TITLE IV

PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

Chapter 1. General Provisions

As provided under Article 1 of the Family Code “Marriage is a special

contract of permanent union between a man and a woman xxx whose nature,

consequences, and incidents are xxx not subject to stipulation, except that marriage

settlements may fix the property relations during the marriage within the limits

provided by the Family Code”.

Based on the foregoing, marriage seeks to establish as much as possible the

complete union of husband and wife. It is characterized by “oneness”.

GR: The husband and the wife cannot sell property to each other.

XPN: a) When a separation of property was agreed upon in the

marriage settlement.

b) When there has been a judicial separation of property.

(Article 1490 of the Civil Code)

However, the law recognizes that as to their property relations, the husband

and the wife shall primarily be governed by their marriage settlement. Anent

thereto, Article 74 of the Family Code provides:

ARTICLE 74. The property relations between husband and wife shall be
governed in the following order:

1) By marriage settlements executed before the marriage

 Marriage settlement is commonly known as prenuptial agreement or an

antenuptial contract. And in order for marriage settlement to be valid, it must

comply with the requisites laid down by law.

  Parties must exercise high degree of good faith and candor in all matters

stipulated in the contract since they can stipulate or agree on any arrangement in

their marriage settlement provided that it is not contrary to law and public policy

and is within the limits provided in the Family Code.

Example: Prior to their marriage, Juan and Maria executed an

antenuptial agreement which provides that an absolute community of

property will govern their property relations. Moreover, stated therein

was the agreement that said regime will commence only after their first

anniversary as husband and wife.

The foregoing circumstance indicates an invalid marriage

settlement being contrary to law. Marriage settlement will start at the

precise moment of the celebration of marriage.

2) By the provisions of the Family Code

 If there is no marriage settlement agreed upon or if the same is void, then

the provisions of the family code will apply particularly the absolute

community of property.

3) By the local customs

 When the parties stipulate in their marriage settlement that local custom shall

apply.

 When that the absolute community of property regime shall not govern their

property relations but fail to stipulate what property regime will be applied

ARTICLE 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
marriage settlement, or when the regime agreed upon is void, the system of
absolute community of property as established in the Family Code shall
govern.

 Types of Property Regime

 1. Absolute Community Property (ACP)

2. Conjugal Partnership of Gains (CPG)

3. Complete Separation of Property (CSP)

GR: If future spouses

 failed to indicate the property regime that will govern = ACP

 marriage settlement executed by the parties is void = ACP

XPN:

 marriage is terminated by death of one spouse and the = CSP

the surviving spouse marries again without initiating any

judicial or extrajudicial settlement of properties of his/her

previous spouse within one (1) year from the death the

deceased spouse

4. Other regime (The parties are allowed by law to design their own property

regime PROVIDED that it is not in violation of any law)

Example: Juan and Maria indicated in their marriage settlement that the salaries earned during

marriage will be their own exclusive property but any real estate purchased during marriage using

their salaries will be considered commonly owned. (Mixed-Up Property Regime)

ARTICLE 76. In order that any modification in the marriage settlement may
be valid, it must be made before the celebration of the marriage, subject to the
provisions of Art. 66, 67, 128, 135 and 136.

GR: Any modification in marriage settlement must be made before the

celebration of marriage.

XPN: Can be made after the marriage ceremony, but such post-marriage

modification shall need judicial approval and should only refer to

instances:
 Only via court a) When spouses in legal separation proceeding reconciled after judicial decree
order recorded in
of legal separation has been rendered. (Art.66)
proper civil
registries. b) Revival of former property regime upon reconciliation in legal separation

proceeding. (Art.67)
Upon issuance by
court of a decree c) In cases of abandonment or failure to comply with his/her marital
of judicial
separation of obligations, on petition of the agrrieved spouse.(Art.128)
property
d) Further grounds for judicial separation of property. (Art. 135)

e) When spouses file voluntary and verified petition in court to modify their

property regime into a separate community of property regime. (Art. 136)

ARTICLE 77. The marriage settlements and any modification thereof shall
be in writing, signed by the parties and executed before the celebration of
marriage. They shall not prejudice third persons unless they are registered in
the local civil registry where the marriage contract is recorded as well as in
the proper registries of properties.

 In order to be valid and enforceable, the following REQUISITES OF

MARRIAGE SETTLEMENT must be present, to wit:

1. Must be in writing

- not only for the purpose of enforceability but more importantly for its validity. Hence,

oral marriage settlement = void / cannot be ratified by any claim or partial execution or

absence of objection.

2. Must be signed by the parties

- Both parties must have signed freely, voluntarily, intelligently, and preferably upon

competent and independent advice. The validity of the marriage settlement may still be

considered if the disadvantaged spouse appears to have understanding about the nature

and consequences of their agreement.

3. Made prior to the celebration of marriage

- Pre/ante (before) + nuptial (marriage) = must be executed before marriage and its

effectivity will start at the precise moment of the celebration of marriage.

 In order to bind third persons, marriage settlement must be:

 1. Registered in the local civil registrar where the marriage contract is

recorded;

2. Registered in the proper registries of property.

Example: Juan owned two real estate property located in Bauan and

Calaca. Prior to their marriage, Juan and Maria stipulated in their

marriage settlement that only the property in Calaca will be part of their

absolute community of property. Hence, by virtue of said marriage

settlement Bauan property is deemed excluded from the community

property.

A.) Both parties agreed to the said arrangement and put the same into

writing. However, they failed to affix their signatures. Henceforth, the

marriage settlement is considered invalid for failure to comply with all

the essential requisites.

B.) Prior to Juan and Maria’s marriage, Juan incurred debt from his friend

Pedro. Juan and Maria, however, failed to register their marriage

settlement in civil registrar and registry of property. The money he got

from Pedro was used personally by Juan without the knowledge of Maria

and did not even redound to their family’s benefit. Pedro sought

recourse from the Court and obtained a favorable judgment. Wherefore,

for failure to comply with the registration requirement, Pedro will not be

prejudiced by the marriage settlement and the property located in Bauan

can be the subject of execution.

ARTICLE 78. A minor who according to law may contract marriage may
also execute his or her marriage settlements, but they shall be valid only if the
persons designated in Article 14 give consent to the marriage are made parties
to the agreement subject to the provisions of Title IX of this Code.

 The above provision is deemed impliedly repealed considering that no minor

now may contract a valid marriage. Therefore, an 18-year old person

 deciding to marry may validly execute a marriage settlement even without

obtaining the consent of parents.

ARTICLE 79. For the validity of any marriage settlements 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
guarding appointed by a competent court to be made a party thereto.

 Civil interdiction, as provided under the Revised Penal Code, 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

marital authority, of the right to manage his property by any act or any act of

conveyance inter vivos.

GR: Any individual upon reaching 18 years of age has legal capacity which makes

him qualified or responsible for all acts of his civil life.

XPN: When a sentence of civil interdiction has been pronounced or who is subject to

any other disability. (Indispensable for the guardian, appointed by the

court, to be made a party to the written marriage settlement.)

Article 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.

 If contracting parties:

Both Filipino
 GR: the property relations will be governed by Philippines laws in the absence of
any agreement. (applies even if they married or resided abroad)

XPN: Real Property and personal property subject to the law of the
country where it is situated. (Art. 16 of the Civil Code)

Article 81. Everything stipulated in the settlements or contracts referred to in

the preceding articles in consideration of a future marriage, including
donations between the prospective spouses made therein, 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.

 Marriage is a condition sine qua non for the efficacy of marriage

settlement. If the marriage does not take place, the marriage settlement is

generally rendered void.

 If the provisions are invalid but do not affect the rest of the provisions,

only the invalid provisions will be rendered ineffectual. On the same

vein, stipulations that do not depend upon the celebration of marriage

shall be valid.

Example: Juan and Maria executed a marriage settlement. Stipulated

therein are the following, viz:

1.) That Juan will donate the lot located in Bauan to Maria on their first year

anniversary.

2.) That the educational and financial support of their son will be solely

supported by Juan.

Thus, despite the invalidity of the first stipulation the second subsequent

provision can still stand for being independent upon the celebration of

marriage.

Chapter 2. Donations by Reason of Marriage

Donation by reason of marriage is known as Donation Propter Nuptias.

Donation is an act of pure liberality on the part of the donor. It is not negotiated.

Neither is donation a “settlement” itself.

 If one of the would-be spouse wants to validly make a donation propter

nuptias, the following requires must concur:

1. There must be a valid marriage settlement

- Must comply with the requisites laid down by law. If the donation propter nuptias is not
in a marriage settlement as the same was never executed by the parties, making a
donation is useless because in the absence of marriage settlement, the absolute
community of property will govern the property relations of marriage.

2. The marriage settlement must stipulate a property regime other than the
absolute community of property;

- Also useless if the property regime is ACP because spouses therein are co-owners

3. The donations contained in the marriage settlement must not be more

than one-fifth of his or her present property;

-this will not apply if the donation propter nuptias is not included in a marriage settlement
but contained in a separate deed. The Civil Code then applies. More than one-fifth
contemplates a situation are not yet married.

4. The donation must be accepted by the would-be spouse;

-Donation is an act of liberality.It is ideal and proper that the giving of donation propter
nuptias should not be discussed to prevent the baragaining point. The done must not have
any part in the donor’s decision of giving such donation.

5. Must comply with the requisites established in Title III (Donation) Book
III (Different Modes of Acquiring Ownership) of the Civil Code.

Article 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.

 It is indispensable that such a donation must be made prior to the

celebration of marriage. This can be contained in marriage settlement.

 Donations excluded are those:

1. Made in favor of spouses after the celebration of marriage.

Example: A deed of donation executed after their first year anniversary.

 2. Executed in favor of the future spouses but not in consideration of

marriage.

Example: A deed of donation executed before marriage by one spouse which

provides that the marriage would have to be childless.

3. Granted to persons other than the spouses even they may be founded on

the marriage.

Example: Donation was not made in favor of the spouse but rather to those who acted as

her parents.

Article 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.

 Among the pertinent provisions of the Civil Code in relation to

donations are the following, viz:

Art. 745. The donee must accept the donation personally, or through an
authorized person with a special power for the purpose, or with a general
and sufficient power; otherwise, the donation shall be void. 

Art. 746. Acceptance must be made during the lifetime of the donor and
of the donee. 

xxx

Art. 748. The donation of a movable may be made orally or in writing.

An oral donation requires the simultaneous delivery of the thing or of the

document representing the right donated.

If the value of the personal property donated exceeds five thousand

pesos, the donation and the acceptance shall be made in writing,
otherwise, the donation shall be void. 

Art. 749. In order that the donation of an immovable may be valid, it

must be made in a public document, specifying therein the property
donated and the value of the charges which the donee must satisfy.

The acceptance may be made in the same deed of donation or in a

separate public document, but it shall not take effect unless it is done
during the lifetime of the donor.
 If the acceptance is made in a separate instrument, the donor shall be
notified thereof in an authentic form, and this step shall be noted in both
instruments. 

Article 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.

 There must be a property regime other than absolute community of property.

Article 84, particularly the prohibition among spouses to donate more than

one-fifth of their present property, would only apply if the donation is

contained in marriage settlement. Therefore, if a donation is provided in a

separate deed, the Civil Code shall govern specifically:

Article 750. The donation may comprehend all the present property of

the donor, or part thereof, provided he reserves, in full ownership or in
usufruct, sufficient means for the support of himself, and of 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 in petition of any person affected.

The above provision is, however, subject to the provision of Article 752 of

the Civil Code which provides:

Article 752. The provisions of article 750 notwithstanding, no person

may give or receive, by way of donation, more than he may give or
receive by will.

The donation shall be inofficious in all that it may exceed this limitation.

Since donations are act of liberality, the donee must not have any part in the

donor’s decision of giving such donation.

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.
  If the donation is subject of an encumbrance, the donation is still valid. In

such a case, the donee’s rights are subject to the encumbrance. To further

elucidate, the done must not be liable for the deficiency of the unpaid debt of

the donor when the object of donation has been foreclosed to answer.

However, if the property is sold and the money obtained is more than the

amount of the liability of the debtor, the excess shall properly go to the

donee.

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;

a) Marriage is not celebrated - donation may or may not be

revoked.

b) Judicially declared void ab initio (there must be a judicial declaration

that the marriage is void and not mere fact that it is provided by law
as void marriage)

1. Art. 40 (void for failure to obtain judicial declaration of nullity of

previous marriage prior to contracting a subsequent marriage)

-revoked by operation of law if the donee spouse contracted in bad faith.

- may or may not be revoked by donor, if the donee is in good faith,

2. Art. 44 in relation to Art. 41 (requirement of obtaining judicial

declaration of presumptive death before entering into subsequent
marriage)

-revoked by operation of law if both of the contracting parties acted in

bad faith to obtain the judicial declaration

3. All other cases where marriage has been judicially declared void
other than the foregoing.

- may or may not be revoked by donor, regardless of good or bad faith

4. In bigamous marriage, where the subsequent spouse made a

donation to the his/her spouse

-may or may not be revoked by the subsequent spouse

 5. If both contracting parties are in good faith
-may or may not be revoked by donor

NOTE: Revocation of donation must be made after the finality of the judicial
declaration of nullity

(2) When the marriage takes place without the consent of the parents or
guardian, as required by law;
-may or may not be revoked by the donor. In this case, no requirement of having the marriage
judicially annulled first. The donor may revoked the donation within five years from the time
he obtained knowledge about absence of consent (must be known to the donor, after the
marriage)

(3) When the marriage is annulled, and the donee acted in bad faith;
- revoked by operation of law in any of the grounds in Article 45 except Art. 45(6) , if the donee
is in bad faith

-may or may not be revoked by donor, if the ground of annulment is Art. 45(6)

(4) Upon legal separation, the donee being the guilty spouse;

-may or may not be revoked by donor, if since there is a probability that spouses may
reconcile

(5) If it is with a resolutory condition and the condition is complied

with;

- may or may not be revoked by the donor

(6) When the donee has committed an act of ingratitude as specified by

the provisions of the Civil Code on donations in general.

- may or may not revoked by the donor

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.

GR: Any donation, direct or indirect, between spouses during marriage is void.

(Also applies to persons living together as husband and wife without a

valid marriage)

XPN: Moderate gifts which the spouse may give each other on the occasion of

family rejoicing.

Example:
 Maria and Juan were married. They have a common child in the

person of Ben who have no compulsory heir. Juan make a donation to

Ben of a parcel of land located in Bauan. Juan then died. Few years

thereafter, Ben died. Hence, the donation is void, being an indirect

donation. Considering that Ben has no compulsory heir, therefore Maria,

the presumptive heir, will inherit the parcel of land which Juan donated

in favor of Ben.

The last sentence of Art. 87 also prohibits persons living together as

husband and wife without a valid marriage from making donations. And in order

for a donation to be valid, it must be shown that the same was given when they

were not still living as husband and wife without the benefit of the marriage.