130 NCC).
 - Spouses cannot sell property to each other. EXCEPT: there is a separation of
property in the settlement or if there is a judicial separation of property.
- The FC favors the ACP rather than the separation.
MARRIAGE SETTLEMENT
- As to property relations, the spouses shall primarily be governed by their
settlement. REQUIREMENTS
o Must be in writing
o Signed by the parties
o Made prior to the celebration of the marriage
o Must be registered in the local civil registrar where the marriage contract is
recorded and in the proper registries of property
- An oral marriage settlement is void and cannot be ratified by any claim of partial
execution or absence of objection.
- The contracting parties can stipulate on any arrangement for their settlement.
EXCEPT:
o Contrary to law, public policy, and the Family Code
o That their property relations will start at a time other than the moment of the
celebration of marriage (Art. 88 and 107 FC)
o Allowing them to make any substantial donation to each other (Art. 87 FC)
o Automatic conversion of property regimes at a certain time in marriage is also
void.
- If there is no settlement or if the same is void, the absolute community of property
will prevail.
- Mixed-Up Property Regime: spouses shall retain as their own exclusive property
all their salaries earned during the marriage but will consider any real estate
purchased from the same as commonly owned while all personal properties as
exclusively owned.
- Rules on Validity
o The consideration of a marriage settlement is the marriage itself. If no marriage,
the settlement is void.
 Exception: stipulations that do not depend on the celebration of marriage
i.e. stipulation to support their common child because a parent is obliged
to support the child whether legitimate or not.
o If the provisions in the settlement are separable, the invalid provisions will not
render ineffectual the valid ones.
- Considerations prior to the enactment of the FC for subsequent marriages
o 1401 to 1416 NCC
o Computation in Phone
ON THE FAIRNESS OF THE SETTLEMENT
- Considerations on the fairness and reasonableness of the settlement:
o Relative situation of the parties
o Ages
o Health and experience
o Properties
o Family ties and connections
o Needs
o Other factors that show that the agreement was understandingly made
- If found unfair and/or unreasonable, its effectivity can still be maintained if it is
shown that the disadvantaged spouse, when they signed, had some understanding
of their rights to be waived or prejudiced or in any manner affected by the
agreement.
- Burden of proof of the invalidity of an agreement is on the spouse alleging it.
EXCEPTION: if the contract is unreasonable on its face and a presumption of
concealment arises, the burden shall be on the other party to prove the validity.
EXCEPTIONS
- If a marriage is terminated by the death of one spouse and the surviving spouse
marries again without initiating any judicial or extrajudicial settlement of the
properties of their previous marriage within one year from the death of the
deceased, a mandatory regime of complete separation of property shall govern.
ON MODIFICATIONS
General Rule: No modifications of the property after the celebration of marriage.
Exception: a modification may be made after the celebration after securing a judicial
approval and should only refer to the instances provided in Arts. 66, 67, 128, 135, and
136 FC.
- A revival of the former property regime upon reconciliation after a judicial decree
of legal separation has been rendered can be made only via a court order recorded
in the civil registries.
- A spouse may not enter into an agreement which will have the effect of converting
community property into separate property so as to relieve the same from liability
to be taken in satisfaction for the payment of community debts.
ON LOCAL CUSTOMS
- When the parties stipulate that local custom shall apply or that absolute community
shall not govern without mentioning what regime to use, local custom shall then
apply.
- If the settlement provides that neither absolute community or local custom shall
prevail without mentioning what to use, such provision will be void and the absolute
community shall be used.
CIVIL INTERDICTION
- 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, of martial
authority, of the right to manage his property, and of the right to dispose of such
property by any act or any conveyance inter vivos.
- it shall be indispensable for the guardian, appointed by the court, to be made a
party to the written marriage settlement
ON MINORITY
- An 18-year old can execute a marriage settlement without the consent of the
parents because once emancipated, an 18-year old becomes qualified and
responsible for all acts of civil life.

RULES GOVERNING PROPERTY RELATIONS
- Property relations of spouses is governed by their will provided that their agreement
will not be contrary to law, public policy, and within the limits of the Family Code.
- If the spouses are Filipinos, their property relations will be governed by Philippine
laws unless the contrary is agreed regardless of where they are situated.
EXCEPTION:
o Real and personal property because they shall always be subject to the law of
the country where they are situated
o If both spouses are aliens married in the Philippines.
- Reimbursement will happen at the liquidation of property when there is already a
declaration of separation of properties.
B. DONATION PROPTER NUPTIAS
Art. 82. Donations by reason of marriage are those which are made before its
celebration, in consideration of the same, and in favor of one or both of the future
spouses. (126)
Art. 83. These donations are governed by the rules on ordinary donations established
in Title III of Book III of the Civil Code, insofar as they are not modified by the following
articles. (127a)
Art. 84. If the future spouses agree upon a regime other than the absolute community
of property, they cannot donate to each other in their marriage settlements more than
one-fifth of their present property. Any excess shall be considered void.
Donations of future property shall be governed by the provisions on testamentary
succession and the formalities of wills. (130a)
Art. 85. Donations by reason of marriage of property subject to encumbrances shall
be valid. In case of foreclosure of the encumbrance and the property is sold for less
than the total amount of the obligation secured, the donee shall not be liable for the
deficiency. If the property is sold for more than the total amount of said obligation, the
donee shall be entitled to the excess. (131a)
Art. 86. A donation by reason of marriage may be revoked by the donor in the following
cases:
(1) If the marriage is not celebrated or judicially declared void ab initio except
donations made in the marriage settlements, which shall be governed by Article 81;
(2) When the marriage takes place without the consent of the parents or
guardian, as required by law;
(3) When the marriage is annulled, and the donee acted in bad faith;
(4) Upon legal separation, the donee being the guilty spouse;
(5) If it is with a resolutory condition and the condition is complied with;
(6) When the donee has committed an act of ingratitude as specified by the
provisions of the Civil Code on donations in general. (132a)
Art. 87. Every donation or grant of gratuitous advantage, direct or indirect, between
the spouses during the marriage shall be void, except moderate gifts which the
spouses may give each other on the occasion of any family rejoicing. The prohibition
shall also apply to persons living together as husband and wife without a valid
marriage.
Art. 43. The termination of the subsequent marriage referred to in the preceding Article
shall produce the following effects: (3) Donations by reason of marriage shall remain
valid, except that if the donee contracted the marriage in bad faith, such donations
made to said donee are revoked by operation of law
DONATIONS PROPTER NUPTIAS / DONATION BY REASON OF MARRIAGE
- Donation is an act of liberality. It must not be negotiated. The donee must not take
part in the decision-making of the donor.
- It may be part of the marriage settlement but it cannot be part of the property
settlement.
- Donation propter nuptias are without onerous consideration because the marriage
is the only motive for the donation and not its causa.
- May be subject to reduction for inofficiousness upon the donor’s death, if they
should infringe the legitime of a forced heir.
- Requisites for Donation
o In consideration of marriage
o Prior to the celebration
o Must be in favor of one or both of the spouses
o Must not be more than 1/5 of the donor’s present property if in a marriage
settlement.
- REMEMBER:
o IF THE LAW SAYS THE DONATION IS REVOKED BY OPERATION OF LAW,
THERE IS NO NEED TO FILE AN ACTION TO REVOKE THE DONATION
EXCEPT IF THE DONEE REFUSES TO RETURN THE PROPERTY. In which
case, donor has the right to file an action.
 Movable: prescription is 8 years
 Immovable: prescription is 30 years
o IF THE LAW SAYS THAT THE DONATION MAY BE REVOKED, THERE IS A
NEED TO FILE AN ACTION WHICH HAS A PRESCRIPTION OF FIVE YEARS
FROM THE JUDICIAL DECLARATION OF NULLITY, ANNULMENT, OR
LEGAL SEPARATION.
TYPES OF DONATIONS
- Donations that are not propter nuptias:
o Made in favor of the spouses after the celebration of the marriage
o Executed in favor of the future spouses but not in consideration of marriage
o Granted to persons other than the spouses even though they may be founded
on the marriage
- Donations may be contained in a marriage settlement. Requirements:
o Follows rules governing ordinary donations under Title III of Book III NCC
o Donee must accept the donation personally or through an authorized person
 o Acceptance must be made during the lifetime of the donor and done
- Donation of a movable may be made orally or in writing.
o Oral donation requires the simultaneous delivery of the thing
o If more than 5,000, it must be in writing. Otherwise, void.
- Donations of an immovable are valid if
o Made in a public document that specifies the property to be donated and the
value of the charges that the done must satisfy.
o Acceptance must be in a public document as well either in the same document
or in another. If in another, the donor shall be notified in an authentic form and
this step shall be noted in both instruments.
o Must be in the lifetime of the donor
- Donations of future property
o Shall be governed by the provisions on testamentary succession and the
formalities of a will.
o May be handwritten. Requirements:
 Should be entirely handwritten, dated and sighed by the donor.
 If not handwritten, it must be subscribed at the end thereof by the donor or
his name written by someone else in his presence.
 Attested and subscribed by three or more credible witnesses in the
presence of the donor an of one another.
 The other person who wrote the donor’s name shall also sign on the left
margin of all pages except on the left
 All pages shall be numbered in letters placed on the upper part of the page.
 Attestation clause shall state the number of pages used in which the deed
of donation is written and the fact that the donor signed every page thereof
or cause some other person to write his name under his express direction
in the presence of instrumental witnesses and that they witnessed and
signed the deed of donation and all the pages thereof in the presence of the
donor and one another
 If the attestation clause is in the language not understood by the witnesses,
it shall be interpreted to them
 Must be notarized by a notary public by the donor and the witnesses
- Donations between future spouses
o Requisites:
 Valid marriage settlement
 The property regime is not an absolute community
 Must not be more than 1/5 of the donor’s present property
 It must be accepted by the would-be spouse
 Must comply with the requisites in Title III Book III NCC on donations
o Useless if the property regime is absolute community
o Useless if there is no marriage settlement because the de facto regime would
be absolute community.
o Does it contradict the prohibition on donations between spouses? NO
 The reason for the rule is to prevent the exertion of undue influence by the
donor spouse to the donee.
 This danger is remote in future spouses than in married ones already.
 The law only contemplates donations made in their marriage settlements
because it is usually negotiated and agreed upon by the parties.
 Thus, exerting undue influence is clearly possible in the discussions of the
marriage settlements.
 In essence, the “not more than one-fifth limitation” is not applicable in case
the donation propter nuptias is made in a separate deed of donation
because the subtle hazards and the undue influence attendant in the
negotiation of a marriage settlement are generally absent in a donation,
which is done unilaterally in a separate deed of donation free from the
interference of even the donee-spouse
ON ONE-FIFTH LIMITATION
- If the marriage settlement is other than an ACP and there is also a donation propter
nuptias not included in a settlement but contained in a separated deed, the one-
fifth limitation will not apply.
- Applicable is the general rules on donation in Title III of Book III NCC.
o Article 750 NCC
 The donation may comprehend all the present property of the donor, or part
thereof, provided he reserves, in full ownership or in usufruct, suffi cient
means for the support of himself, and all relatives who, at the time of the
acceptance of the donation, are by law entitled to be supported by the
donor. Without such reservation, the donation shall be reduced on petition
of any person affected
o Article 752 NCC
 No person may give or receive more than he may give or receive by will.
The donation shall be inofficious in all that it may exceed this limitation.
DONATION WITH ENCUMBRANCE
- An encumbrance is a mortgage or other charge on property or assets
- If the object of the donation is subject of an encumbrance, the donation is still valid
but the donee’s rights are subject to the encumbrance.
o If the object of the donation has been foreclosed to answer for the unpaid debt
of the donor, the donee shall not be liable in the event the foreclosure is less
than the debt of the donee.
o The donee could not be liable because is not a debtor nor a solidary debtor with
respect to the principal obligation.
o If the foreclosure is greater than the debt, the excess shall go to the donee
because, as the owner, the donee is entitled to whatever value of the property
which can be obtained.
o Donee cannot seek reimbursement from the foreclosure since the donation was
an act of liberality by the donor.
MARRIAGE NOT CELEBRATED
- If not celebrated, the donor has the option to revoke or maintain the donation.
- If the donation is contained in a marriage settlement, the donation is void.
- No prescriptive period when the donor can revoke the donation. HOWEVER:
o Article 1149 NCC: all actions whose periods are not fixed must be brought
within five years from the time the right of action accrues. IF THE MARRIAGE
IS NOT CELEBRATED, THE TIME THE RIGHT OF ACTION ACCRUES
SHALL BE ON THE FIXED DATE OF THE MARRIAGE CEREMONY AND
FIVE YEARS THEREAFTER.
o IN CASES WHERE THE DONATION IS VOID BECAUSE IT IS INCLUDED IN
A MARRIAGE SETTLEMTN, THERE IS NO PRESCRIPTION.
 o IF THE DONATION DOES NOT DEPEND ON THE MARRIAGE (donations Any donation given by Ax to
NOT propter nuptias), donation is still valid. Xy MAY be void if Ax and
Xy were already guilty of
adultery/concubinage at the
MARRIAGE JUDICIALLY DECLARED VOID time of donation or when
- A marriage that is void by law does not automatically give the donor the right to they were already living as
revoke the donation. There must first be a judicial declaration that the marriage is spouses without a valid
void. marriage.
- Five situations that can arise depending on the reason for the nullity of the
marriage: If Ax and Beh’s Donation by Xy shall be
marriage was in revoked by operation of law
IF THEN OTHER NOTES itself void and no upon the finality of the
declaration of nullity judicial declaration of nullity
Subsequent Donation is revoked by If the donee does not has been obtained of Xy and Ax’s marriage.
marriage is void operation of law. want to return the object, prior to Ax’s
because Abe did not PROVIDED THAT SAID the donor can file an marriage to Xy
acquire a prior SPOUSE ACTED IN BAD action. Prescription starts
judicial declaration FAITH (meaning he knew on the date of the finality Both parties are in Donor has the option to Prescription is five years
of void marriage for from the start that his of the judicial declaration good faith revoke or not from the time of the
the previous subsequent marriage was of nullity. judicial declaration of
marriage. Requires void). The possession is nullity
If movable, 8 years. If
that Abe acted in lost from the finality of the
immovable, 30 years.
bad faith. declaration of nullity.
NO CONSENT OF PARENTS OR GUARDIAN
There is bad faith on All donations by reason of
the part both such void marriage shall be - For marriages contracted by parties 18 and above to below 21.
contracting parties revoked by operation of o Marriage is annullable and the donation may or may not be revoked by the
in a subsequent law. donor.
marriage where one o Does not require a prior judicial declaration of annulment.
of them obtained a o Donor has give years prescription from the time he knew that the consent was
judicial declaration not obtained.
of presumptive o Knowledge must be on the date of the celebration of marriage or after. If before,
death to be able to this rule cannot YET apply because the parents may eventually give their
remarry consent.

If the marriage has Applicable provision is Art. This does not exclude
ANNULLED MARRIAGE AND DONEE ACTED IN BAD FAITH
been declared void 86(1). Such donations may donations contained in
not based on the or may not be revoked by the marriage settlements - There is an irreconcilable conflict between Article 86(3) which makes the donation
grounds of Art. 44 the donor.. because they are merely revocable at the instance of the donor in case the marriage is annulled and
and Art. 40 governed by Art. 81. In the donee is proven to be in bad faith in contracting the marriage and Article 50 in
which case, the donation relation to Article 43(3) which provides that one of the effects of an annulment
is void. Good faith or bad decree is that a donation propter nuptias is considered revoked by operation of law
faith is irrelevant. if the donee is in bad faith
- What should be applied is Article 50 because t particular spouse who acted in bad
Ax is validly married Any donation propter faith should not be allowed to profit or gain, by any means whatsoever, from his act
to Beh and marries nuptias given by Xy to Ax of bad faith which precipitated such an annullable marriage.
Xy while the first may or may not be revoked - It is more in keeping with the spirit of the law to consider any donation propter
marriage was by Xy. nuptias as revoked by operation of law in case where the marriage is annulled and
subsisting (bigamy) the donee acted in bad faith.
- Why not give the innocent donor spouse the option to revoke the donation?
 o It may give rise to collusion: guilty spouse will bargain by saying that he will not
oppose the petition for annulment provided he keep the donated property.
o It will not be a good deterrent for those people who regard marriage as a way
to get rich.
EXCEPTION TO THE BAD FAITH REQUIREMENT
- There are instances when the marriage is annullable but the spouses may not be
in bad faith. Example
o Donee spouse informs donor or donor-spouse that he has STD. This act is not
considered bad faith.
o The donation to the donee shall remain effective and can never be revoked
either under Art. 86(3) or Art. 50 in relation to Art. 43(3).
ON LEGAL SEPARATION
- Marriage bond is not extinguished, there is a possibility the spouses may reconcile.
Thus, donor may or may not revoke the donation.
- In cases where there is infidelity, the donations between the spouses shall be void.
ON RESOLUTORY CONDITIONS
- Where the donor is a third party. If there is a resolutory condition and it is
complied with, the donor has the option to revoke the donation.
o Prescription: 5 years from the happening of the resolutory condition.
o Example: parent donates car to spouses. Resolutory condition: the car will be
revoked if they leave the Philippines. Spouse left. Father then has the option to
revoke the donation.
- Where the donor is the spouse. Donor-spouse can recover the donation without
a prescriptive period.
o Art. 1109 NCC – prescription does not run between husband and wife even
though there is a separation of property.
ACTS OF INGRATITUDE
- Art. 765 NCC
The donation may also be revoked at the instance of the donor, by reason of
ingratitude in the following cases:
1) If the donee should commit some offense against the person, the honor or
property of the donor, or of his wife or children under his parental authority;
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
- If the donor wants to revoke, prescription is one year from the time he had
knowledge of the fact of ingratitude of the donee.
o If the donation is revoked, the alienations and mortgages effected before the
notation of the complaint for revocation shall subsist. Later ones shall be void.
VOID DONATIONS
- No marriage takes place
- Donations made more than he may give or receive by will
- Donations made by persons who were guilty of infidelity at the time of the donation.
- Art. 87 donation or grant of gratuitous advantage between spouses and common
law spouses.
o Ratio: fear of undue and improper pressure or influence upon the donor
o Moderate gifts are allowed depending on a case-to-case basis considering the
financial capacity of the donor.
o Intended benefit does not have to be proven.
o On common law spouses
 Donation must be done when they were still living together as husband and
wife without the benefit of marriage.
o Covered in this provision is when a spouse sells property to the other and this
spouse also gave the other the money with which the property is to be bought.
o Other coverage of Art. 87 / Indirect Donations
1) to a stepchild who has no compulsory and/or legal heirs, such as his or her
children, other than the other spouse at the time of the donation;
2) to a common child who has no compulsory and/ or legal heirs other than
the other spouse at the time of the donation;
3) to the parents of the other spouse;
4) to the other spouse’s adopted child who has no compulsory and/or heirs
or, in cases when, at the time of the donation, the only surviving relative of the
adopted is the other spouse (parent of the adopted);
5) to a common adopted child who has no other compulsory and/or legal
heirs.
If the donee gives birth to a common child who is a compulsory or legal heir,
the invalidity of the donation will not be cured since the donation is void from
the beginning.
Except: donations for their common children for the purpose of education or
other activity for self-improvement. Any other reason is invalid because the
parents are presumptive heirs of the child.
PERSONS WHO CAN CHALLENGE VALIDITY OF TRANSFER
- Only who are real parties in interest.
- There must be an interference in the rights of the party in interest.
RESERVA TRONCAL
- Art. 891 NCC
The ascendant who inherits from his descendant any property which the latter may
have acquired by gratuitous title from another ascendant, or a brother or sister, is
obliged to reserve such property as he may have acquired by operation of law for
the benefit of relatives who are within the third degree and who belong to the line
from which said property came.
- Ratio: keep the property within the same bloodline.
 - Example: X and A are married. Y is their only son. X, before he died, donated to
his son Y a Pasig property. X has two living brothers, D and M. Thereafter Y died
without any descendant-heir. The Pasig-property was therefore inherited by A, the
mother. When the mother inherits the property, it became her property. If the
mother dies, the property will not go to the other heirs of the mother, like her parents
or brothers, but to D and M who are the living brothers of X and at the same time
are the uncles of Y. D and M are within the third degree from Y.
o The moment X donated to Y, it would seem as if it was a void indirect donation
to his wife A.
o However, D and M could not file a case to nullify X’s donation to his son since
they were not real parties in interest.
o Thus, reserve truncal will operate.
C. SYSTEM OF ABSOLUTE COMMUNITY OF PROPERTY
1) General Provisions
Art. 88. The absolute community of property between spouses shall commence at
the precise moment that the marriage is celebrated. Any stipulation, express or
implied, for the commencement of the community regime at any other time shall be
void. (145a)
Art. 89. No waiver of rights, shares and effects of the absolute community of
property during the marriage can be made except in case of judicial separation of
property.
When the waiver takes place upon a judicial separation of property, or after the
marriage has been dissolved or annulled, the same shall appear in a public
instrument and shall be recorded as provided in Article 77. The creditors of the
spouse who made such waiver may petition the court to rescind the waiver to the
extent of the amount sufficient to cover the amount of their credits. (146a)
Art. 90. The provisions on co-ownership shall apply to the absolute community of
property between the spouses in all matters not provided for in this Chapter.
GENERAL INFORMATION
- All properties before and during the marriage comprises the ACP. Spouses
become co-owners.
- ACP commences at the moment of the celebration of the marriage. Any stipulation
making the regime effective at any other time will be void.
- Art. 144 FC. In a partial separation of property regime, those not agreed upon as
separate shall be ACP.
- No waiver of rights, interests, shares, and effects of the ACP is allowed.
EXCEPTION
o When there is a judicial separation of property.
- This regime is more in consonance with the traditional oneness of the Filipino
family.
- An alien married to a Filipino cannot acquire property in the Philippines due to the
constitutional provision. Thus, if the Filipino sells his property without the consent
of the alien, the alien cannot sue in court.
- This is a merger into a single ownership of the separate properties of the spouses.
- The provisions on co-ownership are suppletory to this type of regime. In case of
conflict, the FC shall prevail.
2) Community Property and Its Charges
Art. 91. Unless otherwise provided in this Chapter or in the marriage settlements,
the community property shall consist of all the property owned by the spouses at
the time of the celebration of the marriage or acquired thereafter. (197a)
Art. 92. The following shall be excluded from the community property:
(1) Property acquired during the marriage by gratuitous title by either spouse,
and the fruits as well as the income thereof, if any, unless it is expressly provided
by the donor, testator or grantor that they shall form part of the community property;
(2) Property for personal and exclusive use of either spouse. However, jewelry
shall form part of the community property;
(3) Property acquired before the marriage by either spouse who has legitimate
descendants by a former marriage, and the fruits as well as the income, if any, of
such property. (201a)
Art. 93. Property acquired during the marriage is presumed to belong to the
community, unless it is proved that it is one of those excluded therefrom.
Art. 94. The absolute community of property shall be liable for:
(1) The support of the spouses, their common children, and legitimate children of
either spouse; however, the support of illegitimate children shall be governed by
the provisions of this Code on Support;
(2) All debts and obligations contracted during the marriage by the designated
administrator-spouse for the benefit of the community, or by both spouses, or by
one spouse with the consent of the other;
(3) Debts and obligations contracted by either spouse without the consent of the
other to the extent that the family may have been benefited;
(4) All taxes, liens, charges and expenses, including major or minor repairs, upon
the community property;
(5) All taxes and expenses for mere preservation made during marriage upon the
separate property of either spouse used by the family;
(6) Expenses to enable either spouse to commence or complete a professional
or vocational course, or other activity for self-improvement;
(7) Ante-nuptial debts of either spouse insofar as they have redounded to the
benefit of the family;
(8) The value of what is donated or promised by both spouses in favor of their
common legitimate children for the exclusive purpose of commencing or
completing a professional or vocational course or other activity for self-
improvement;
(9) Ante-nuptial debts of either spouse other than those falling under paragraph
(7) of this Article, the support of illegitimate children of either spouse, and liabilities
incurred by either spouse by reason of a crime or a quasi-delict, 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 the community; and
(10) Expenses of litigation between the spouses unless the suit is found to be
groundless.
If the community property is insufficient to cover the foregoing liabilities, except
those falling under paragraph (9), the spouses shall be solidarily liable for the
unpaid balance with their separate properties. (161a, 162a, 163a, 202a-205a)
Art. 95. Whatever may be lost during the marriage in any game of chance, betting,
sweepstakes, or any other kind of gambling, whether permitted or prohibited by
law, shall be borne by the loser and shall not be charged to the community but any
winnings therefrom shall form part of the community property.
SPECIAL TYPE OF CO-OWNERSHIP
- ACP is a special type of co-ownership. Thus, the law states that the provisions on
co-ownership in matters not mentioned in the FC is also applicable to fill the gap.
- Examples:
o Art. 486 NCC
Each co-owner may use the thing owned in common, provided he does
so in accordance with the purpose for which it is intended and in such a
way as not to injure the interest of the co-ownership or prevent the other
co-owners from using it according to their rights. The purpose of the co-
ownership may be changed by agreement, express or implied. (394a)
o Article 487 NCC
Any one of the co-owners may bring an action in ejectment.
- Difference with the generic co-ownership: in ACP, there is no waiver of rights, etc.
ON WAIVER
- Waiver is disallowed because the interest of the spouses in the community
properties is merely inchoate or an expectancy prior to liquidation.
- When there is a judicial separation of property, waiver is now allowed. Otherwise,
void. When is there a judicial separation?
o When marriage was dissolved or annulled
o Legal separation where separation of property is an effect
- When there is a waiver, it shall be in a public instrument.
- Creditors may petition the court to rescind a waiver of the spouses to the extent of
the amount that is payable to them. Example:
o A and B had their absolute community of property worth P1,000,000 dissolved
in accordance with law. Upon judicial separation of property, B is entitled to get
P500,000 as her share. B is indebted to X in the amount of P100,000. B decides
to waive her entire share in favor of A. X, the creditor of B, can seek the
rescission of the waiver to the extent of P100,000 to protect his interest.
EXCLUSIONS OF THE ACP
1. Art. 91. Unless otherwise provided in this Chapter or in the marriage
settlements….
 This provision is in accordance with Art. 1 where the spouses may fix their
property relations.
2. Art. 92. The following shall be excluded from the community property:
(1) Property acquired during the marriage by gratuitous title
 Must be a valid gratuitous title
 Inclusions: fruits and incomes
 May be an ACP if the donor states so.
(2) Property for personal and exclusive use of either spouse. However, jewelry
shall form part of the community property;
 May be acquired before or during the marriage
 Must be interpreted in terms of value. Thus, a jewelry of substantial value is
community property.
(3) Property acquired before the marriage by either spouse who has legitimate
descendants by a former marriage….
 Inclusions: fruits and income
 Not only children, but also grandchildren etc. They must all be legitimate.
 If all the descendants are illegitimate, whatever property acquired in the
previous void ab initio marriage after liquidation shall belong to the ACP of
the subsequent marriage.
 Take note: if voidable, the children of that marriage are still considered
legitimate.
 If the marriage was terminated by death and there was no liquidation one
year after the death in accordance to Art. 103, the subsequent marriage
shall only have a complete separation of property.
 If there was liquidation and the survivor has descendants from that
marriage, the properties before the subsequent marriage shall be
separate even if the subsequent marriage is ACP.
ON CONVERSION
- If what is excluded in the marriage settlement is the PHP 1 million only, whatever
is bought by that money is no longer excluded. Hence, community property.
- If a house is donated by gratuitous title and the owner-spouse sells it, the proceeds
will be community property.
- The law on ACP does not provide that property purchased with the exclusive
money of the wife or husband shall be excluded from the community property.
- Thus, in the event any property is exchanged or merely bartered for another
property, the result would be the same for the same reasons.
- EXCEPTION TO THE RULE ON CONVERSION: IF THE NEW PROPERTY IS
FOR THE PERSONAL AND EXCLUSIVE USE OF THE RECIPIENT SPOUSE.
- This rule does not apply to CPG because Article 109(3) states that properties
acquired by barter or exchange with exclusive property is not included in the CPG.
CHARGES ON THE ACP
1. Support
 Most sacred and important of all obligations
 The other obligations may fail but this one should not except if there is valid
cause
 Comprises everything indispensable for sustenance, dwelling, clothing,
medical attendance, education, transportation, and in keeping with the
financial capacity of the family
 Support of illegitimate children shall be governed by Support under the FC,
which shall be taken from the separate property of the parent-spouse.
 If the personal property is insufficient, it can be taken from the ACP,
which shall serve as advances to be deducted from the share of said
spouse upon liquidation.
2. Debts and obligations
During the Marriage
 If the administrator spouse contracts debt or obligation for the benefit of the
community, the ACP shall be liable.
 Consent not needed from the other spouse. However, there must
be proof to show that the debt or obligation has redounded to the
benefit of the family.
 If it did not redound to the benefit of the family, it may still be chargeable to
the ACP if it was contracted by both spouses or if the other gave their
consent.
 Any loss from the exercise of a profession or family business shall be
chargeable to the ACP.
 Any personal undertaking by a spouse i.e. being a guarantor to a
bond by a third party is not presumed to be for the benefit of the
family as any advantage that may arise is merely indirect.
Before the Marriage
 ACP shall be liable if it redounded to the benefit of the family.
 If it did not benefit, the exclusive property of the debtor shall be liable.
 In case of absence or insufficiency of personal property, the ACP shall pay,
which shall be considered as advances to be deducted from the share of the
debtor spouse upon liquidation
3. Taxes, liens, charges, repairs
 Expenditures incurred for the preservation of a separate property is
premised on the fact that such property has been used or is being used by
the family
4. Expenses or donation for self-improvement activities
 These are within the ambit of support for the family.
 The value of what is donated or promised by both spouses in favor of their
common legitimate children for the exclusive purpose of commencing or
completing a professional or vocational course or other activity for self-
improvement shall be chargeable
5. Liabilities by reason of a crime or quasi-delict
 Generally, not chargeable to the ACP.
 Liable only if the separate property is insufficient or none at all.
 Considered as advances of the share of the indebted spouse upon
liquidation.
6. Expenses of liquidation
 Requires that the suit is between the spouses and that it is not groundless
 ACP may also be liable in a suit where only one spouse is involved or if none
at all for so long as it benefits the family.
 The legal fees which she spent during litigation, wherein she was
subsequently acquitted, can be charged to the community property because
her act of defending herself in a criminal case for adultery “was as necessary
as a claim for support”.
7. Solidary liability of spouses
 Solidary obligations
o Those where several creditors or debtors or both concur, and
where each creditor has the right to demand and each debtor is
bound to perform, in its entirety, the prestation constituting the
object of the obligation
o Creditors can demand full payment in any one of the debtors.
 This solidary liability shall not include ante-nuptial debts not redounding to
the benefit of the family, the support of illegitimate children by either spouse,
and liabilities incurred by the spouse by reason of a crime or a quasi-delict
8. Insolvency of spouses
 ACP shall not be among the assets to be possessed by the assignee for the
payment of the insolvent debtor’s obligations
o EXCEPT IF IT REDOUNDED TO THE BENEFIT OF THE FAMILY
 Assignee definition
o An appointed person who represents the insolvent and the
creditors in insolvency proceedings whether voluntary or
involuntary
o Takes all properties of the insolvent and obtain title thereto
o They shall convert the estate into money for the settlement of debts
GAINS AND LOSSES IN GAMES OF CHANCE
- Losses shall be born by the loser
- Winnings shall be credited to the ACP
- If someone gives a spouse a sweepstake ticket which eventually wins, it will be
exclusive property because property acquired by gratuitous title including the fruits
and income thereof are exclusive properties. Except if the donor states that it
should be ACP.
- Gross income definition by the National Internal Revenue Code
o Including prize and winnings derived from whatever source.
3) Ownership, Administration, Enjoyment, and Disposition of Community of Property
Art. 96. The administration and enjoyment of the community property shall belong
to both spouses jointly. In case of disagreement, the husband's decision shall
prevail, subject to recourse to the court by the wife for proper remedy, which must
be availed of within five years from the date of the contract implementing such
decision.
In the event that one spouse is incapacitated or otherwise unable to participate in
the administration of the common properties, the other spouse may assume sole
powers of administration. These powers do not include disposition or encumbrance
without authority of the court or the written consent of the other spouse. In the
absence of such authority or consent, the disposition or encumbrance shall be void.
However, the transaction shall be construed as a continuing offer on the part of the
consenting spouse and the third person, and may be perfected as a binding
 contract upon the acceptance by the other spouse or authorization by the court
before the offer is withdrawn by either or both offerors. (206a)
Art. 97. Either spouse may dispose by will of his or her interest in the community
property. (n)
Art. 98. Neither spouse may donate any community property without the consent
of the other. However, either spouse may, without the consent of the other, make
moderate donations from the community property for charity or on occasions of
family rejoicing or family distress.
GENERAL INFORMATION
- There is joint administration and enjoyment which does not require that the
spouses act together.
o Each spouse may exercise full management powers subject to the intervention
of the court in proper cases.
- In cases involving the ACP and CPG, the signature of one spouse is sufficient in
the verification and certification of non-forum shopping even if both spouses are
petitioners in a case.
o It is presumed that the other spouse had knowledge of the other’s spouse’s
filing of a petition.
- The spouses are co-owners of the properties they introduced into the marriage and
those acquired after with the exceptions of those enumerated in Art. 92.
- The marriage settlement may designate one spouse as the administrator.
- A spouse may act without the consent of the other in case of repairs to the conjugal
property but they must, if practicable, first notify the other half of the necessity of
such repairs.
- In the Civil Code, the spouses are not allowed to make alterations of the common
property without the consent of the other even though benefits would result
therefrom.
o However, under the FC, if the alteration redounds to the benefit of the family,
the ACP may be charged for the expense.
- In case of disagreement in the administration, the decision of the husband prevails
subject to recourse by the wife to the court within five years from the contract
implementing such decision. The judicial proceeding shall then be summary in
nature.
o In case it is the husband who does not consent to the decision of the wife, the
wife may go to the court for relief.
o If the wife acts on her decision, the husband may also go to the court for relief.
o This does not mean that once a spouse goes to court, the petition would yield
in the administration of that spouse over that property. It would only mean
setting the matter of disagreement.
o The spouses can file a case for the nullity or annulment of the whole contract
itself.
EFFECT OF ALIENATION AND ENCUMBRANCE
- Any disposition by one spouse of said properties without the knowledge and/or
consent of the other is null and void.
o Prior to the FC, the disposition would have been voidable only.
o There is no prescription period to nullify the disposition.
- If the disposition has a buyer in good faith, then the sale cannot be voided. If in bad
faith, then the sale is voided.
- If there is knowledge by the wife but no consent, the contract is annullable at the
instance of the wife because according to the FC, it is the husband’s decision that
will prevail.
o If the wife ratifies the contract by express or implied act, she cannot seek the
annulment of the contract even within the prescription period.
o In this case, the contract is free from legal infirmity and is effective on the date
it was entered into.
EFFECT OF INCAPACITY OF ONE SPOUSE ON ADMINISTRATION
- If one is incapacitated, the other may assume sole powers of administration and
the appointment shall be in a summary proceeding under Article 235 FC if the other
spouse is
o Absent
o Separated in fact
o Abandoned the other
- If the spouse is incapacitated due to being an incompetent (suffering from a
physical defect in their mental faculties), the proper remedy is to file for a judicial
guardianship proceeding under Rule 93 of the RROC.
- In both cases, the spouse must follow the procedure for the sale of the ward’s
estate required of guardians under Rule 95 RROC if said spouse wants to sell real
property. This is so because the administrator must act as a guardian.
o The sole administrator cannot dispose or encumber property without either of
the following: (1) Judicial approval or (2) Written consent of the incapacitated
spouse
o Otherwise, void.
o However, this contract can be perfected by treating it as a continuing offer on
the un-consenting spouse and the third party. Perfection can be attained by
written acceptance by the other spouse or authorization by the court before the
offer is withdrawn by either or both offerors.
 In which case, the effectivity of the contract will be on the date it is perfected.
DISPOSITION BY WILL
- Will definition
o An act whereby a person is permitted, with the formalities prescribed by law, to
control to a certain degree the disposition of his estate, to take effect after his
death.
o A testator can give any property to whomever he wants provided it does not
encroach on the lawful legitime of his compulsory heirs.
- Legitime definition
o Part of the testator’s property which cannot be disposed of because the law has
reserved it for certain heirs who are called compulsory heirs.
- Considering that the testator is in an ACP, he can only dispose his interest in the
community property and not in a specific property.
- A disposition in a will of n interest in the community property is not a waiver of such
interest in the property.
o The act of decision is precisely done to take control of his interest.
 to give any information as to his or her whereabouts shall be prima facie presumed
to have no intention of returning to the conjugal dwelling. (178a)
PROHIBITION OF DONATIONS
- Donations of community property without the consent of the other spouse is
prohibited so as to protect the other’s share therein from the prodigality of a DISSOLUTION OF COMMUNITY PROPERTY
reckless or faithless spouse.
- Termination of the property regime =/= termination of marriage
- Donations, direct or indirect, between spouses of gratuitous advantage is also
- But, termination of marriage will lead to the termination of the property regime.
prohibited to avoid undue influence and pressure of the donating spouse to the
- After the termination of the property regime, there is liquidation and partition.
other.
- Exceptions:
o Moderate donations for charity or occasions of family rejoicing or family GROUNDS FOR THE DISSOLUTION
distress.
 The degree of moderation is on a case to case basis depending on the 1. Death of one spouse
financial situation of the spouses. - Civil personality is extinguished by death. The effect of death upon the rights and
o Donations for their common children’s self-improvement activities. obligations of the deceased shall be determined by law, by contract, and by will.
- Under Art. 103, upon the termination of the marriage by death, the community of
property shall be liquidated in the same proceeding for the settlement of the estate
of the deceased.
4) Dissolution
2. Decree of legal separation
- The offending spouse shall have no right to any share of the net profits earned by
Art. 99. The absolute community terminates:
the ACP or CPG, which shall be forfeited in accordance with Article 43(2).
(1) Upon the death of either spouse;
- Article 63(2)
(2) When there is a decree of legal separation;
o The absolute community or the conjugal partnership shall be dissolved and
(3) When the marriage is annulled or declared void; or
liquidated but the offending spouse shall have no right to any share of the net
(4) In case of judicial separation of property during the marriage under Articles
profits earned by the absolute community or the conjugal partnership, which
134 to 138. (175a)
shall be forfeited in accordance with the provisions of Article 43(2).
- Article 43(2)
Art. 100. The separation in fact between husband and wife shall not affect the
o … his or her share of the net profits of the community property or conjugal
regime of absolute community except that:
partnership shall be forfeited in favor of the common children or, if there are
(1) The spouse who leaves the conjugal home or refuses to live therein, without
none, the children of the guilty spouse by a previous marriage or, in default of
just cause, shall not have the right to be supported;
children, the innocent spouse.
(2) When the consent of one spouse to any transaction of the other is required
- Upon reconciliation, they may revive the property regime subject to Article 67.
by law, judicial authorization shall be obtained in a summary proceeding;
o Art. 67. The agreement to revive the former property regime referred to in the
(3) In the absence of sufficient community property, the separate property of both
preceding Article shall be executed under oath and shall specify:
spouses shall be solidarily liable for the support of the family. The spouse present
(1) The properties to be contributed anew to the restored regime;
shall, upon proper petition in a summary proceeding, be given judicial authority to
(2) Those to be retained as separated properties of each spouse; and
administer or encumber any specific separate property of the other spouse and use
(3) The names of all their known creditors, their addresses and the amounts
the fruits or proceeds thereof to satisfy the latter's share. (178a)
owing to each.
Art. 101. If a spouse without just cause abandons the other or fails to comply with
The agreement of revival and the motion for its approval shall be filed with the
his or her obligations to the family, the aggrieved spouse may petition the court for
court in the same proceeding for legal separation, with copies of both furnished
receivership, for judicial separation of property or for authority to be the sole
to the creditors named therein. After due hearing, the court shall, in its order,
administrator of the absolute community, subject to such precautionary conditions
take measure to protect the interest of creditors and such order shall be
as the court may impose.
recorded in the proper registries of properties.
The obligations to the family mentioned in the preceding paragraph refer to marital,
The recording of the ordering in the registries of property shall not prejudice any
parental or property relations.
creditor not listed or not notified, unless the debtor-spouse has sufficient
separate properties to satisfy the creditor's claim.
A spouse is deemed to have abandoned the other when her or she has left the
conjugal dwelling without intention of returning. The spouse who has left the
conjugal dwelling for a period of three months or has failed within the same period
 3. Nullity or annulment of marriage
ANNULMENT DECREE
The final annulment decree shall
provide for the liquidation, partition,
and distribution of the properties, the
custody and support of the common
children, and the delivery of their
presumptive legitime.
The ACP shall be dissolved and
liquidated.
If either of the spouses acted in bad
faith, they will not claim the net profits
of the ACP, which shall be forfeited in
favor of their common children,
children of the guilty spouse by a
previous marriage, or to the innocent
spouse.
NULLITY DECREE
General rule: there is no ACP in a
void marriage. The applicable
provisions are Article 147 and 148.
147 for those who do not have a legal
impediment to marry. 148 for those
who have.
It shall be liquidated in accordance
with the rules on co-ownership under
the Civil Code and not Art. 102 FC.
Art. 147. When only one acted in
good faith, the share of the party in
bad faith shall be forfeited in favor of
their common children or their
descendances, each vacant share
shall belong to the surviving
descendants. If no descendants, the
share shall belong to the innocent
party. This will also apply to Art. 148.
An ACP or a CPG may govern a void
marriage. This is the situation of the
subsequent void marriage that could
exist by the non-observance of Art.
40. The ACP or CPG terminates after
the declaration of nullity of the
subsequent void marriage.
o If in bad faith, net profits shall go to common children, children of the guilty by
a previous marriage, and innocent spouse.
EFFECT OF SEPARATION IN FACT
- General Rule: ACP is unaffected.
- ACP will still be liable for all obligations incurred by either spouse for the benefit of
the family and all those under Article 94.
- Obligations incurred for the benefit of the family by either spouse will be chargeable
to the ACP if the separate property is insufficient or none at all.
- Exceptions:
o Leaving spouse has no right to be supported
 Fault of the leaving spouse must always be proven. Absent such proof, the
leaving spouse may still be supported.
 However, the ACP may still be held liable if his expenses redounded to the
benefit of the family.
o Judicial authorization in lieu of the leaving spouse’s consent for any transaction
where the law requires the other’s consent
 Any of the spouses, even the leaving one, can institute a summary
proceeding.
o If ACP is insufficient, the present spouse may institute a summary proceeding
to be given authority to administer or encumber any specific separate property
(including fruits and income thereof) of the other for the support of the family.
 This pertains to the solidary liability of both spouses for the support of the
family.
 Only the present spouse can file a summary proceeding in this case. Such
proceeding is limited to only one purpose: to enable the present spouse to
satisfy the other’s share in the support of the family.

ON ABANDONMENT
4. Decree of separation of property - Implies a departure by one spouse with the avowed intent never to return, followed
- May be voluntary or involuntary. by prolonged absence without just cause, and without in the meantime providing in
o If voluntary, the parties can file the agreement for separation of property in court the least for one’s family although able to do so.
to obtain approval. After approval, they can file a revival but no more voluntary - There must be absolute cessation of martial relations, duties, and rights with the
separation will be allowed. intention of perpetual separation.
o If involuntary, it must be for a sufficient cause and must have court approval. - Must not only be physical estrangement but also amount to financial and moral
Sufficient causes under Article 135 FC: desertion.
 Civil interdiction - Aside from judicial separation of property, the aggrieved party may petition the
 Absentee spouse court for
 Loss of parental authority o Receivership
 Abandonment o Authority to be the sole administrator of the property regime
 Administrator has abused their power - Assumption of Articles 101 and 128:
 Separation in fact for at least 1 year and reconciliation is highly improbable. o Any spouse who has been absent for three months or has failed to give any
information as to their whereabouts in the same period shall be prima facie
5. Liquidation after affidavit of appearance presumed to have no intention of returning to the dwelling.
- A reappearing spouse or an interested person under Art. 41 files an affidavit of
reappearance to terminate the subsequent marriage of the present spouse validly
contracted with another person. FAILURE TO COMPLY WITH FAMILY OBLIGATIONS
o Article 43: termination of the marriage shall result in the dissolution of the
property regime. - The relief mentioned in Article 101 apply only when one of the spouses fails to
comply with their obligations to the family:
 o Marital
o Parental
o Property
- However, mere refusal to inform the other spouse of the progress of the family
business does not constitute abuse of administration powers.
o Abuse connotes willful and utter disregard of the interests of the partnership,
evidenced by a repetition of deliberate acts and/r omissions prejudicial to the
latter.
o Abuse =/= acts prejudicial to the other spouse
o Abuse =/= acts injurious to the partnership
5) Liquidation of Assets and Liabilities
Art. 102. Upon dissolution of the absolute community regime, the following
procedure shall apply:
(1) An inventory shall be prepared, listing separately all the properties of the
absolute community and the exclusive properties of each spouse.
(2) The debts and obligations of the absolute community shall be paid out of its
assets. In case of insufficiency of said assets, the spouses shall be solidarily liable
for the unpaid balance with their separate properties in accordance with the
provisions of the second paragraph of Article 94.
(3) Whatever remains of the exclusive properties of the spouses shall thereafter
be delivered to each of them.
(4) The net remainder of the properties of the absolute community shall constitute
its net assets, which shall be divided equally between husband and wife, unless a
different proportion or division was agreed upon in the marriage settlements, or
unless there has been a voluntary waiver of such share provided in this Code. For
purpose of computing the net profits subject to forfeiture in accordance with Articles
43, No. (2) and 63, No. (2), the said profits shall be the increase in value between
the market value of the community property at the time of the celebration of the
marriage and the market value at the time of its dissolution.
(5) The presumptive legitimes of the common children shall be delivered upon
partition, in accordance with Article 51.
(6) Unless otherwise agreed upon by the parties, 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. Children
below the age of seven years are deemed to have chosen the mother, unless the
court has decided otherwise. In case there is no such majority, the court shall
decide, taking into consideration the best interests of said children. (n)
Art. 103. Upon the termination of the marriage by death, the community property
shall be liquidated in the same proceeding for the settlement of the estate of the
deceased.
If no judicial settlement proceeding is instituted, the surviving spouse shall liquidate
the community property either judicially or extra-judicially within six months from
the death of the deceased spouse. If upon the lapse of the six months period, no
liquidation is made, any disposition or encumbrance involving the community
property of the terminated marriage shall be void.
Should the surviving spouse contract a subsequent marriage without compliance
with the foregoing requirements, a mandatory regime of complete separation of
property shall govern the property relations of the subsequent marriage. (n)
Art. 104. Whenever the liquidation of the community properties of two or more
marriages contracted by the same person before the effectivity of this Code is
carried out simultaneously, 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.
PROCEDURE
1. Inventory
a. The market value or the assessed value at the time of the liquidation
must be taken into account and not the purchase value.
b. New valuation may be allowed if the liquidation takes time provided that
all the properties are appraised.
2. Payment of debts
a. All debts must be paid where the regime is liable.
b. Take note of the advances of each spouses for their individual
obligations paid in advance by the regime.
3. Delivery of exclusive properties
a. Deliver the remains of the exclusive properties
b. These are those stipulated in the marriage settlement as exclusive or
even during the marriage and to the exclusive referred in Art. 92.
4. Partition of net assets
a. Net assets should be equally divided, which is the net remainder of the
regime after the first three steps.
b. There is no equal sharing if there is an agreed division in the marriage
settlement or if there is a valid waiver, which must only occur upon a
judicial separation of property or after the dissolution/annulment of the
marriage and which must be contained in a public instrument.
c. If in bad faith, common children, children of the guilty spouse by a
previous marriage, or the innocent spouse.
5. Delivery of the presumptive legitime
a. Only after the finality of an annulment or nullity decree
b. Does not apply to legal separation cases
c. Children or their guardian may institute a summary proceeding for the
enforcement of this step.
d. Shall be delivered in cash, property, or sound securities. EXCEPT if the
parties already provided for such matters.
LIQUIDATION UPON DEATH
- Section 2 Rule 73 ROC
“When the marriage is dissolved by the death of the husband or wife, the
community property shall be inventoried, administered, and liquidated, and the
debts thereof paid, in the estate or intestate proceedings of the deceased spouse.
 If both spouses have died, the conjugal partnership shall be liquidated in the testate
or intestate proceedings of either.”
- Exception:
o Deceased spouse left no will and no debts, all heirs are of age or minors are
represented by their guardians or legal representatives, they may divide among
themselves without letters of administration from the court
o It must be in a public instrument filed in the office of the register of deeds.
o If they disagree, they may do so in an ordinary action for partition.
o If there is only one heir, whole estate may be adjudicated through an affidavit
filed in the office of the register of deeds
- Any disposition or encumbrance of any specific property before the process of
liquidation has been completed or even before the lapse of the six-month period
shall be void.
- The spouses cannot claim any definite property when the regime is still in
existence. Rights of heirs only vest upon the death of the spouse.
- If there is a surviving spouse and compulsory heirs, the estate becomes their co-
ownership.
o As a co-owner, the spouse or the heirs can undertake any act of dominion over
their interest, share or participation but not over a specific concrete property.
- ALWAYS THE GENERAL RULE: it is only after liquidation that definable property
can be claimed by and adjudged to them from the remainder of their properties
after satisfaction of all the obligations which the community property has to pay.
- No complaint for the collection of indebtedness chargeable to the regime can be
brought against the surviving spouse unless he has committed to be solidarily liable
for the claim against the regime. Otherwise, void.
- If the surviving spouse validly remarries without any liquidation for the previous
marriage, the mandatory regime of complete separation of property shall govern.
o This is the only exception to the mandatory rule that in the absence of a regime,
the ACP shall govern.
o This applies even if the marriage settlement of the subsequent marriage states
that it should be ACP or CPG.
SIMULTANEOUS LIQUIDATION
- Refers to at least two marriages contracted prior to August 3, 1988 and involves a
situation where the community properties of each marriage are to be liquidated
simultaneously.
- Computation depends upon the proofs presented by the contending claimants.
- In case of doubt, the properties inventoried shall be divided between or among the
different communities in proportion to the capital and duration of each
- See computations in page 494 and 495.
- Excluded from the absolute community of a subsequent marriage is property
acquired before the marriage by either spouse who has legitimate descendants by
a former marriage, and the fruits as well as the income, if any, of such property
o Regardless if there was liquidation or not.
- If the termination is by nullity or annulment, the property regime in the subsequent
marriage is co-ownership because the subsequent marriage is void pursuant to
Articles 52 and 53 FC.
o Property acquired before the marriage will not be included in the co-ownership
D. CONJUGAL PARTNERSHIP OF GAINS
1) General Provisions
Art. 105. In case the future spouses agree in the marriage settlements that the
regime of conjugal partnership gains shall govern their property relations during
marriage, the provisions in this Chapter shall be of supplementary application.
The provisions of this Chapter shall also apply to conjugal partnerships of gains
already established between spouses before the effectivity of this Code, without
prejudice to vested rights already acquired in accordance with the Civil Code or
other laws, as provided in Article 256. (n)
Art. 106. Under the regime of conjugal partnership of gains, the husband and wife
place in a common fund the proceeds, products, fruits and income from their
separate properties and those acquired by either or both spouses through their
efforts or by chance, and, upon dissolution of the marriage or of the partnership,
the net gains or benefits obtained by either or both spouses shall be divided equally
between them, unless otherwise agreed in the marriage settlements. (142a)
GENERAL NOTES:
- Conjugal Partnership
 Definition: It is that formed by a husband and his wife whereby they place
in a common fund the fruits of their separate property, and the income from
their work or industry, the same to be divided between them EQUALLY (as
a general rule) upon the dissolution of the marriage or the partnership.
 Fruits of paraphernal properties form part of the assets of the conjugal
partnership and are therefore subject to the payment of the debts and
expenses of the spouses, but not to the payment of the personal obligation
of the husband, unless it be proved that such obligations were productive
of some benefit of the family
 No unilateral declaration by one spouse can change the character of a
conjugal property
 Conjugal nature is determined by law and not by the will of the spouses
 Duration; supposed to last until:
 The dissolution of marriage (death or annulment)
 Dissolution of the partnership (legal separation or judicial separation of
property)
Art. 107. The rules provided in Articles 88 and 89 shall also apply to conjugal
partnership of gains. (n)
Art. 108. The conjugal partnership shall be governed by the rules on the contract
of partnership in all that is not in conflict with what is expressly determined in this
Chapter or by the spouses in their marriage settlements. (147a)
2) Exclusive Property

Art. 109. The following shall be the exclusive property of each spouse:
(1) That which is brought to the marriage as his or her own;
(2) That which each acquires during the marriage by gratuitous title;
(3) That which is acquired by right of redemption, by barter or by exchange with
property belonging to only one of the spouses; and
(4) That which is purchased with exclusive money of the wife or of the husband.
(148a)
Art. 110. The spouses retain the ownership, possession, administration and
enjoyment of their exclusive properties.
Either spouse may, during the marriage, transfer the administration of his or her
exclusive property to the other by means of a public instrument, which shall be
recorded in the registry of property of the place the property is located. (137a, 168a,
169a)
Art. 111. A spouse of age may mortgage, encumber, alienate or otherwise dispose
of his or her exclusive property, without the consent of the other spouse, and
appear alone in court to litigate with regard to the same. (n)
Art. 112. The alienation of any exclusive property of a spouse administered by the
other automatically terminates the administration over such property and the
proceeds of the alienation shall be turned over to the owner-spouse. (n)
Art. 113. Property donated or left by will to the spouses, jointly and with designation
of determinate shares, shall pertain to the donee-spouses as his or her own
exclusive property, and in the absence of designation, share and share alike,
without prejudice to the right of accretion when proper. (150a)
Art. 114. If the donations are onerous, the amount of the charges shall be borne
by the exclusive property of the donee spouse, whenever they have been
advanced by the conjugal partnership of gains. (151a)
Art. 115. Retirement benefits, pensions, annuities, gratuities, usufructs and similar
benefits shall be governed by the rules on gratuitous or onerous acquisitions as
may be proper in each case.
3) Presumption in Favor of Conjugal Property
Art. 116. All property acquired during the marriage, whether the acquisition
appears to have been made, contracted or registered in the name of one or both
spouses, is presumed to be conjugal unless the contrary is proved.
4) Properties that Compose the Conjugal Partnership of Gains
Art. 117. The following are conjugal partnership properties:
(1) Those acquired by onerous title during the marriage at the expense of the
common fund, whether the acquisition be for the partnership, or for only one of the
spouses;
(2) Those obtained from the labor, industry, work or profession of either or both
of the spouses;
(3) The fruits, natural, industrial, or civil, due or received during the marriage from
the common property, as well as the net fruits from the exclusive property of each
spouse;
(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; and
(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.
5) On Installments and Interest
Art. 118. Property bought on installments paid partly from exclusive funds of either
or both spouses and partly from conjugal funds belongs to the buyer or buyers if
full ownership was vested before the marriage and to the conjugal partnership if
such ownership was vested during the marriage. In either case, any amount
advanced by the partnership or by either or both spouses shall be reimbursed by
the owner or owners upon liquidation of the partnership. (n)
Art. 119. Whenever an amount or credit payable within a period of time belongs to
one of the spouses, the sums which may be collected during the marriage in partial
payments or by installments on the principal shall be the exclusive property of the
spouse. However, interests falling due during the marriage on the principal shall
belong to the conjugal partnership.
6) Rules on Improvement
Art. 120. The ownership of improvements, whether for utility or adornment, made
on the separate property of the spouses at the expense of the partnership or
through the acts or efforts of either or both spouses shall pertain to the conjugal
partnership, or to the original owner-spouse, subject to the following rules:
When the cost of the improvement made by the conjugal partnership and any
resulting increase in value are more than the value of the property at the time of
the improvement, the entire property of one of the spouses shall belong to the
conjugal partnership, subject to reimbursement of the value of the property of the
owner-spouse at the time of the improvement; otherwise, said property shall be
retained in ownership by the owner-spouse, likewise subject to reimbursement of
the cost of the improvement.
In either case, the ownership of the entire property shall be vested upon the
reimbursement, which shall be made at the time of the liquidation of the conjugal
partnership.
7) Charges upon the Conjugal Partnership of Gains
Art. 121. The conjugal partnership shall be liable for:
 (1) The support of the spouse, their common children, and the legitimate children
of either spouse; however, the support of illegitimate children shall be governed by
the provisions of this Code on Support;
(2) All debts and obligations contracted during the marriage by the designated
administrator-spouse for the benefit of the conjugal partnership of gains, or by both
spouses or by one of them with the consent of the other;
(3) Debts and obligations contracted by either spouse without the consent of the
other to the extent that the family may have benefited;
(4) All taxes, liens, charges, and expenses, including major or minor repairs upon
the conjugal partnership property;
(5) All taxes and expenses for mere preservation made during the marriage upon
the separate property of either spouse;
(6) Expenses to enable either spouse to commence or complete a professional,
vocational, or other activity for self-improvement;
(7) Ante-nuptial debts of either spouse insofar as they have redounded to the
benefit of the family;
(8) The value of what is donated or promised by both spouses in favor of their
common legitimate children for the exclusive purpose of commencing or
completing a professional or vocational course or other activity for self-
improvement; and
(9) Expenses of litigation between the spouses unless the suit is found to
groundless.
If the conjugal partnership is insufficient to cover the foregoing liabilities, the
spouses shall be solidarily liable for the unpaid balance with their separate
properties. (161a)
Art. 122. The payment of personal debts contracted by the husband or the wife
before or during the marriage shall not be charged to the conjugal properties
partnership except insofar as they redounded to the benefit of the family.
Neither shall the fines and pecuniary indemnities imposed upon them be charged
to the partnership.
However, the payment of personal debts contracted by either spouse before the
marriage, that of fines and indemnities imposed upon them, as well as the support
of illegitimate children of either spouse, may be enforced against the partnership
assets after the responsibilities enumerated in the preceding Article have been
covered, if the spouse who is bound should have no exclusive property or if it
should be insufficient; but at the time of the liquidation of the partnership, such
spouse shall be charged for what has been paid for the purpose above-mentioned.
(163a)
Art. 123. Whatever may be lost during the marriage in any game of chance or in
betting, sweepstakes, or any other kind of gambling whether permitted or prohibited
by law, shall be borne by the loser and shall not be charged to the conjugal
partnership but any winnings therefrom shall form part of the conjugal partnership
property.
8) Administration of the Conjugal Partnership of Gains
Art. 124. The administration and enjoyment of the conjugal partnership shall
belong to both spouses jointly. In case of disagreement, the husband's decision
shall prevail, subject to recourse to the court by the wife for proper remedy, which
must be availed of within five years from the date of the contract implementing such
decision.
In the event that one spouse is incapacitated or otherwise unable to participate in
the administration of the conjugal properties, the other spouse may assume sole
powers of administration. These powers do not include disposition or encumbrance
without authority of the court or the written consent of the other spouse. In the
absence of such authority or consent, the disposition or encumbrance shall be void.
However, the transaction shall be construed as a continuing offer on the part of the
consenting spouse and the third person, and may be perfected as a binding
contract upon the acceptance by the other spouse or authorization by the court
before the offer is withdrawn by either or both offerors. (165a)
Art. 125. Neither spouse may donate any conjugal partnership property without the
consent of the other. However, either spouse may, without the consent of the other,
make moderate donations from the conjugal partnership property for charity or on
occasions of family rejoicing or family distress.
9) Dissolution and Liquidation of the Conjugal Partnership of Gains
Art. 126. The conjugal partnership terminates:
(1) Upon the death of either spouse;
(2) When there is a decree of legal separation;
(3) When the marriage is annulled or declared void; or
(4) In case of judicial separation of property during the marriage under Articles
134 to 138. (175a)
Art. 127. The separation in fact between husband and wife shall not affect the
regime of conjugal partnership, except that:
(1) The spouse who leaves the conjugal home or refuses to live therein, without
just cause, shall not have the right to be supported;
(2) When the consent of one spouse to any transaction of the other is required
by law, judicial authorization shall be obtained in a summary proceeding;
(3) In the absence of sufficient conjugal partnership property, the separate
property of both spouses shall be solidarily liable for the support of the family. The
spouse present shall, upon petition in a summary proceeding, be given judicial
authority to administer or encumber any specific separate property of the other
spouse and use the fruits or proceeds thereof to satisfy the latter's share. (178a)
Art. 128. If a spouse without just cause abandons the other or fails to comply with
his or her obligation to the family, the aggrieved spouse may petition the court for
receivership, for judicial separation of property, or for authority to be the sole
administrator of the conjugal partnership property, subject to such precautionary
conditions as the court may impose.
The obligations to the family mentioned in the preceding paragraph refer to marital,
parental or property relations.
A spouse is deemed to have abandoned the other when he or she has left the
conjugal dwelling without intention of returning. The spouse who has left the
conjugal dwelling for a period of three months or has failed within the same period
to give any information as to his or her whereabouts shall be prima facie presumed Art. 131. Whenever the liquidation of the conjugal partnership properties of two or
to have no intention of returning to the conjugal dwelling. more marriages contracted by the same person before the effectivity of this Code
is carried out simultaneously, the respective capital, fruits and income of each
Art. 129. Upon the dissolution of the conjugal partnership regime, the following partnership shall be determined upon such proof as may be considered according
procedure shall apply: to the rules of evidence. In case of doubt as to which partnership the existing
(1) An inventory shall be prepared, listing separately all the properties of the properties belong, the same shall be divided between the different partnerships in
conjugal partnership and the exclusive properties of each spouse. proportion to the capital and duration of each. (189a)
(2) Amounts advanced by the conjugal partnership in payment of personal debts
and obligations of either spouse shall be credited to the conjugal partnership as an Art. 132. The Rules of Court on the administration of estates of deceased persons
asset thereof. shall be observed in the appraisal and sale of property of the conjugal partnership,
(3) Each spouse shall be reimbursed for the use of his or her exclusive funds in and other matters which are not expressly determined in this Chapter. (187a)
the acquisition of property or for the value of his or her exclusive property, the
ownership of which has been vested by law in the conjugal partnership. Art. 133. From the common mass of property support shall be given to the surviving
(4) The debts and obligations of the conjugal partnership shall be paid out of the spouse and to the children during the liquidation of the inventoried property and
conjugal assets. In case of insufficiency of said assets, the spouses shall be until what belongs to them is delivered; but from this shall be deducted that amount
solidarily liable for the unpaid balance with their separate properties, in accordance received for support which exceeds the fruits or rents pertaining to them.
with the provisions of paragraph (2) of Article 121.
(5) Whatever remains of the exclusive properties of the spouses shall thereafter
be delivered to each of them.
(6) Unless the owner had been indemnified from whatever source, the loss or E. SEPARATION OF PROPERTY AND ADMINISTRATION OF COMMON PROPERTY
deterioration of movables used for the benefit of the family, belonging to either BY ONE SPOOUSE
spouse, even due to fortuitous event, shall be paid to said spouse from the conjugal 1) Judicial Separation of Property for Sufficient Cause
funds, if any. 2) Voluntary Separation of Property
(7) The net remainder of the conjugal partnership properties shall constitute the 3) Effects of Separation and Revival
profits, which shall be divided equally between husband and wife, unless a different 4) Sole Administration of the Other Spouse’s Property
proportion or division was agreed upon in the marriage settlements or unless there F. Regime of Separate Property
has been a voluntary waiver or forfeiture of such share as provided in this Code. G. Property Regimes of Unions without Marriage
(8) The presumptive legitimes of the common children shall be delivered upon
the partition in accordance with Article 51.
(9) In the partition of the properties, the conjugal dwelling and the lot on which it
is situated shall, unless otherwise agreed upon by the parties, be adjudicated to
the spouse with whom the majority of the common children choose to remain.
Children below the age of seven years are deemed to have chosen the mother,
unless the court has decided otherwise. In case there is no such majority, the court
shall decide, taking into consideration the best interests of said children. (181a,
182a, 183a, 184a, 185a)

Art. 130. Upon the termination of the marriage by death, the conjugal partnership
property shall be liquidated in the same proceeding for the settlement of the estate
of the deceased.

If no judicial settlement proceeding is instituted, the surviving spouse shall liquidate

the conjugal partnership property either judicially or extra-judicially within six
months from the death of the deceased spouse. If upon the lapse of the six-month
period no liquidation is made, any disposition or encumbrance involving the
conjugal partnership property of the terminated marriage shall be void.

Should the surviving spouse contract a subsequent marriage without compliance

with the foregoing requirements, a mandatory regime of complete separation of
property shall govern the property relations of the subsequent marriage. (n)