Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 22

PROPERTY RELATIONS SYSTEM OF ABSOLUTE COMMUNITY

The property relations between husband and SECTION 1: GENERAL PROVISIONS


wife shall be governed in the following order:
1) Marriage Settlements;
2) Provisions of the Family Code; and Article 88. The absolute community of
3) Local Customs property between spouses shall commence at
the precise moment that the marriage is
celebrated. Any stipulation, express or implied,
Marriage Settlements for the commencement of the community
- also called ante nuptial contract. regime at any other time shall be void.

 Requisites:
I. Effectivity of ACP:
1) Contract that must be in writing
• Spouses failed to execute Marriage
2) Signed by the parties to a marriage
Settlement
3) Executed before the celebration of
• Marriage settlement is VOID
marriage
• Precise moment the marriage is
4) The object is their property relations
celebrated
• Not later than the marriage celebration
 Who are the parties?
1) Future husband and wife. II. Nature of Interest of Spouses in the
2) If parties need parental consent, parent Community Property:
or guardian must be made a party. • Prior to liquidation of CP, Interest of
3) If parties under civil interdiction or each spouse in the conjugal assets are:
other disability, guardian appointed by 1) Inchoate, a mere expectancy;
the court must be made a party. 2) Does not constitute a legal nor
an equitable estate;
3) Does not ripen into title.
PROPERTY REGIMES • Rights of husband or wife to ½ of
conjugal assets does not vest until:
Property regimes named in the Family Code: 1) Dissolution and liquidation of
1) Absolute community of property (ACP) CP; or
2) Conjugal partnership of gains (CPG) 2) Dissolution of marriage
3) Complete separation of property (CSP) • Limited to the net remainder, resulting
4) Any other regimes (combination of 2 or all) from liquidation of CP after its
dissolution
Favored Property Regime: • Net Assets = Community Property –
In the absence of marriage settlement or when Conjugal Obligations
the property regime provided therein is void: • Net Assets divided equally between
FC: Absolute Community Property (ACP) spouses or respective heirs.
NCC: Relative Community Property or
Conjugal Property of Gains (CPG)
III. Abalos vs Macatangay, GR No. 155043 cannot affect the transaction between
Esther and Respondent.
Facts:  On the other hand, the CA considered the
 Petitioner, Arturo R. Abalos, and his wife, RMOA executed by Arturo valid to effect
Esther, are the registered owners of a the sale of his conjugal share in the
parcel of land with improvements. property.
 Armed with a Special Power of Attorney
(SPA) purportedly issued by his wife, Issue:
Petitioner executed a Receipt and Whether or not the sale of the property is
Memorandum of Agreement (RMOA), in valid.
favor of Respondent, Dr. Galicano S.
Macatangay, Jr., binding himself to sell to Ruling:
respondent the subject property and not to No, the sale of the property is not valid.
offer the same to any other party within
thirty (30) days from date. In San Juan Structural and Steel Fabricators,
 Respondent gave an earnest money Inc. v. Court of Appeals, the Court ruled that neither
amounting to P5,000.00 to be deducted spouse could alienate in favor of another, his or
from the purchase price of P1,300,000.00 her interest in the partnership or in any property
in favor of the spouses. belonging to it, or ask for partition of the
 Apparently however, Esther and Arturo properties before the partnership itself had been
were having a rocky relationship. legally dissolved.
 Esther executed a SPA in favor of her sister
and that she is selling her share in the In this case, even on the supposition that
conjugal property to Respondent. the parties only disposed of their respective
 Respondent informed the couple that he shares in the property, the sale, assuming that it
has prepared a check to cover the exists, is still void for as previously stated, the right
remainder of the amount that needs to be of the husband or the wife to one-half of the
paid for the land but the spouses failed to conjugal assets does not vest until the liquidation
deliver the land. of the conjugal partnership.

RTC Ruling:
 Dismissed the complaint because the SPA
could not have authorized Arturo to sell the
property to Respondent as it was falsified.

CA Ruling:
 Reversed the decision, ruling that the SPA
in favor of Arturo, assuming it was void,
Article 89. No waiver of rights, shares and SECTION 2: WHAT CONSTITUTES COMMUNITY
effects of the absolute community of property PROPERTY?
during the marriage can be made except in case
of judicial separation of property.
Article 91. Unless otherwise provided in this
When the waiver takes place upon a Chapter or in the marriage settlements, the
judicial separation of property, or after the community property shall consist of all the
marriage has been dissolved or annulled, the property owned by the spouses at the time of
same shall appear in a public instrument and the celebration of the marriage or acquired
shall be recorded as provided in Article 77. The thereafter.
creditors of the spouse who made such waiver
may petition the court to rescind the waiver to I. Community Property
the extent of the amount sufficient to cover In the absence of marriage settlements,
the amount of their credits. community property, generally, consists:
• All property owned by the spouses at
I. Waiver of Rights: the time of the celebration of marriage;
GR: Void and
XPN: Exceptions • Acquired after the celebration of
– Judicial Separation of Property, or marriage
– Legal Separation

II. Formal Requisites of Waiver: Article 92. The following shall be excluded from
• Must appear in a public instrument the community property:
• Must be recorded in:
– The local civil registry; and (1) Property acquired during the marriage by
– The registry of property gratuitous title by either spouse, and the fruits
as well as the income thereof, if any, unless it is
III. Protection to Creditors: expressly provided by the donor, testator or
• Waiver should not prejudice the grantor that they shall form part of the
creditors community property;
• Waiver can be rescinded by creditors
sufficient to cover the amount of (2) Property for personal and exclusive use of
credits. either spouse. However, jewelry shall form part
of the community property;

Article 90. The provisions on co-ownership (3) Property acquired before the marriage by
shall apply to the absolute community of either spouse who has legitimate descendants
property between the spouses in all matters by a former marriage, and the fruits as well as
not provided for in this Chapter. the income, if any, of such property.
I. Law on Co-ownership:
• Law on Co-Ownership is applied to ACP
• Art. 484-501, New Civil Code
GR: Community property shall consist of all (4) All taxes, liens, charges and expenses,
property owned by spouses at the time of including major or minor repairs, upon the
celebration of the marriage or acquired thereafter. community property;
XPN: Art. 92 of FC (5) All taxes and expenses for mere preservation
XPN to the XPN: made during marriage upon the separate
1. The donor, testator, or grantor expressly property of either spouse used by the family;
provides otherwise. (6) Expenses to enable either spouse to
2. Jewelry forms part of ACP. commence or complete a professional or
vocational course, or other activity for self-
improvement;
(7) Antenuptial debts of either spouse insofar as
Article 93. Property acquired during the
they have redounded to the benefit of the
marriage is presumed to belong to the
family;
community, unless it is proved that it is one of
(8) The value of what is donated or promised by
those excluded therefrom.
both spouses in favor of their common
legitimate children for the exclusive purpose of
I. Presumption: commencing or completing a professional or
Property acquired during the vocational course or other activity for self-
marriage is presumed to belong to the improvement;
community, except those excluded (9) Antenuptial debts of either spouse other
therefrom. than those falling under paragraph (7) of this
Article, the support of illegitimate children of
either spouse, and liabilities incurred by either
SECTION 3: CHARGES UPON AND OBLIGATIONS spouse by reason of a crime or a quasi-delict, in
OF THE ABSOLUTE COMMUNITY case of absence or insufficiency of the exclusive
property of the debtor-spouse, the payment of
which shall be considered as advances to be
Article 94. The absolute community of property
deducted from the share of the debtor-spouse
shall be liable for:
upon liquidation of the community; and
(10) Expenses of litigation between the spouses
(1) The support of the spouses, their common unless the suit is found to be groundless.
children, and legitimate children of either
spouse; however, the support of illegitimate If the community property is insufficient
children shall be governed by the provisions of to cover the foregoing liabilities, except those
this Code on Support;
falling under paragraph (9), the spouses shall be
(2) All debts and obligations contracted during solidarily liable for the unpaid balance with their
the marriage by the designated administrator- separate properties.
spouse for the benefit of the community, or by
both spouses, or by one spouse with the consent
of the other; I. Charges Upon the ACP
(3) Debts and obligations contracted by either The absolute community property shall be
spouse without the consent of the other to the liable for:
extent that the family may have been benefited; 1) Support of the spouses and children:
2)
 Support from Spouses
• Even if not living together except 9) Donations by Both Spouses to Common
when a spouse leaves conjugal Legitimate Children;
home without just cause  Purpose: professional, vocational courses
• Even during pendency of action for or activities for self-improvement
legal separation or annulment of
marriage 10) Ante-Nuptial Debts not under (7), Support
 Common Children of Illegitimate Children, Liabilities of Either
• Legitimate children of previous Spouse Arising from Crime or Quasi-Delict;
marriage  Only the debtor-spouse has no exclusive
• Illegitimate children - follow the property or his or her property is
provisions on Support and (9) insufficient.
 The payments by the ACP are deemed
3) Debts and Obligations Contracted During advances to be deducted from the share of
Marriage; the guilty spouse upon the liquidation of
 Either by both spouses or one of them, the absolute community.
with the consent of the other.
 In (2) and (3), creditors need not prove that 11) Expenses of Litigation between Spouses
the debts benefited the family.

4) Debts Contracted by one Spouse Without


Article 95. Whatever may be lost during the
Consent of the other;
marriage in any game of chance, betting,
 ACP liable only to the extent that the debt
sweepstakes, or any other kind of gambling,
benefited the family.
whether permitted or prohibited by law, hsall be
borne by the loser and shall not be charged to the
5) Tax, Liens, Repairs on Community
community but any winnings therefrom shall
Property;
form part of the community property.
 Includes both major and minor repairs

6) Taxes and Expenses for Mere preservation I. Gambling Losses


of Separate properties; • Gambling losses shall be borne by the
 Applies only to separate properties by losing spouse’ separate property,
either spouse being used by the family, not • Winnings shall accrue to the community
those that do not benefit the family. property.
 Expenses limited to minor repairs.

7) Expenses for professional, Vocational, or


Self-Improvement Course of Spouses;

8) Ante-nuptial Debts that Benefited the


Family;
 If the ante-nuptial debt did not benefit the
family, applicable rule is (9).
SECTION 4: OWNERSHIP, ADMINISTRATION, consent of the absent or incapacitated
ENJOYMENT DISPOSITION OF THE COMMUNITY spouse.
PROPERTY
 In Homeowners Savings & Loan Bank v. Dailo
(2005)—
Article 96. The administration and enjoyment of In the absence of (court) authority
the community property shall belong to both or written consent of the other spouse,
spouses jointly. In case of disagreement, the any disposition or encumbrance of the
husband's decision shall prevail, subject to conjugal property shall be void.
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. Article 97. Either spouse may dispose by will of
his or her interest in the community property.
In the event that one spouse is incapacitated or
otherwise unable to participate in the
I. Disposition of Property
administration of the common properties, the
 Either spouse may, through a will,
other spouse may assume sole powers of
dispose his/her interest in the
administration. These powers do not include
community property.
disposition or encumbrance without authority of
 However, the will should refer only to
the court or the written consent of the other
his/her own share in the community
spouse. In the absence of such authority or
property
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 Article 98. Neither spouse may donate any
be perfected as a binding contract upon the community property without the consent of the
acceptance by the other spouse or authorization other. However, either spouse may, without the
by the court before the offer is withdrawn by consent of the other, make moderate donations
either or both offerors. from the community property for charity or on
occasions of family rejoicing or family distress.
I. Administration of Property
GR: Belongs to both spouses jointly. If they I. Donation of Property
disagree the husband’ decision prevails. GR: Donation of one spouse without the
However, the wife has five years from the consent of the other is not allowed
date of the decision to go to court for XPNS:
recourse. Otherwise, it is presumed that a. Moderate donations to charity due to
she agreed with the husband’s decision. family rejoicing or distress;
XPN: When the other spouse is b. Moderate gifts by each spouse to the
incapacitated, or unable to participate in other due to family rejoicing.
the administration (e.g. when abroad). The
powers refer solely to administration;
disposition or encumbrance requires
SECTION 5: DISSOLUTION OF THE ABSOLUTE Article 101. If a spouse without just cause
COMMUNITY REGIME abandons the other or fails to comply with his or
her obligations to the family, the aggrieved
spouse may petition the court for receivership,
Article 99. The absolute community terminates: for judicial separation of property or for
(1) Upon the death of either spouse; authority to be the sole administrator of the
(2) When there is a decree of legal separation; absolute community, subject to such
(3) When the marriage is annulled or declared precautionary conditions as the court may
void; or impose.
(4) In case of judicial separation of property
during the marriage under Article 134 to 138. The obligations to the family mentioned
in the preceding paragraph refer to marital,
 The revival of the previous marriage by parental or property relations.
the reappearance of the spouse
judicially presumptively dead and the A spouse is deemed to have abandoned
execution by him of an affidavit of the other when he or she has left the conjugal
reappearance. 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
Article 100. The separation in fact between her whereabouts shall be prima facie presumed
husband and wife shall not affect the regime of to have no intention of returning to the conjugal
absolute community except that: dwelling.

(1) The spouse who leaves the conjugal home or


I. Remedies of Aggrieved Spouse in case
refuses to live therein, without just cause, shall
of Abandonment:
not have the right to be supported;
1. Receivership – a remedy availed of by
one who has interest in a property or
(2) When the consent of one spouse to any
fund which is in danger of being lost,
transaction of the other is required by law,
removed, or materially injured
judicial authorization shall be obtained in a
whereby the court appoints a person,
summary proceeding;
called a receiver, “ to take and keep
possession of the property.
(3) In the absence of sufficient community
2. Separation of property
property, the separate property of both spouses
3. Sole administration of the community
shall be solidarily liable for the support of the
property
family. The spouse present shall, upon proper
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.
SECTION 6: LIQUIDATION OF THE ABSOLUTE no such majority, the court shall decide, taking
COMMUNITY ASSETS AND LIABILITIES into consideration the best interests of said
children.

Article 102. Upon dissolution of the absolute


community regime, the following procedure  Upon the dissolution of the Absolute
shall apply: Property regime, the following
(1) An inventory shall be prepared, listing procedure shall apply:
separately all the properties of the absolute 1. An inventory shall be prepared, listing
community and the exclusive properties of each separately all the properties of the
spouse. absolute community and the exclusive
(2) The debts and obligations of the absolute properties of each
community shall be paid out of its assets. In case 2. The debts and obligations of the
of insufficiency of said assets, the spouses shall absolute community shall be paid out
be solidarily liable for the unpaid balance with of its assets
their separate properties in accordance with the 3. Whatever remains of the exclusive
provisions of the second paragraph of Article 94. properties of the spouses shall
(3) Whatever remains of the exclusive properties thereafter be delivered to each one of
of the spouses shall thereafter be delivered to them.
each of them. 4. The net remainder of the properties of
(4) The net remainder of the properties of the the absolute community shall
absolute community shall constitute its net constitute its net assets
assets, which shall be divided equally between 5. The net remainder of the properties of
husband and wife, unless a different proportion the absolute community shall
or division was agreed upon in the marriage constitute its net assets
settlements, or unless there has been a voluntary 6. Unless otherwise agreed upon by the
waiver of such share provided in this Code. For parties, in the partition of the
purpose of computing the net profits subject to properties, the conjugal dwelling and
forfeiture in accordance with Articles 43, No. (2) the lot on which it is situated shall be
and 63, No. (2), the said profits shall be the adjudicated to the spouse with whom
increase in value between the market value of majority of the common children
the community property at the time of the choose to remain
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 Article 103. Upon the termination of the
accordance with Article 51. marriage by death, the community property shall
(6) Unless otherwise agreed upon by the parties, be liquidated in the same proceeding for the
in the partition of the properties, the conjugal settlement of the estate of the deceased.
dwelling and the lot on which it is situated shall
be adjudicated to the spouse with whom the If no judicial settlement proceeding is
majority of the common children choose to instituted, the surviving spouse shall liquidate
remain. Children below the age of seven years the community property either judicially or
extra-judicially within six months from the death
are deemed to have chosen the mother, unless
of the deceased spouse. If upon the lapse of the CONJUGAL PARTNERSHIP OF
six months period, no liquidation is made, any GAINS
disposition or encumbrance involving the
community property of the terminated marriage
shall be void. SECTION 1: GENERAL PROVISIONS
Should the surviving spouse contract a
subsequent marriage without compliance with Article 105. In case the future spouses agree in
the foregoing requirements, a mandatory the marriage settlements that the regime of
regime of complete separation of property shall conjugal partnership gains shall govern their
govern the property relations of the subsequent property relations during marriage, the
marriage. provisions in this Chapter shall be of
supplementary application.
 Upon the termination of marriage by
The provisions of this Chapter shall also
death, the community property shall
apply to conjugal partnerships of gains already
be liquidated in the same proceeding
established between spouses before the
for the settlement of the estate of the
effectivity of this Code, without prejudice to
deceased
vested rights already acquired in accordance
with the Civil Code or other laws, as provided in
Article 255.
Article 104. Whenever the liquidation of the
community properties of two or more marriages I. Family Code merely suppletory
contracted by the same person before the II. Family Code provisions apply to
effectivity of this Code is carried out conjugal partnership of gains before
simultaneously, the respective capital, fruits and the effectivity thereof
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 Article 106. Under the regime of conjugal
belong, the same shall be divided between the partnership of gains, the husband and wife place
different communities in proportion to the in a common fund the proceeds, products, fruits
capital and duration of each. 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.
Article 107. The rules provided in Articles 88 and General Rule Exception
89 shall also apply to conjugal partnership of That which is None.
gains. brought to the
marriage as his
or her own.
That which each Those that the donor
acquires during or testator indicates
Article 108. The conjugal partnership shall be the marriage by that they belong to
governed by the rules on the contract of gratuitous title; the community
partnership in all that is not in conflict with what property.
is expressly determined in this Chapter or by the That which is Redemption: If the
spouses in their marriage settlements. acquired by money used in the
right of repurchase or
I. Hierarchy of Laws governing CPG: redemption, by redemption is
1. Marriage settlements barter or by conjugal, the spouse
2. Family Code exchange with who previously
3. Civil Code (Provisions on property owned the property
Partnership) belonging to redeemed has the
only one of the obligation to
spouses; and reimburse the
SECTION 2: EXCLUSIVE PROPERTY OF EACH conjugal partnership
SPOUSE of the funds thus
used.
That which is None.
Article 109. The following shall be the exclusive purchased with
property of each spouse: exclusive money
of the wife or of
(1) That which is brought to the marriage as his the husband.
or her own;

(2) That which each acquires during the marriage


by gratuitous title; Article 110. The spouses retain the ownership,
possession, administration and enjoyment of
(3) That which is acquired by right of their exclusive properties.
redemption, by barter or by exchange with
property belonging to only one of the spouses; Either spouse may, during the marriage,
and transfer the administration of his or her
exclusive property to the other by means of a
(4) That which is purchased with exclusive public instrument, which shall be recorded in the
money of the wife or of the husband. registry of property of the place the property is
located.

I. Exclusive Property of Each Spouse:


I. Requisites in the transfer of SECTION 3: CONJUGAL PARTNERSHIP
administration of exclusive property: PROPERTY
- Executed in a public instrument
- Shall be recorded in the registry of
Article 116. All property acquired during the
property of the place where the
marriage, whether the acquisition appears to
property is located
have been made, contracted or registered in the
name of one or both spouses, is presumed to be
Article 111. A spouse of age may mortgage, conjugal unless the contrary is proved.
encumber, alienate or otherwise dispose of his or
her exclusive property, without the consent of
I. Presumption of Conjugality
the other spouse, and appear alone in court to
 All properties acquired DURING the
litigate with regard to the same.
marriage are presumed to be conjugal
unless the contrary is proved.

Article 112. The alienation of any exclusive  Proof of acquisition during marriage is a
property of a spouse administered by the other condition sine qua non
automatically terminates the administration  Proof is not required that the property was
over such property and the proceeds of the acquired with funds of the partnership.
alienation shall be turned over to the owner-
spouse.  The presumption applies even when the
manner in which the property is acquired
does not appear.
Article 113. Property donated or left by will to the
II. Acquisition vs. Registration
spouses, jointly and with designation of
 Jocson vs. CA 170 SCRA 333
determinate shares, shall pertain to the donee-
- “Acquisition of title and registration
spouses as his or her own exclusive property, and
thereof are two different acts. It is well
in the absence of designation, share and share
settled that registration does not
alike, without prejudice to the right of accretion
when proper. confer title but merely confirms one
already existing.”
- The property could have been
Article 114. If the donations are onerous, the acquired by the spouse while still
amount of the charges shall be borne by the single, but was only registered after
exclusive property of the donee spouse, marriage
whenever they have been advanced by the
conjugal partnership of gains.
Article 117. The following are conjugal
Article 115. Retirement benefits, pensions, partnership properties:
annuities, gratuities, usufructs and similar (1) Those acquired by onerous title during the
benefits shall be governed by the rules on marriage at the expense of the common fund,
gratuitous or onerous acquisitions as may be whether the acquisition be for the partnership,
proper in each case. or for only one of the spouses;
(2) Those obtained from the labor, industry, • The nuts of coconut trees are
work or profession of either or both of the natural or industrial fruits
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  Hidden treasure – Art. 438 of NCC
exclusive property of each spouse; - HT belongs to the owner of the
(4) The share of either spouse in the hidden property on which it is found
treasure which the law awards to the finder or - HT found on another property, half
owner of the property where the treasure is for the owner, half for the finder
found; - HT is of interest to science or the
(5) Those acquired through occupation such as arts, State may acquire them at
fishing or hunting; their just price
(6) Livestock existing upon the dissolution of the
partnership in excess of the number of each kind  Occupation
brought to the marriage by either spouse; and - fishing or hunting
(7) Those which are acquired by chance, such as
winnings from gambling or betting. However,  Livestock
losses therefrom shall be borne exclusively by - but only those in excess of the of
the loser-spouse. the number of each kind brought
to the marriage by either spouse

 Onerous title  Chance


- Those in which something is given or - winnings from gambling or betting
promised as a consideration for the - However, losses therefrom shall be
engagement or gift, or some service, borne exclusively by the loser-
interest, or condition is imposed on spouse
what is given or promised, although
unequal to it in value.

 Fruits Article 118. Property bought on installments paid


- as well as the net fruits from the partly from exclusive funds of either or both
exclusive property of each spouse spouses and partly from conjugal funds belongs
- Natural fruits – spontaneous products to the buyer or buyers if full ownership was
of the soil, and the young and other vested before the marriage and to the conjugal
product of animals partnership if such ownership was vested
- Industrial fruits – produced by lands of during the marriage. In either case, any amount
any kind through cultivation or labor advanced by the partnership or by either or both
- Civil fruits – rents of the buildings, the spouses shall be reimbursed by the owner or
prices of leases of lands and other owners upon liquidation of the partnership.
property, and the amount of perpetual
or life annuities or other similar I. Property bought on installments
income. partly from:
a. exclusive funds of either or both When the cost of the improvement made
spouses, by the conjugal partnership and any resulting
b. conjugal funds increase in value are more than the value of the
 Belongs to the buyer or buyers property at the time of the improvement, the
- Full ownership was vested before the entire property of one of the spouses shall
marriage belong to the conjugal partnership, subject to
 Belongs to the conjugal partnership reimbursement of the value of the property of
- Full ownership was vested during the the owner-spouse at the time of the
marriage improvement; otherwise, said property shall be
retained in ownership by the owner-spouse,
likewise subject to reimbursement of the cost of
Article 119. Whenever an amount or credit the improvement.
payable within a period of time belongs to one of
the spouses, the sums which may be collected In either case, the ownership of the entire
during the marriage in partial payments or by property shall be vested upon the
installments on the principal shall be the reimbursement, which shall be made at the time
exclusive property of the spouse. However, of the liquidation of the conjugal partnership.
interests falling due during the marriage on the
principal shall belong to the conjugal I. Accession vs. Reverse Accession
partnership. • ACCESSION: When the costs of
improvement are more than the value
of the property at the time of
 The installments paid in a credit
improvement
payable in installments owing to a
– Shall belong to the conjugal
spouse are owned by the spouse
partnership
regardless of the time the installments
• REVERSE ACCESSION: When the costs
are paid.
of improvement are less than the
 However, the interest falling due
value of the property at the time of
during the marriage belongs to the
improvement
conjugal partnership (because the
– Shall be retained in ownership
fruits of an exclusive property of a
by the owner-spouse
spouse are conjugal)
II. Subject to the following rules:
 In Caltex vs. Felias
Article 120. The ownership of improvements, - Before Article 120 could be applied,
whether for utility or adornment, made on the it is essential that the land must be
separate property of the spouses at the expense owned by one of the spouses
of the partnership or through the acts or efforts before the improvement is
of either or both spouses shall pertain to the introduced.
conjugal partnership, or to the original owner-  Ownership of the entire property shall
spouse, subject to the following rules: vest on the owner-spouse or the
partnership as the case upon the
reimbursement of the improvement.
 Reimbursement time is the time of the vocational course or other activity for self-
liquidation of the CPG. improvement; and
 The value to be paid at the liquidation (9) Expenses of litigation between the spouses
is the value at the time of the unless the suit is found to groundless.
improvement
If the conjugal partnership is insufficient
to cover the foregoing liabilities, the spouses
SECTION 4: CHARGES UPON AND shall be solidarily liable for the unpaid balance
OBLIGATIONS OF THE CONJUGAL with their separate properties.
PARTNERSHIP

I. TAKE NOTE:
Article 121. The conjugal partnership shall be – Spouses as third person who
liable for: may execute sale.
– Debt that does not redound to
(1) The support of the spouse, their common benefit of family.
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; Article 122. The payment of personal debts
(2) All debts and obligations contracted during contracted by the husband or the wife before or
the marriage by the designated administrator- during the marriage shall not be charged to the
spouse for the benefit of the conjugal conjugal properties partnership except insofar as
partnership of gains, or by both spouses or by they redounded to the benefit of the family.
one of them with the consent of the other;
(3) Debts and obligations contracted by either Neither shall the fines and pecuniary
spouse without the consent of the other to the indemnities imposed upon them be charged to
extent that the family may have benefited; the partnership.
(4) All taxes, liens, charges, and expenses,
including major or minor repairs upon the However, the payment of personal debts
conjugal partnership property; contracted by either spouse before the marriage,
(5) All taxes and expenses for mere preservation that of fines and indemnities imposed upon
made during the marriage upon the separate them, as well as the support of illegitimate
property of either spouse; children of either spouse, may be enforced
(6) Expenses to enable either spouse to against the partnership assets after the
commence or complete a professional, responsibilities enumerated in the preceding
vocational, or other activity for self- Article have been covered, if the spouse who is
improvement; bound should have no exclusive property or if it
(7) Antenuptial debts of either spouse insofar as should be insufficient; but at the time of the
they have redounded to the benefit of the family; liquidation of the partnership, such spouse shall
(8) The value of what is donated or promised by be charged for what has been paid for the
both spouses in favor of their common purpose above-mentioned.
legitimate children for the exclusive purpose of
commencing or completing a professional or
I. Rules concerning personal debts the other spouse may assume sole powers of
contracted during marriage: administration. These powers do not include
1. It shall not be charged to the conjugal disposition or encumbrance without authority of
partnership EXCEPT insofar as they the court or the written consent of the other
redounded to the benefit of the spouse. In the absence of such authority or
family. consent, the disposition or encumbrance shall be
2. If the spouse has no exclusive void. However, the transaction shall be
property it may be charged to the construed as a continuing offer on the part of the
charged to the conjugal partnership consenting spouse and the third person, and may
subject to the provision. be perfected as a binding contract upon the
acceptance by the other spouse or authorization
by the court before the offer is withdrawn by
Article 123. Whatever may be lost during the either or both offerors.
marriage in any game of chance or in betting,
sweepstakes, or any other kind of gambling I. Administration of Conjugal
whether permitted or prohibited by law, shall be Partnership Property
borne by the loser and shall not be charged to the • Shall belong to both spouse only
conjugal partnership but any winnings • In case of disagreement, the husbands
therefrom shall form part of the conjugal decision shall prevail
partnership property. • Subject to recourse to the court by the
wife for a proper remedy
• Gambling losses shall be borne by the • In case if he spouse is incapacitated,
losing spouse’ separate property, the other spouse may assume the sole
• winnings shall accrue to the community power of administration
property. • Sale by the spouse of the conjugal
property without the consent of the
other is VOID
SECTION 5: ADMINISTRATION OF THE • Sale of the conjugal property by the
CONJUGAL PARTNERSHIP PROPERTY husband without the consent of the
wife before the affectivity of the
family code is merely VOIDABLE.
Article 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 Article 125. Neither spouse may donate any
recourse to the court by the wife for proper conjugal partnership property without the
remedy, which must be availed of within five consent of the other. However, either spouse
years from the date of the contract may, without the consent of the other, make
implementing such decision. moderate donations from the conjugal
partnership property for charity or on occasions
In the event that one spouse is of family rejoicing or family distress.
incapacitated or otherwise unable to participate
in the administration of the conjugal properties,
GR: Neither spouse may donate any and use the fruits or proceeds thereof to satisfy
conjugal partnership property without the latter’s share.
the consent of the other
XPN: Other spouse may donate
moderate donations even without the I. Separation in Fact:
consent of the other, for charity or on GR: Not affect the regime.
occasions family rejoicing or distress. XPNS:
• No support for spouse who left the
conjugal home or refuses to live
SECTION 6: DISSOLUTION OF CONJUGAL therein without just cause.
PARTNERHIP REGIME • Judicial authorization may be
obtained by one spouse if
consent of the other is needed
Article 126. The conjugal partnership terminates: for any transaction.
• On separate property of both
(1) Upon the death of either spouse; spouses when conjugal
property is not sufficient.
(2) When there is a decree of legal separation;

(3) When the marriage is annulled or declared


void; or Article 128. If a spouse without just cause
abandons the other or fails to comply with his or
(4) In case of judicial separation of property her obligation to the family, the aggrieved
during the marriage under Articles 134 to 138. spouse may petition the court for receivership,
for judicial separation of property, or for
authority to be the sole administrator of the
Article 127. The separation in fact between conjugal partnership property, subject to such
husband and wife shall not affect the regime of precautionary conditions as the court may
conjugal partnership, except that: impose.

(1) The spouse who leaves the conjugal home or The obligations to the family mentioned
refuses to live therein, without just cause, shall in the preceding paragraph refer to marital,
not have the right to be supported; parental or property relations.
(2) When the consent of one spouse to any
transaction of the other is required by law, A spouse is deemed to have abandoned
judicial authorization shall be obtained in a the other when he or she has left the conjugal
summary proceeding; dwelling without intention of returning. The
(3) In the absence of sufficient conjugal spouse who has left the conjugal dwelling for a
partnership property, the separate property of period of three months or has failed within the
both spouses shall be solidarily liable for the same period to give any information as to his or
support of the family. The spouse present shall, her whereabouts shall be prima facie presumed
upon petition in a summary proceeding, be given to have no intention of returning to the conjugal
judicial authority to administer or encumber any dwelling.
specific separate property of the other spouse
I. Remedies of Aggrieved Spouse in case (6) Unless the owner had been indemnified from
of Abandonment: whatever source, the loss or deterioration of
(a) Receivership – a remedy movables used for the benefit of the family,
availed of by one who has interest in a belonging to either spouse, even due to
property or fund which is in danger of fortuitous event, shall be paid to said spouse
being lost, removed, or materially injured from the conjugal funds, if any.
whereby the court appoints a person, (7) The net remainder of the conjugal
called a receiver, “ to take and keep partnership properties shall constitute the
possession of the property. profits, which shall be divided equally between
(b) Separation of property husband and wife, unless a different proportion
(c) Sole administration of the or division was agreed upon in the marriage
community property settlements or unless there has been a voluntary
waiver or forfeiture of such share as provided in
this Code.
SECTION 6: LIQUIDATION OF THE CONJUGAL (8) The presumptive legitimes of the common
PARTNERSHIP ASSETS AND LIABILITIES children shall be delivered upon the partition in
accordance with Article 51.
Article 129. Upon the dissolution of the conjugal (9) In the partition of the properties, the
partnership regime, the following procedure conjugal dwelling and the lot on which it is
shall apply: situated shall, unless otherwise agreed upon by
(1) An inventory shall be prepared, listing the parties, be adjudicated to the spouse with
separately all the properties of the conjugal whom the majority of the common children
partnership and the exclusive properties of each choose to remain. Children below the age of
spouse. seven years are deemed to have chosen the
(2) Amounts advanced by the conjugal mother, unless the court has decided otherwise.
partnership in payment of personal debts and In case there is no such majority, the court shall
obligations of either spouse shall be credited to decide, taking into consideration the best
the conjugal partnership as an asset thereof. interests of said children.
(3) Each spouse shall be reimbursed for the use
of his or her exclusive funds in the acquisition of I. Liquidation of CPG:
property or for the value of his or her exclusive 1. Inventory of all the properties;
property, the ownership of which has been 2. Restitution of advances made to each
vested by law in the conjugal partnership. of the spouses;
(4) The debts and obligations of the conjugal 3. Reimbursement for use of exclusive
partnership shall be paid out of the conjugal funds;
assets. In case of insufficiency of said assets, the 4. Debts and obligations of the CP are
spouses shall be solidarily liable for the unpaid paid;
balance with their separate properties, in 5. Delivery of exclusive properties;
accordance with the provisions of paragraph (2) 6. Payment of losses and deterioration of
of Article 121. movables belonging to each of the
(5) Whatever remains of the exclusive properties spouses;
of the spouses shall thereafter be delivered to 7. Division of the net conjugal
each of them. partnership;
8. Delivery of the children’s presumptive to the rules of evidence. In case of doubt as to
legitimes; which partnership the existing properties
9. Adjudication of conjugal dwelling and belong, the same shall be divided between the
custody of children. different partnerships in proportion to the
capital and duration of each.

Article 130. Upon the termination of the


marriage by death, the conjugal partnership Article 132. The Rules of Court on the
property shall be liquidated in the same administration of estates of deceased persons
proceeding for the settlement of the estate of shall be observed in the appraisal and sale of
the deceased. property of the conjugal partnership, and other
matters which are not expressly determined in
If no judicial settlement proceeding is this Chapter.
instituted, the surviving spouse shall liquidate
the conjugal partnership property either
judicially or extra-judicially within six months Article 133. From the common mass of property
from the death of the deceased spouse. If upon support shall be given to the surviving spouse
the lapse of the six-month period no liquidation and to the children during the liquidation of the
is made, any disposition or encumbrance inventoried property and until what belongs to
involving the conjugal partnership property of them is delivered; but from this shall be
the terminated marriage shall be void. deducted that amount received for support
which exceeds the fruits or rents pertaining to
Should the surviving spouse contract a them.
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.

 If dissolution is due to death of the


spouse, liquidation in the same
proceeding for the settlement of the
estate of the deceased.

Article 131. Whenever the liquidation of the


conjugal partnership 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 partnership shall be determined
upon such proof as may be considered according
SEPARATION OF PROPERTY OF THE (6) That at the time of the petition, the spouses
SPOUSES AND ADMINISTRATION OF have been separated in fact for at least one year
and reconciliation is highly improbable.
COMMON PROPERTY BY ONE
SPOUSE DURING THE MARRIAGE In the cases provided for in Numbers (1),
(2) and (3), the presentation of the final
judgment against the guilty or absent spouse
shall be enough basis for the grant of the decree
Article 134. In the absence of an express of judicial separation of property.
declaration in the marriage settlements, the
separation of property between spouses during
the marriage shall not take place except by  Dela Cruz vs. Dela Cruz
judicial order. Such judicial separation of To be legally declared as to have
property may either be voluntary or for abandoned the conjugal home, one must
sufficient cause. have willfully and with intention of not
coming back and perpetual separation.
There must be real abandonment
 Even if the spouses did not enter into any
and not mere separation. In fact, the
marriage settlement, otherwise known as
husband never failed to give monthly
prenuptial agreement, they can still have a
financial support as admitted by the wife.
separation of property by seeking a judicial
This negates the intention of coming home
order.
to the conjugal abode. The plaintiff even
 Two kinds of judicial separation of
testified that the husband “paid short
property: Voluntary and Involuntary.
visits” implying more than one visit.
There is no evidence on the record
to show that he has squandered the
Article 135. Any of the following shall be conjugal assets. The refusal or failure of the
considered sufficient cause for judicial husband as administrator of the conjugal
separation of property: partnership to inform the wife of the
(1) That the spouse of the petitioner has been progress of the family businesses does not
sentenced to a penalty which carries with it civil constitute in abuse.
interdiction;
(2) That the spouse of the petitioner has been
judicially declared an absentee;
(3) That loss of parental authority of the spouse Article 136. The spouses may jointly file a verified
of petitioner has been decreed by the court; petition with the court for the voluntary
(4) That the spouse of the petitioner has dissolution of the absolute community or the
abandoned the latter or failed to comply with his conjugal partnership of gains, and for the
or her obligations to the family as provided for in separation of their common properties.
Article 101;
(5) That the spouse granted the power of All creditors of the absolute community
administration in the marriage settlements has or of the conjugal partnership of gains, as well as
abused that power; and the personal creditors of the spouse, shall be
listed in the petition and notified of the filing
A. a different proportion or division has
been agreed upon in the marriage
thereof. The court shall take measures to protect
settlement
the creditors and other persons with pecuniary
B. there has been a valid waiver of such
interest.
share as provided in the family code

Article 137. Once the separation of property has Article 138. After dissolution of the absolute
been decreed, the absolute community or the community or of the conjugal partnership, the
conjugal partnership of gains shall be liquidated provisions on complete separation of property
in conformity with this Code. shall apply.

During the pendency of the proceedings


for separation of property, the absolute  The mere filing of the petition to initiate
community or the conjugal partnership shall pay the proceeding shall not automatically
for the support of the spouses and their children. result in the dissolution of the absolute
community or conjugal partnership of
gains.
I. What is civil interdiction?  The finality of the decision of the court
- Civil interdiction is a legal restraint upon decreeing the separation which dissolves
a person incapable of managing his the same. This is the only time that the
estate, because of mental incapacity, separation of property applies. (Refer to
from signing any deed or doing any act Art 212-215)
to his own prejudice, without the
consent of his curator or interdictor.
- Civil interdiction deprives the following
rights of the offender: Parental Article 139. The petition for separation of
authority, guardianship as to the property and the final judgment granting the
person or property of any ward, marital same shall be recorded in the proper local civil
authority, manage his properties, registries and registries of property.
dispose of such property by any act or
conveyance intervivos.
Article 140. The separation of property shall not
II. Liquidation prejudice the rights previously acquired by
- Must be made in conformity with the creditors.
Family Code.
I. Art 139-140
PROPERTY REGIME LIQUIDATION PROCESS Question:
Absolute Community Article 102 If Spouse A claimed that a parcel of lot is
Conjugal Partnership Article 129 her separate property but she was not able
to register it to the Civil Registries of
- Must be equal, unless: Properties. Would the claim of Spouse A be
correct that the parcel of land is her Article 142. The administration of all classes of
separate property? exclusive property of either spouse may be
Answer: transferred by the court to the other spouse:
No, the claim of spouse A is not correct.
If A did not register it to the proper Civil (1) When one spouse becomes the guardian of
Registries of Property it will belong to the the other;
Absolute Community property of the (2) When one spouse is judicially declared an
spouses. Proper registration of properties absentee;
will give aid in the determination in which (3) When one spouse is sentenced to a penalty
property regime the said property belongs. which carries with it civil interdiction; or
(4) When one spouse becomes a fugitive from
justice or is in hiding as an accused in a criminal
Article 141. The spouses may, in the same case. If the other spouse is not qualified by
proceedings where separation of property was reason of incompetence, conflict of interest, or
decreed, file a motion in court for a decree any other just cause, the court shall appoint a
reviving the property regime that existed suitable person to be the administrator.
between them before the separation of property
in any of the following instances: I. Guardian
- When a spouse is judicially appointed
(1) When the civil interdiction terminates; guardian of his or her spouse, he or she
(2) When the absentee spouse reappears; may likewise be constituted as the
(3) When the court, being satisfied that the administrator of the state of the other
spouse granted the power of administration in spouse. This is so because a spouse is
the marriage settlements will not again abuse already obliged by law to live with and take
that power, authorizes the resumption of said care of his or her spouse.
administration; - One example is, when the wife unable to
(4) When the spouse who has left the conjugal manage her extra exclusive property due
home without a decree of legal separation to her mental or any disability, the court
resumes common life with the other; will prioritize the other spouse.
(5) When parental authority is judicially restored
to the spouse previously deprived thereof; II. Another Person As Guardian
(6) When the spouses who have separated in fact - If the other spouse is not qualified by
for at least one year, reconcile and resume reason of incompetence, conflict of
common life; or interest, or any other cause, the Court shall
(7) When after voluntary dissolution of the appoint a suitable person to be the
absolute community of property or conjugal administrator.
partnership has been judicially decreed upon the
joint petition of the spouses, they agree to the III. Absentee
revival of the former property regime. No - Example of Absentee is, If one spouse
voluntary separation of property may thereafter traveled on-board on a ship and it so
be granted. happened that the ship sank and no news
The revival of the former property regime about the location of the passenger, with
shall be governed by Article 67. in two years after to the incident, the
husband may file or the court may transfer siblings if any, provided that she/he is suitable
through his petition the exclusive property enough to manage the property.
to the husband.

IV. Civil Interdiction


- It is accessory penalty that deprives an
offender of his/her rights to manage his
property. The person will loss his/her
parental authority, guardianship, marital
authority and his/her right to manage
his/her property.

V. Fugitive From Justice


- A fugitive from justice refers to one who
having committed or being accused of a
crime in one jurisdiction is absent for any
reason from that jurisdiction; specifically,
one who flees to avoid punishment.
- In case of Ochida Vs Cabarroguis, the lady
lawyer involved in this case was charged
with multiple crimes of estafa in manila and
there was 5 pending warrants of arrest
against her. She was able to flee the place
which was jurisdiction in her case and so
she was considered a FUGITIVE FROM
JUSTICE.
- Hence, because she is considered a FUGITIVE
FROM JUSTICE, her spouse may file petition
before the court to transfer the
administration of her exclusive properties to
him as she is already unable to manage her
properties.

Question:
In case both spouses Judicially Declared
absent and both sentenced to penalty with civil
interdiction, who should have authorized to
manage the exclusive property of the both
spouses?

Answer:
In case both spouses were judicially declared
absent and sentenced to penalty of civil
interdiction the court may appoint one of their

You might also like