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and

PROPERTY RELATIONS

 The system of property relationship is

applicable only to married persons and is
used to distinguish a conjugal or community
property from an exclusive property and
governed in the following order:
• By marriage settlements executed
before the marriage
• By the provision of law
• By the local custom

TYPES of
PROPERTY RELATIONS

1. Absolute Community of
Properties (ACoP)
2. Conjugal partnership of gains (CPG)
3. Complete separation of property
4. Any other regime

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GENERAL RULE IN
PROPERTY RELATIONS

In the event no agreement is adopted

by the couple on the system of
property relations, the rule is:

Date of Marriage Property Relationship

• Before August CPG
3, 1988
• On or after August ACoP
3, 1988

ABSOLUTE COMMUNITY
OF PROPERTY (ACoP)

 The most common regime in Philippine

marital property relations. If the spouses
do not have a valid marriage settlement,
this system will govern the property
relations of the people – keeping with
Philippine custom and family unity.
 the provisions on co-ownership shall
apply between the spouses.

ABSOLUTE COMMUNITY
OF PROPERTY (ACoP)

 property owned by the spouses before or

upon celebration of marriage and brought
into marriage and includes property
inherited or received as donation before the
marriage.
 property acquired during marriage will
be pressumed to belong to the community,
unless it can be proven to be exclusive
property

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COMMUNITY PROPERTY
UNDER ACoP

 Family home
 Proceeds of life insurance (if included in
the gross estate)
• Exclusive property (if premium was paid
from exclusive funds)
• Conjugal property ( if premium was paid
from conjugal funds of income of either
spouse during marriage)
 Claim against insolvent person is either
exclusive or conjugal property

EXCLUSIVE PROPERTY
UNDER ACoP

 property acquired during marriage by

gratuitous title by either spouse and the fruits
thereon unless expressly provided that it is a
part of community.
 property for personal and exclusive use of
either spouse – jewelry (not inherited or
received as donation).
 property acquired during marriage by
purchase with exclusive money or by exchange
with exclusive property shall be considered
exclusive property.

CONJUGAL PARTNERSHIP
OF GAINS (CPG)

 One of the property relations between

spouses, under which the husband and wife
place in a common fund the proceeds, products,
fruits and income from separate properties and
those acquired by either or both spouses
through their efforts and upon dissolution of
marriage or partnership, the net gaians or
benefits obtained by either or both spouses shall
be divided equally between them, unless
otherwise agreed in the marriage settlements.

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EXCLUSIVE PROPERTY
UNDER CPG

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 or by exchange with property
belonging to only one of the spouses
4. That which is purchased with the exclusive
money of the wife or of the husband.

CONJUGAL PROPERTY
UNDER CPG

1. That which is acquired by onerous title during

the marriage at the expense of the common
fund
2. That which is obtained by labor, industry or
work of either or both of the spouses
3. The fruits received or due during the marriage
coming from common property or exclusive
property of each spouses
4. The share in the hidden treasure discovered
during marriage
5. Improvements o the separate property of the
spouses at the expense of the partnership.

CONJUGAL DEDUCTIONS

 Whether under absolute community of

property or conjugal partnership of gains:

1. The support of spouses to their common

children and legitimate children of their
spouses
2. All debts and obligations contracted during
marriage
3. Debts and obligations contracted by either
spouse without the consent of the other
which the family may have benefited

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CONJUGAL DEDUCTIONS

4. All taxes, lien, charges and expenses upon

conjugal property
5. All taxes and expenses for mere
preservation made during marriage upon
separate property of either spouse.
6. Expenses to enable either spouse to
commence or complete a professional,
vocational other activity for self
improvement.
7. Debts before marriage of either spouse
that have redounded to benefit of the
family.

CONJUGAL DEDUCTIONS

8. The value of what is donated or promised

by both spouses in favor of their common
legitimate children
9. Expenses of litigation between spouses,
unless the suit is found to be groundless.

COMPLETE SEPARATION
OF PROPERTY

 The spouses shall be governed by complete

separation of the property – if the future
spouses agree in the marriage settlements
that their property relations during the
marriage shall be governed by the regime
of separation of property.
 Both spouses shall bear the family
expenses in proportion to their income
 The liability of the spouses to creditors for
family expenses shall, however, be solidary.

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PROPERTY REGIME OF UNIONS

WITHOUT MARRIAGE
The following rules applies for a man and
a woman who live exclusively as husband
and wife without the benefit of marriage
or under a void marriage :
1. Wages and salaries shall be owned by them
in equal shares
2. Property acquired by both of them through
their work or industry shall be governed by
the rules on co-ownership
3. Neither party can encumber or dispose by
act inter vivos his or her share in the
property acquired during cohabitation.

Decedent, a Philippine citizen and resident of Pasay

City, died leavig the following:
C Rest house in Quezon inherited
A from his father during marriage 3,500,000
S
Car received as gift from from
E
mother before marriage 1,000,000
P Commercial land received as gift
R from from mother before marriage 6,000,000
O Income from the commercial land 800,000
B
L
Building (wife’s paraphernal property) 1,800,000
E Income from exclusive property of his
M spouse during marriage 300,000
Jewelry owned before marriage 400,000
1
Clothes of his wife, purchased with
his own income 200,000
Other properties at time of death 1,000,000

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1. Under the regime of conjugal partnership of gains, how

C much is the decedent’s gross exclusive properties ?
A
S
E
2. How much is the gross conjugal properties ?
P
R
O
B 3. Under the regime of absolute community of property,
L how much is the decedent’s gross exclusive properties ?
E
M
4. Under the regime of absolute community of property,
1 how much is the gross conjugal properties ?

A resident alien, single died intestate on

December 1, 2018 leaving the following:
C
A House & lot, USA (Family home) 20,000,000
S Investment in stock-Philippines 7,000,000
E Investment in stock-USA 9,000,000
P Investment in bonds-USA (85% of
R business of corporation is in Phils 6,000,000
O Cash in bank – Philippines 3,000,000
B
L Cash on hand – Philippines 500,000
E Accounts receivable – debtor leaving in
M the USA (fully uncollectible) 2,000,000
2 Vehicles in Manila 8,000,000
Funeral expenses 900,000
Judicial expenses 3,000,000
Continued next slide

Medical expenses 4,000,000

C
A Unpaid 2017 income taxes-
S Philippines 1,300,000
E Losses on theft –
P December 2018 700,000
R Devise to QC government for
O – children’s playground 600,000
B
L Receivable under RA 4917 500,000
E
M

1. How much is the net taxable estate ?

2. How much is the amount of estate tax due ?

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