PROPERTY

RELATIONS
I. Absolute Community, and
II. Conjugal Partnership of Gains

Correa, Mica Mae H.

Ignacio, Kathleen Nicole B.
Javier, Francesca Angelica Nicole S.
Ocampo, Lance C.
Pascual, Ardel Hazel V.
Quintal, Ellaine Pearl C.
Raymundo, Kezia Ruth V.
Santos, Nerissa Mae L.
Palad, Nica C.

July 2021
 I. PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE
Art. 74. The property relations between husband and wife shall be governed in the following
order:
(1) By marriage settlements executed before the marriage;
(2) By the provisions of this Code; and
(3) By the local customs. (118)
Theory of the Law on Property Relations of Spouses:
The agreement of the parties embodied in the marriage settlement executed by them
before their marriage prevails over the provisions of the law on the matter of their property
relations during their marriage.
Under Art. 74 of the Family Code and Art.118 of the Civil Code, the law gives the parties
the freedom to determine before the marriage what property regime would govern their
marriage. Only if they do not enter into a marriage settlement would the provisions of the
Family Code on absolute community regime apply between them.
DIFFERENCE BETWEEN ARTICLE 118 OF THE CIVIL CODE AND ART. 74 OF
FAMILY CODE
ARTICLE 118 OF THE CIVIL ARTICLE 74 OF THE FAMILY
CODE CODE
Paragraph 1 “contract executed before the “marriage settlement”
marriage”
Paragraph 3 “by custom” “"by the local custom"
which means the custom of the
specific place where the parties
reside or intend to reside and not
the national custom (which may
be different from the local
custom).

WHAT IS MARRIAGE SETTLEMENT?

Also called as "antenuptial agreement," is meant the contract entered into by a man and
a woman who intend or plan to get married fixing the property regime that will govern their
present and future properties during their marriage.
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 marriage settlements, or when the regime agreed upon is void, the system of
absolute community of property as established in this Code shall govern.
Property Regimes that may be agreed upon in Marriaqe Settlement:
(1) The future spouse may, in their marriage settlement, agree on:
(a) the regime of absolute community; (b) conjugal partnership of gains; (c) complete separation
of property; (d) a combination of the above regimes; (e) any other regime, like the dowry system,
whereby the female before the marriage.
(2) Whatever be the regime agreed upon, it must, however, not be contrary to law, morals, good,
customs, public order, or public policy (Art. 1306, Civil Code).
(3) The marriage settlement can provide in a general way for the regime or combination of
regimes that the parties want, but once a regime is chosen, all properties are governed by that
regime. The parties cannot exclude specific properties from the regime.
(4) To eliminate doubt, the parties must identify their specific properties in their marriage
settlements by their titles.*
SUPPOSE THE PARTIES IN THEIR MARRIAGE SETTLEMENT EXPRESSLV
REJECT THE ABSOLUTE COMMUNLTV REGIME ESTABLISHED BV THIS CODE
BUT DO NOT AGREE ON ANV SYSTEM TO GOVERN THEIR PROPERTV
RELATIONS DURING THEIR MARRIAGE, WHAT SYSTEM WILL APPLY?
1. Determine the intention of parties as to what system they really want and for this purpose,
their contemporaneous and subsequent acts shall be considered (Art 1371, Civil Code)
2. If the intention cannot be ascertained, then apply the local custom in accordance with par. (3)
of Article 74 of this Code.
3. If there is no local custom, apply the rules on co-ownership.*
WHAT IF THE MARRIAGE SETTLEMENT IS COMPLETELY VOID?
Apply the system of absolute community
SUPPOSE THE PARTIES DID NOT ENTER INTO A MARRIAGE SETTLEMENT?
Apply absolute community.
SUPPOSE SOME PROVISIONS OF THE MARRIAGE SETTLEMENT ARE VOID AND
SOME ARE VALID, WHAT IS THE EFFECT?
The nullity of the void provisions will NOT nullify the valid ones, provided the latter can
stand by themselves.
ART. 76 (MODIFICATIONS IN THE MARRIAGE SETTLEMENT)
In order to be valid, any modification must be made before the marriage.
Property Regimes that may be agreed upon in Marriaqe Settlement:
(1) The future spouse may, in their marriage settlement, agree on:
(2) The only exception is judicial separation of property during the marriage under Arts. 66, 67,
128, 135 and 136 of this Code.
(3) Any extrajudicial agreement between the spouses separating their properties is void
ART. 77 (FORMS OF MARRIAGE SETTLEMENT)
The marriage settlement and any modification thereof shall be in writing, signed by the
parties and executed before the celebration of the 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 property.
FORMS OF MARRIAGE SETTLEMENT
A. As between the parties
 Must be in writing (may be private or public instrument)
 Must be signed by the parties
 Must be executed before the marriage;
 If a party executing the settlement needs parental consent for the marriage, the parent or
guardian whose consent to the marriage is needed must be made a party to the
agreement (Art. 78);
 If a party executing the settlement is under civil interdiction or any other disability (like
deaf-mutism, prodigality, etc. but not insanity), the guardian appointed by the court
must be made party to the marriage settlement.
B. In order to affect third persons:
 All the above requirements as between the parties;
 The marriage settlements must be registered in the local civil registry where the
marriage contract is recorded as well as in the proper registries of property. Hence, a
private instrument will not suffice. The agreement must be in a public document or
the same cannot be registered.
Reason for registration in order to Affect Third Persons:
The marriage settlement does not only affect the parties but also affects third persons
who may enter into contracts with the spouses or either of them.
Form under civil code:
Art. 122 of the Civil Code marriage settlements shall be governed by the Statue of Frauds
(ART. 122 OF CC). This means that as between the parties, even an oral marriage settlement is
still valid if they do not object to oral evidence thereof or have accepted benefits under the
contract (Art. 1405, Civil Code) contrary to the Family Code that requires that the marriage
settlement to be in writing and signed by the parties, which rules out an oral marriage
settlement.
Art. 78. A minor who according to law may contract marriage may also enter into marriage
settlements, but they shall be valid only if the persons designated in Article 14 to give consent to
the marriage are made parties to the agreement, subject to the provisions of Title IX of this Code
(120a)
Art. 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 guardian appointed by a competent court to be made a party
thereto. (123a)
(1) If the judicial guardian of the person under disability or under civil interdiction does not sign
the marriage settlement as a party thereto, the marriage settlement is void,
(2) By the phrase "other disability" means other persons who may enter into a marriage even
under some disability, like deaf-mutes, spendthrifts, or insolvents, but not insanes since they
cannot contract marriage even with the consent of their parents or guardians. *
Art. 80. In the absence of a contrary stipulation in the marriage settlements, 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.
Philippine Law Applies to Property Relations of Filipino Spouses. Irrespective of the
Place of the Celebration of their Marriage, their Residence, and the Location of their Properties:
EXCEPTIONS UNDER ART. 80
 Where both spouses are aliens; (In this case, their national law will apply)
 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; (In this case, the
extrinsic validity of the contract will be governed by the lex situs or the law of the |
country where the property is situated)
 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 their extrinsic validity. (124a) Again, the /ex situs applies in these cases.)*
Art. 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 marriage shall be valid. (125a)
GEN. RULE:
MARRIAGE SETTLEMENT SHALL BE VOID IF MARRIAGE DOES NOT TAKE
PLACE.
WHY?? Since the marriage settlement is only an accessory contract dependent for its
existence on the intended marriage of the parties, if such marriage does not take place, the
marriage settlement will become void and ineffective.
EXCEPTIONS:
 Stipulations that do not depend upon the celebration of the marriage shall be valid
Example: Recognition of an illegitimate child in the marriage settlement.
 Donations propter nuptias are also rendered void under the above provision if the
marriage does not take place. Under the Civil Code, such donations are not automatically
revoked by the non- celebration of the marriage, but still need to be revoked by the donor
under Art. 132, par. (2)
Donations propter nuptias- a gift on account of marriage”. It is a gift from a husband to his
wife equivalent to her dowry and subject to similar conditions. ? It was formerly called donatio
ante nuptias (“gift before marriage”) because it was not allowed after the marriage celebration.  (
Art. 82)
Donations Propter Nuptias Distinguished from Ordinary Donations: Donations
Propter nuptias

Does not require express acceptance Express acceptance is necessary

May be made by minors (see Art. 78) Cannot be made by minors
May include future property (same rule as Cannot include future property
wills)
 If present property is donated and property
regime is not absolute community, limited to
1/5.
Grounds for revocation are found In Art. 86.
No limit to donation of present property
provided legitimes are not impaired.
Grounds for revocation are found in law on
donations.

(ART. 83) Form of Donations Propter Nuptias:

 Under the above Article, the form of donations propter nuptias follows those of ordinary
donations. Including oral donations, as established In Title III of Book III of the Civil
Code on donations.
 The above Article amends Art. 127 of the Civil Code, which provides that the form of
donations propter nuptias shall be regulated by the Statute of Frauds
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)
Limitation to Donation of Present Property:
 Limitation does not apply if the property relations of the future spouses will be governed
by the system of absolute community of property, since ail the properties of the parties
(only with certain exceptions) will become absolute community any way.
 But if the future spouses agree on a regime other than the absolute community of
property, they cannot donate to each other in their marriage settlement more than 1/5 of
their present property. Any excess shall be considered VOID.
Donations of Future Property Allowed:
 While donations of future property are not allowed in ordinary donations, they are
allowed in donations propter nuptias.
 Donations propter nuptias of future property shall, however, be governed by the
provisions on testamentary succession and the formalities of wills. Hence, they are
revocable, unlike donations of present properties in the marriage settlement which
cannot be revoked except if the marriage does not take place, since marriage settlements
cannot be modified much less revoked after the marriage (1 Tolentino, id., p. 367
ARTICLE 85:
Art. 131 of the Civil Code requires the donor in a donation propter nuptias to release the
property donated from mortgages and other encumbrances with the exception of
easements, unless the contrary is stipulated. The above Article changes the rule in Art. 131 of the
Civil Code by providing that even property subject to encumbrances may be the subject of a
donation by reason of marriage, subject to the following conditions:
(a) In case of foreclosure of the encumbrance and the property is sold for less than the amount
of the obligation secured, the donee shall not be liable for the deficiency.
(b) If the property is sold for more than the total amount of the obligation, the donee shall be
entitled to the excess.
Grounds for Revocation of Donations Propter Nuptias: (ARTICLE 86)
 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;
 When the marriage takes place without the consent of the parents or guardians as
required by law;
 When the marriage is annulled, and the donee acted in bad faith;
 Upon legal separation, the donee being the guilty spouse;
 If it is with a resolutory condition and the condition is complied with;
 When the donee has committed an act of ingratitude as specified by the provisions of the
Civil Code on donations in general. (132a)
Prescriptive Periods for Filing Action for Revocation of Donations
There is no other provision in the Family Code on the period of prescription of the action to
revoke a donation propter nuptias. Hence, prescriptive periods in other provisions of the Civil
Code should apply, depending on the ground for the revocation. Thus:
1. If the marriage is not celebrated (except donations in the marriage settlement
which are automatically rendered void if the marriage does not take place under
Art. 81):
(1) Written donation - 10 years
(2) Oral donation - 6 years
2. If the marriage is declared void ab initio: Same as in par. (1) hereof;
3. When marriage takes place without the required parental consent - 4 years,
being an injury not founded upon contract
4. If the resolutory condition is complied with - Same as par. (1) hereof.
5. When marriage is annulled - Same as par. (3) hereof;
6. If donee committed an act of ingratitude - 1 year from the donor's knowledge of
the fact
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.
Donations Void under this Article:
 Donations between the spouses during the marriage;
 Any grant of gratuitous advantage between the spouses during the marriage, direct or
indirect, like:
(a) Donation to a step-child or a child of the other spouse by another marriage, since if the
child dies, the other spouse inherits the property donated;
(b) Donation to a person of whom the other spouse is a presumptive heir at the time of the
donation, as a donation to a brother of the other spouse. (Under Art. 134 of the Civil Code,
these donations are only voidable at the instance of the donor's heirs within five years from
his death [Art, 1149, Civil Code].
Reasons for Prohibition of Donations between Spouses during the Marriaqe:
 1. To prevent the weaker spouse from being influenced by the stronger spouse, whether
by abuse of affection or by threats or violence;
2. To protect creditors
3. To prevent an indirect modification of the marriage settlement during the marriage,
which is not allowed {Art. 76)
Who may question validitv of donation:
Only any person prejudiced thereby
Prohibition Applies to Parties Living Together without Wedlock:
1. In common law marriages;
2. Parties living in a state of adultery or concubinage.
Reasons for applying prohibition to above relationships without marriage:
1. The possibility of undue influence still exists;
2. If rule were otherwise, those living in guilt would turn out to be in a better position than
those in legal union.
Exceptions to Prohibitions:
1. Moderate gifts which the spouses may give each other on the occasion of any family
rejoicing.
(a) To determine whether a gift is moderate or not, the social position of the family, its
financial condition, its usages and customs, and other circumstances of the parties, should
be considered.
(b) A car may be a moderate gift, depending on the circumstances.
 II. SYSTEM OF ABSOLUTE COMMUNITY

I. GENERAL PROVISIONS
REGIME OF ABSOLUTE COMMUNITY
The husband and the wife are co- owners of all the properties that they bring Into the
marriage and those acquired by each or both of them during the marriage (except for those
expressly excluded by Art. 92 of this Code) which properties, upon the dissolution of the
marriage, the spouses or their heirs will divide equally.
Reason Why the Family Code Adopts the System of Absolute Community
"In consonance with a Filipino custom, which is nearer to the ideal of family unity and is
more in harmony with the traditional oneness of the Filipino family" (Report of the Code
Commission, id,)
When System of Absolute Community between the Spouses Begins
The system of absolute community between the spouses shall commence "at the precise
moment" that the marriage is celebrated, and any stipulation to the contrary, express or implied,
shall be void
Article 89 is clearly a prohibitory provision when it states that “no wavier of rights,
interests, shares and effects of the absolute community of property during the marriage can be
made except in case of judicial separation of property.”
If the waiver takes place without a judicial separation of property decree, such waiver
shall be void because it is contrary to law and public policy
CASES WHERE WAIVER BY ONE SPOUSE IS ALLOWED:
 With the marriage subsisting. In case of a judicial separation of property, which includes
dissolution of the absolute community or conjugal partnership as a result of legal
separation.
 In case the marriage Is dissolved {by death of one of the spouses) or annulled.
IN THE ABOVE CASES WHERE WAIVER IS ALLOWED:
 The waiver must appear In a public instrument (an oral waiver is void)
 The waiver must be recorded in the office of the local civil registrar, where the marriage
contract Is recorded, and in the proper registries of property.
Creditors of the spouse who made the waiver, may, however, petition the court to rescind the
waiver to the extent of the amounts sufficient to cover their credits.
ILLUSTRATION:
Spouses 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.
ART. 90 Rules on co-ownership are suppletory to the provisions of this Chapter on the system
of absolute community of property between the spouses.
II. WHAT CONSTITUTES COMMUNITY PROPERTY (Art. 91)
 All properties belonging to husband and wife before marriage, except those excluded by
Art. 92, are automatically converted into community or common property of the spouses
by the marriage, without need of any judicial act on the part of the owner-spouse
transferring the same to the community. The same is true with properties acquired by
either spouse or in the names of both spouses during the marriage.
 The spouses have no option to exclude specific properties from the community.
Art. 92 (excluded from the community property)
 Property acquired during the marriage by gratuitous title by either spouse, its fruits and
income. unless it is expressly provided by the donor, testator or grantor that they shall
form part of the community property;
The Civil Code includes fruits and income of properties acquired by gratuitous title by either
spouse during the marriage in the community property; only the property itself is excluded. But
the Committee has changed this rule and has decided to exclude even the fruits and income of
properties acquired by gratuitous title from the community property, because the donation
or grant is made to a particular spouse and not to both spouses or in consideration
of their marriage, and also to respect the wishes of the donor or testator, who
could have given the donation to both spouses if he had wanted to.
 Properties for the personal and exclusive use of either spouse, except jewelry
Reason: because they are valuable and expensive and should, therefore, be part of the
community
 Properties acquired before the marriage by either spouse who has legitimate descendants
by a former marriage, und the fruits as well as the income, if any, of such property
The rule is intended merely to prevent the merger of the properties of a spouse acquired
during a former marriage with his or her absolute community in the second marriage if said
spouse has legitimate children or descendants by his or her first marriage.. second fammmmmm
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.
 The presumption applies to all properties acquired during the marriage. Therefore, in
order that the presumption can be invoked, the property must be shown to
have been acquired during the marriage (De Leon v. RFC, 36 SCRA 289).
 The presumption is rebuttable only by strong, clear and convincing evidence (Ahern v.
Julian, 39 Phil. 607)
 III. CONJUGAL PARTNERSHIP OF GAINS

Art. 105. In case the future spouses agree In the marriage settlements that the regime of
conjugal partnership of gains shall govern their property relations during marriage, the
provisions In this Chapter shall be of supplementary application.
WHEN APPLY?
(1) The property relations of conjugal partnership of gains applies only when the future
spouses agree to it in the marriage settlement, if any.
(2) It also applies to conjugal partnerships of gains already established between spouses
before the effectivity of the Family Code, without prejudice to vested rights. This is the
default property relationship under the Civil Code, which was changed to that of absolute
community of property under the Family Code.

Art. 106. Under the regime of conjugal partnership of gains, the husband-and-wife place in a
common fund the I 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 I; obtained by either
or both spouses shall be divided equally between them, unless otherwise agreed in the marriage
settlements.
Concept of Conjugal Partnership of Gains:
(1) Husband and wife place in common fund:
(a) the proceeds, products, fruits and income of their separate properties.
(b) everything acquired by them through their efforts (i.e., their work, labor, or industry,
whether singly or jointly);
and (c) everything acquired by them through chance (like winnings from gambling, hidden
treasure, and those acquired through fishing and hunting).
(3) Upon dissolution of the marriage or of the partnership, the net gains or benefits from the
partnership shall be divided equally between the spouses, unless they have agreed on
another manner of division in their marriage settlement.

Difference of Conjugal Partnership from the System of Absolute Community

CONJUGAL PARTNERSHIP
Each spouse retains or her property before
the marriage, and only the fruits and
income of such properties become part of
the conjugal properties during the marriage
The separate properties of the spouses are
returned upon the dissolution and only the
net profits are equally divided between the
spouses and their heir
The properties or the capital of the spouses
ABSOLUTE COMMUNNITY
All properties owned by the spouses at the
time of marriage become community
property
Net remainder is equally divided between
the spouses or their heirs upon the
dissolution
It was based essentially on mutual trust and
 are separate and distinct from the benefits confidence between the spouses and fosters
acquired by them during marriage oneness and unity between them
The exclusive properties will be identified It is easier to liquidate
and returned.

Difference of Conjugal Partnership from Ordinary Partnership

Conjugal Partnership Ordinary Partnership
No Personality Partnership is a person
Partnership commences a precise moment Begins at any time agreed upon by the
the marriage is celebrated parties
Regulated by Law Regulated by Agreement
Not for Profit For Profit
Divided Equally Divided according to the proportion
Dissolved upon the death The surviving partners may decide to
continue
Liquidation of profits until dissolution There be a division of profits without
dissolution

Note: The spouses are not co-owners of the conjugal properties during the marriage and
cannot alienate the supposed one-half interest of each in said properties. The interest of the
spouses in the conjugal properties is only inchoate or a mere expectancy and does not ripen
into title until it appears after the dissolution and liquidation of the partnership that there
are net assets. If therefore, during the liquidation of the partnership, it appears that there is
no conjugal property to divide 9 between the spouses, there will be no share for either
husband or wife (Nable Jose v. Nable Jose, 41 Phil. 713).
Art. 107. The rules provided In Articles 88 and 89 shall also apply to the conjugal
partnership of gains, (n)
The provision of Art. 88 as to when the absolute community between the spouses begins also
applies to the conjugal partnership of gains, i.e., at the precise moment (not day) the
marriage is celebrated. The rule in Art. 89 as to waiver of rights, interests, share and effects
of the absolute community of property during the marriage by one spouse, is also applicable
to the conjugal partnership of gains.
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.

Exclusive Property of Each Spouse

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;
a. Properties brought into the Marriage.

Under the conjugal partnership regime, all properties like house and lot or car etc.
brought into the marriage by contacting parties belong to each of them exclusively.
 ›The partnership does not produce the merger of the properties of each spouse.

They can exercise all rights of dominion or of ownership over these exclusive properties.
›The said properties cannot be encumbered, alienated nor dispose of by the spouse
without the consent of the owner spouse.

(2) That which each acquires during the marriage by gratuitous title;
a. Property Acquired by Gratuitous Title
Anything received by each spouse from any source by way of an act of liberality of the
giver, such as a donation or a gift, shall belong exclusively to the spouse-recipient and will not
belong to the conjugal property.
(3) That which is acquired by right of redemption, by barter or by exchange with property
belonging to only one of the spouses; and

a. Property Acquired by Right of Redemption, Barter, or Exchange with

Exclusive Property:
(a) Barter: Property inherited by wife from her father was exchanged by her with
another property.
(b) Redemption: The property shall belong to the spouse who has the right to
redeem regardless of whether he or she uses personal funds.
(c) Exchange:  Property acquired by exchange made by one of the spouses using
his or her exclusive property shall remain the separate property of such spouse.
(4) That which is purchased with exclusive money of the wife or of the husband.

a. Property purchase with the exclusive money of either spouse.

›Property purchased using the exclusive money of one spouse shall belong to the spouse.

›However, when property is purchased using the exclusive money of one spouse, but the
title is taken in the spouse’s joint names, the circumstances shall determine whether it shall
result in a gift from the spouse whose money was used to effect the purchase, or a trust in favor
of such spouse.

Art. 110. The spouses retain the ownership, possession, administration, and enjoyment of their
exclusive properties. Either spouse may, during the marriage, transfer thfe 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 where the property is located.

 Administration shall include entering a contract regarding the use of the property.
Engaging in the litigation, and the collection of the fruits, profits arising from the
separate property.

 The owner spouse may during the marriage transfer the administration of his or her
property to other spouse if they will register it to Civil Registry of Properties where the
property is located.

 Owner spouse may transfer the administration with a stranger without the consent of the
other spouse.
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,

(1) The rights to mortgage, encumber, alienate or otherwise dispose of his or her property
belong to the owner-spouse and are consequences of his or her right of ownership. Hence, the
owner-spouse can exercise these rights without the consent of the other.

(2) The owner-spouse can also appear alone in court to litigate with respect to his or her
exclusive property.

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.

Example:

“X” and “Z” are husband and wife. “X” owned a condo unit in Makati which is under the
administration of “Z” and once the property was sold the administration of “Z” over the property
shall be automatically terminated and the proceeds of the sale shall be turned over to “X” who is
the owner-spouse of the property.

Art. 113. Property donated or left by wil! to the spouses, jointly and with designation of
determinate shares, shall pertain to the doneespouse 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.

Example:

The wife refuses to accept her share in the donation of a piece of land made to her and
her husband. The latter would then get the wife's share by accretion unless the donor has
provided otherwise in the deed of donation.

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.

Although the conjugal partnership paid for the amount of charges imposed by the donor
on the husband or wife in an onerous donation to either, the property donated is still the
exclusive property of the donee-spouse, but he or she has an obligation to reimburse the amount
advanced by the conjugal partnership for the charges on the property at the time of liquidation
of the partnership

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.

(1) Retirement benefits, pensions, annuities, gratuities, usufructs, and similar benefits may be
gratuitous or onerous. If they are gratuitous, they are the exclusive property of the spouse to
whom they are given. If they are onerous (as when the spouse who receives the same contributes
to a pension fund or pays for the benefit out of his salary every month), then such benefits are
conjugal.
 (2) Annuity: The husband bought a life annuity for PI 00,000 before he got married, with the
agreement that the insurance company would give him a monthly pension of P500 as long as he
lives. The pensions received by the husband during the marriage are conjugal, but his right to
the annuity itself is his exclusive property. Hence, if his wife dies, the pensions he will receive
thereafter will again be his exclusive property.

(3) Usufruct: A man was given by a friend the usufruct over a coconut plantation for 10 years.
One year after the usufruct was given to him, he got married. The harvests of the plantation
during the marriage are conjugal, but after his wife dies, pJ; all the harvests will again become
the husband's ^ exclusive property.

(4) Pension: The pension of a government employee that he receives from GSIS upon his
compulsory retirement is conjugal because he pays for that pension monthly from his salary.

(5) Gratuity: A gratuity that is given by an employer to his employee out of liberality for the
latter's long, faithful, and loyal service to the former Is exclusive property of the employee, the
same being gratuitous

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.

Although the husband left his wife and children and cohabited w ith his mistress, land
acquired by the spouses during their cohabitation is presumed conjugal. (Villanueva V. C.A., GR
143286, April 14, 2004)

CONJUGAL PARTNERSHIP PROPERTIES

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. (153a, 154, 155, 159)

Properties Acquired bv Onerous Title during the Marriaqe at Expense of Common

Fund
Example: (1) Car bought by the husband for the family with conjugal funds is conjugal.

(2) Car bought by the husband for the use of the wife with conjugal funds, placing the car
in her name, is still conjugal.

PROPERTY ACQUIRED THROUGH INDUSTRY, LABOR AND PROFESSIONAL

AND THROUGH OCCUPATION.

The law provides that anything obtained from the labor, industry, work and profession of
either or both of the spouses is conjugal. It likewise provides that those acquired through
occupation such as fishing or hunting are conjugal.

FRUITS AND EARNINGS FROM PROPERTIES.

Fruits of the common property and net fruits of the exclusive property belong to the co

HIDDEN TREASURE

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 is conjugal partnership property.

LIVESTOCK

Livestock existing upon the dissolution of the partnership in excess of the number of
each kind brought to the marriage by either spouse shall be conjugal.

CHANCE

Those obtained through the chance are considered conjugal. Losses from gambling or
betting shall be borne exclusively by the loser-spouse.

Art. 118. Property bought on instalments 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.

If the property was bought on installment by a spouse before the marriage and the
contract of sale is such that ownership was already vested on the buyer-spouse at the time of the
execution of the contract, the property is exclusive property of said buyer-spouse, even if
installments on the price up to full payment came from the conjugal funds. The amounts paid by
the conjugal partnership shall, however, be reimbursed to it by the owner-spouse at the time of
the liquidation of the partnership. If, however, the contract of sale on installment is such that
ownership did not vest on the buyer at the time of the execution of the sale and ownership
vested only after the whole price was paid during the marriage and out of conjugal funds, the
property is conjugal but the partnership shall reimburse the buyer-spouse the installments paid
by him or her before the marriage.

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 tho conjugal partnership.
 When one of the spouses has a credit or amount payable to his or her favour, the partial
or whole payment of the capital amount is an exclusive property of the spouse. Subsequently all
interest earned by the capital during the marriage shall belong to the conjugal partnership.

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 o w ner-
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. (158a)

For example, the land belonging to the wife has a value of P 100,000, and the conjugal
partnership constructed a building thereon at a cost of P50,000, so that the entire property
(both land and building} is now worth PI 50,000. But because of the construction by the
spouses of a building on the land, the value of the whole property went up to P180,000,
resulting in an: increase in value or "plus value" of P30,000. But since the cost of the building
(50,000) and the "plus value" total only P80,000 or less than the value of the land of P 100,000,
then both land and building would belong to the wife, with an obligation on her part to
reimburse the conjugal partnership the value of the building at the time it was constructed, the
reimbursement to be made at the time of the liquidation of the conjugal partnership.

CHARGES UPON AND OBLIGATIONS OF THE CONJUGAL PARTNERSHIP

Art. 121. The conjugal partnership be liable for:
(1) The support of the spouses, 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 been 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) Antenuptial debts of either spouse insofar as they have redounded to the benefit o f the
family;
(8) The value of which 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 if found to be groundless. If the
conjugal partnership is insufficient to cover the foregoing-llabilities, the spouses shall be
solidarify liable for the unpaid balance with their separate properties
 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.

IMPORTANCE OF CONJUGAL PARTNERSHIPS IN TERMS OF DEBTS AND

OBLIGATION

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.
The liabilities shall be chargeable to the conjugal partnership if it benefits the same. If there is a
debt by the husband and wife the conjugal partnership property should not go against as
payment for the debt because it is prohibited by the law.

ADMINISTRATION OF THE CONJUGAL PARTNERSHIP PROPERTY

Article 124. The administration and enjoyment of the conjugal partnership 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 a 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 the powers of disposition or encumbrance which
must have the 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.

Article 125. Neither spouse may donate any conjugal partnership 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

DISSOLUTION OF CONJUGAL PROPERTY REGIME

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 and
138.
Termination of the Conjugal Partnership
 Article 126 is exactly the same as Article 99 and so the explanations under the latter
article are likewise applicable to this article.
 When for any cause, the conjugal partnership establishes upon the basis of community
property is dissolved, all the provisions based upon the existence of that partnership
ceases to apply.
 Whatever is acquired by the surviving spouse on the dissolution of the partnership by
death or by presumption of death, or by either of the spouse on termination of the
 partnership of other reasons and when this latter no longer exists, whether the
acquisition be made by his or her labor, or industry, or whether by onerous or lucrative
title, it forms part of his or her own capital, in which the other consort, or his or her heirs
can claim no share. (Nable Jose v. Nable Jose, 41 Phil. 713)
NABLE JOSE VS NABLE JOSE, 41 PHIL 713
FACTS: In the year 1880, Mariano Nable Jose was married in first wedlockto Doña Paz
Borja and had by her the following children: Remedios,Feliciano, Rocio and Mariano, the first
three of whom are now of age,Remedios is married to Fernando Arce, but the last child,
Mariano, is still aminor and is represented in this suit by the said Fernando Arce as curatorad
litem. Paz Borja died intestate in the year 1898, and left no heirs thanthe said four children and
her surviving husband, Mariano Nable Jose. Thecommunity partnership between Mariano
Nable Jose and his Paz Borja hasnot been liquidated since its dissolution in the year 1898. No
proceedingswhatever have been had for the judicial administration of the properties ofthis
partnership. Mariano Nable Jose got indebted and mortgaged thecommunity properties to
Amparo Nable Jose de Lichauco and AsuncionNable Jose, niece Carmen Castro, The Standard
Oil Company onSeptember 27, 1909. This property is encumbered by another mortgaged infavor
of Carmen Castro. Paz Borja's heirs had no knowledge mortgagesnor did they give their consent
to them. In order to recover payment andforeclosure of mortgages, Amparo N. Jose de Lichauco
and Asuncion H.Jose, The Standard Oil Company of New York; and then Carmen
Castrocommenced actions against Mariano N. Jose y Vinluan.
ISSUE: Whether or not the surviving husband, after the death of his wifemay sell or
mortgage the community property acquired during coverture.
HELD: The trial court erred in declaring the mortgage invalid in so far as itaffects the
one-half undivided share of said property, which the courterroneously held to be the property of
these heirs. The judgment enteredby the trial judge should be reversed, and that the record
should bereturned to the court below, where a new judgment will be entereddisposing of the
contentions of the various parties to this litigation ashereinbefore indicated, and providing for
the sale of the mortgagedproperty in the form and upon the conditions prescribed by law.
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.
Effect of Separations
 Article 127 is exactly the same as Article 100, hence theexplanations of the latter is also
applicable to this article.
 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. The guilt of the party
 in leaving the house is immaterial. The one who unjustifiably separated from the other
spouse may also avail of this remedy provided by law.
 For item (3) of this article, any debt incurred for the support of the family is a liability of
the conjugal partnership of gains.
Art. 128. If a spouse without just cause abandons the other or fails to comply with his or her
obligations to the family, the aggrieved spouse may petition the court for the receivership, for
judicial separation of property, or for authority to be the sole administrator of he 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 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 to have no intention of returning to the conjugal
dwelling.
Abandonment
 Article 128 is exactly the same as article 101 and so the explanations made in the latter
are applicable to this article.
 Articles 101 and 128 give an aggrieved spouse the right to bring an action to protect his
or her interest and her right thereto even before the liquidation or dissolution of the
conjugal partnership of gains or the absolute community of property. (Enriquez v. Court
of Appeals, 104 SCRA 656)
Enriquez v. Court of Appeals, 104 SCRA 656
FACTS:
Petitioner Sebastian Enriquez got married to Respondent Adalia Enriquez on 1957 and
eventually separated on 1970. Cresencio Enriquez is the son of the spouses Sebastian and Adalia
Enriquez who the title of the question lot named after him. Respondent Adalia Enriquez filed a
petition to be the co owner of the property in question, a lot of 160 square meters with
apartment building located at Makati City. Cresencio Enriquez borrowed money in Philippine
National Bank and GSIS for the construction of the building using the lot as collateral. Adalia
Enriquez claimed that Sebastian Enriquez borrowed from her before the marriage to buy the lot
in question. ESSO Phil. Inc. Lease the said lot, in December 7, 1970 the deed of exchange
executed by Cresencio and ESSO Phil. Inc.
ISSUE: Whether or not adalia may be a co-owner of the property in question.
HELD: Yes, the money to buy the lot is a conjugal partnership of Adalia and Sebastian Enriquez.
The court affirmed that the property in question belongs to the conjugal partnership of Adalia
and Sebastian Enriquez.

LIQUIDATION OF THE CONJUGAL PARTNERSHIP ASSETS AND LIABILITIES

What is Liquidation of Partnership?
  The conjugal partnership may be liquidated by extrajudicial settlement, ordinary action
of partition, or by way of testate or intestate proceedings. (Villocino v. Doyon, 63 SCRA
460)
Upon the dissolution of the conjugal partnership regime, the following procedure
shall apply:
1. Inventory
 All properties or assets at the time of the dissolution, whether belonging to the conjugal
partnership or separate property of the spouses, must be inventoried.
 In the appraisal of properties, it is not the purchase but the market or, in default thereof,
the assessed value at the time of the liquidation that must be taken into account.
 If the proceedings take a long time and the values have suffered some alterations, there
is nothing to prevent a new valuation when the last stage is reached. There is no law or
doctrine that a prior appraisal is conclusive upon the parties and the courts.

2. Credits in favor of Partnership

 Any amount advanced during the marriage by the conjugal partnership in favor of any of
the spouses shall be credited to the conjugal partnership as an asset.
 Advances made by the conjugal partnership of gains in paying the support of the
illegitimate child of either spouse, the personal debts contracted before the marriage
which did not redound to the benefit of the family and the payments of fines and
pecuniary indemnities for which the spouse was made liable and which did not redound
to the benefit of the family, shall be considered as assets.
 In cases of property bought by installments under Article 118 where conjugal funds and
separate funds were used and where the property was owned separately by either
spouses, the amount of conjugal funds used for completing the installment purchase
shall likewise be considered as an asset of the conjugal partnership of gains.

3. Reimbursement in Favor of Spouse

 If separate funds of any of the spouses are used to buy conjugal property, such amount
shall be reimbursed to the spouse.
 In re Padilla:
Facts: A building separately owned by the wife was torn down to make way for the
construction of new buildings owned by the conjugal partnership property.
Issue: WON the value of the torn building should be paid by the conjugal partnership to the
wife at the time of liquidation considering that the tearing down of the building benefited the
partnership.
Held: The value of the old building at the time it was torn down should be paid to the wife. It is
certain that the old buildings had some value, though small. It is the duty of the commissioners
mentioned in the judgment appealed from to assess that value.
4. Payment of Debts and Obligations of Partnership
 The reimbursement of the spouses for advances they made in favor of the conjugal
partnership or for the value of their separate property which, by law, was vested to the
partnership, has to be paid first before paying other debts and obligations of the conjugal
partnership.
 Construction of tombstones or mausoleums shall be part of funeral expenses and shall be
chargeable to the conjugal partnership property if the deceased is one of the spouses.
  In case of insufficiency of said assets, the spouses shall be solidarily liable for the unpaid
balance with their separate properties.

5. Delivery of Separate Properties

 The exclusive properties are owned by either spouses and should be delivered to them so
they can immediately use what they respectively own.

6. Division of Net Remainder

 The net remainder constitutes the profits of the conjugal partnership property.
 The sharing will be equal unless there is a different proportionor division agreed upon in
the marriage settlement or if there is a valid voluntary waver of such share. A valid
waiver can only occur upon a judicial separation of property or after the marriage has
been dissolved or annulled and must be contained in a public instrument.
 In case of annulment of marriage, if either spouse is in bad faith in contracting the
marriage, his/her share of the net profits ofthe conjugal partnership property shall be
forfeited in favor of the common children, or if there are none, the children of the guilty
spouse by a previous marriage, or in default of children, the innocent spouse.
 In cases of legal separation and annulment, the party in bad faith shall forfeit his share in
the net profits.
 In case the marriage is judicially nullified and when only one of the parties is in good
faith, the share of the party in bad faith in the co‐ownership shall be forfeited in favor of
their common children. In the absence of descendants, such share shall belong to the
innocent party.

7. Unless the owner had been indemnified from whatever source, the loss or
deterioration of movables used for the benefit of the family, belonging to
either spouse, even due to fortuitous event, shall be paid to said spouse
from the conjugal funds, if any

8. Delivery of the Presumptive Legitime

 The presumptive legitime is delivered only after the finality of a judicial decree of
annulment on grounds provided in Artilce 45 or nullity of a subsequent void marriage
under article 40.
 Delivery of the presumptive legitime need not be made in cases of legal separation or in
case of a void marriage not as a result of the non‐observance of Article 40 in relation to
Articles 52 and 53.

9. Conjugal Dwelling
 The conjugal dwelling and the lot on which it is situated shall be adjudicated to the
spouse with whom the majority of the common children choose to remain, unless
otherwise agreed upon by the parties.
 Children below 7 years of age are deemed to have chose the mother, unless the court has
decided otherwise.
 In case there is no majority, the court shall decide, taking into consideration the best
interests of the children.
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 one year from the death
of the deceased spouse if upon the lapse of the one‐year 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.
Identity of Provisions
 Article 130 relative to the conjugal partnership of gains and Article 103 in connection
with the absolute community of property are identical. Explanations under Article 103
are applicable here.
 The statement in a Transfer Certificate of Title describing the owner as married to
somebody does not by itself give rise to the presumption of conjugality. The absence of
proof that the property was acquired during the marriage deems the said property to be
considered as owned by the person stated in the certificate. It shall not be considered
conjugal. Accordingly, in case of death of the owner, this exclusive property shall be co‐
owned by the surviving spouse and his/her heirs. (Estonia v. Court of Appeals, 266 SCRA
627)
Simultaneous Liquidation of Conjugal Partnership Constituted Prior to Family
Code
 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 to the rules of evidence.
 In case of doubt as to which partnership the existing properties belong, the same shall
be divided between the different partnerships in proportion to the capital and duration
of each.
 If there are two or more conjugal partnership properties of two marriages which have not
yet been liquidated, the subsequent partnership cannot be liquidated without the
liquidation of the prior one.
Advancement
 When a spouse dies, the surviving spouse and the children become co‐heirs of the estate
left by the deceased. The amount for support which they are allowed to get must at least
be equivalent to the fruits or rents arising from the share which they will eventually
obtain after liquidation. If what they go exceeded the fruits of their share, the excess shall
be taken from the part of property which has been given to them as their separate
property after liquidation.
 If the fruits are insufficient because their advances exceeded the amount of the fruits,
then the excess shall be taken from the particular share delivered to them after
liquidation.
 Only the surviving spouse and the children are entitled to get allowance for support.
Other heirs are not included.
 Only the surviving spouse and the children are entitled to get the allowances for support
 Allowances for support to the children and the spouse of the deceased pending
liquidation of the estate are subject to collation and deductible from their share of the
inheritance insofar as they exceed what they are entitled to as fruits or income.
SEPARATION OF PROPERTY OF THE SPOUSES AND ADMINISTRATION OF
COMMON PROPERTY BY ONE SPOUSE DURING THE MARRIAGE
Judicial Separation of Property
 Absent any WRITTEN marital agreement stipulating that separation of property (SP)
regime will govern, alterations to property relations after marriage to a SP regime
can only be made with MANDATORY judicial approval.
 Applies to separation by agreement under Art. 136 and by sufficient cause under
Art. 135
 According to SC in Garcia v. Manzano on SP regime under the Civil Code, the
requirements under this provision is consistent with the “policy of discouraging a
regime of separation as it is not in harmony with the unity of the family and the
mutual help and protection expected of the spouses.”
• Most cases judicial approval of SP is sought because spouses have already separated.
Art. 135. Any of the following shall be considered sufficient cause for judicial separation of
property:
1.) Civil Interdiction
• Final Decision of the court rendered against erring spouse embodying the penalty of
civil interdiction is enough for thecourt to approve a judicial separation of property
• Definition: spouse sentenced to a penalty attached with an ACCESSORY PENALTY of
civil interdiction.
• Effects: deprives offender during his sentence of the rights of [1]Parental authority, [2]
Guardianship (either as to persons or property), [3] Marital authority, [4] Manage his
property or dispose of property by any act or any conveyance inter vivos.
2.) Declaration of Absence
• FINAL DECISION of the court declaring the spouse absent is for the court to approve a
judicial separation of property in this case.
• Grounds: Absence may be declared by EITHER: [1] 2 years lapsed without news about
absentee or since the receipt of last news, or [2] 5 years in case absentee left a person in
charge of the administration of property. (Art. 384 of the Civil Code)
• Who may file: [1] spouse present, [2] heirs instituted in a willwho may present an authentic
copy of the same, [3] relatives who may succeed by the law of intestacy, [4] those who have
some right over absentee’s property subordinated to the condition of absentee’s death. (Art.
385 of the Civil Code)
• Effectivity: Declaration of absence shall not take effect until 6 months after its publication
in a newspaper of general circulation (Art. 386 of the Civil Code).
3.) Loss of Parental Authority
• Requirements: To avail of the separation of property, petitioning spouse must show prior
judicial declaration of loss of parental authority of the other spouse.
• FINAL DECISION of the court terminating parental authority is enough for the court to
approve a judicial separation of property in this case.
• Grounds: Enumerated in Art. 229, par. 3 of Art. 231, and Art. 232 of the Family Code.
o Generally: it should indicate malice abuse, bad faith or culpable negligence on the part
of the guilty spouse.
o Example: sexually abusing a common child.
• Application: Loss of parental authority over [1] legitimate or illegitimate common child of
spouses, or [2] legitimate or illegitimate child of the guilty spouse with another person. Law
does not distinguish
• Reason: Under Arts. 94(1) and 121(1), the ACP or CPG is charged for the support of
common children and legitimate children of either spouse. And under Arts. 94(9) and 122,
both may be used to support even illegitimate children subject to reimbursement. Hence,
apparent that support extended by either regime may apply to children not even related to
one of the spouses.
• In the event of judicial decree of loss of parental authority against a spouse, other spouse
can seek for SP so that his interest in the community property or partnership may be
allocated to him.
o Purpose over case [1]: since spouses’ relationship is already damaged, there’s a need to
PROTECT the other spouse’s interest in the assets lest the guilty spouse undertakes an act
very prejudicial to the innocent spouse’s property rights.
o Purpose over case [2]: Interest is removed from being further exposed to liability in
favor of children not even related to the other spouse.
4.) Abandonment and Failure to Comply with Obligations to the Family
• Concept here is the same as those under Art. 101
• Abandonment: left the conjugal dwelling without intention of returning and with intent to
absolutely forego his or her family duties. Leaving for a period of 3 months or failure within
the same to provide any information to his or her whereabouts is prima facie presumed to
have no intention of returning.
• Obligations to the Family: martial, parental or property relations.
5.) Abuse of Administration
• Administration over property regime may be granted in favor of either spouse in the
marriage settlement.
• Purpose: in cases of abuse, judicial SP may be availed of by aggrieved spouse in order to
avoid further depletion of his or her interest in the properties.
• Grounds for Abuse: willful and utter disregard of the interests of the partnership,
evidenced by repetition of deliberate acts and/or omissions prejudicial to the latter.
• Must be enough to constitute “ABUSE”
o Not Clear Abuse: [1] administrator‐spouse performs acts prejudicial to other spouse,
[2] commits acts injurious to the community of property or conjugal partnership, [3]
administrator‐spouse refuses to inform the other of the progress of the family business
o Basis of [1] and [2] is that it may be the result of mere inefficient or negligent
administration
 6.) Separation in Fact
• Grounds: Time of PETITION, spouses must have been separated in fact for at least
ONE YEAR and reconciliation is highly improbable.
Voluntary Separation
• Must have COURT APPROVAL to effect separation of either ACP of CPG, absent such,
an agreement to separate shall be void.
• NEED NOT STATE ANY REASONS to separate such regimes. Agreement by the parties
is enough.
o If a reason is stated and is against public policy, the Court must reject such
agreement.
• Petition for approval to separate may contain the plan or scheme as to how the
properties are to be separated, and if not contrary to law or public policy, shall be granted by the
court.
• Division must be equal unless there is a different agreement in the marriage settlement
or there is a valid waiver of such share as provided in Arts. 102 (4) and 129(7) in the Family
Code.
• Agreement for voluntary separation takes effect from the time of the judicial order
decreeing the separation of the properties and NOT from the signing of the agreement.
• Toda Jr. v. Court of Appeals,
o Issue: When is the conjugal partnership of Benigno andRose Marie considered
dissolved?
o Held: Compromise agreement became effective only on June 9, 1981, the date when
it was approved by the trial court. Not June 9, 1981 when it was signed by the parties.
o Ratio: In accordance with the provisions of Art. 190 of the Civil Code (now Art. 134
of the Family Code), the separation of property is not effected by mere execution of the
contract or agreement of the parties, but by the decree of the court approving the same.
It therefore becomes effective only upon judicial approval, without which it is void.
Moreover, under the provisions on CPG, it is provided that the same is dissolved only
upon issuance of a decree of separation of property.
Creditors
• In case of a waiver of one of the spouses, any creditor of the spouse who made such
waiver may petition the court to rescind the waver to the extent of the amount sufficient to
cover the amount of the credit (Art. 89 and 107).
• In the case below, the SC was interpreting the provision on notice to creditors in Art.
191 of the Civil Code which was essentially adopted in par. 2 of Art 136 of the Family Code.
• De Ugalde v. De Yasi,
o Issue: When judgment by way of compromise agreement on dissolving CPG
become final and executory, does the fact that creditors were not notified, invalidate the
judgment?
o Held: No, judgment is upheld
 o Ratio: A judgment upon a compromise agreement has all the force and effect of any
other judgment, and conclusive only upon parties thereto and their privies, and not
binding on third persons who are not parties to it.
Liquidation
• “in conformity of this Code”: processes laid down in Arts. 102 and 129 must be
observed.
o EXCEPT: delivery of presumptive legitimes. It specifically applies only in case a
marriage is annulled under Art. 45 or declared void for non‐observance of Art. 40.
• Division must be equal unless there is a different agreement in the marriage settlement
or there is a valid waiver of such share as provided in Arts. 102 (4) and 129(7) in the Family
Code.
• Maquilan v. Maquilan, SC ruled that a PARTIAL VOLUNTARY SEPARATION OF
PROPERTY agreed upon by the parties via a compromise agreement duly approved by the
court prior to the judicial declaration of nullity of marriage is valid. Mere filing of petition to
initiate the proceeding for judicial separation of property does not automatically result in the
dissolution of the property regime. Only the FINALITY of the decision decreeing the same,
shall dissolve it; and consequently it is at that time when complete separation of property
applies.
• Properties acquired or expenses incurred by either spouse after the finality of the
decree shall belong exclusively to either of them independently of the community properties or
the conjugal partnership properties.
Rights of Creditors
• Purpose of the provision: Recording of petition and final judgment is to aid present and
future creditors in determining whether an asset of a spouse is conjugal or really separate.
• In case of a waiver of one of the spouses, any creditor of the spouse who made such
waiver may petition the court to rescind the waver to the extent of the amount sufficient to cover
the amount of the credit (Art. 89 and 107)

Revival of Previous Property Regime

• Termination of the causes under Art. 135 constitutes the grounds to be able to revive
the previous property regime as set out in Arts. 141 (1) to (6).
• Parties can file for another petition for judicial separation of property once there are
grounds again to initiate the same even if the ground invoked were the same ground previously
used.
• In case the previous regime was separated by voluntary agreement, the parties can
revive the same upon petition in Court (Art. 142 (7)) . Afterwards, no more voluntary separation
may be granted but if either spouse gives a cause for involuntary separation under Art. 135,
proper proceedings for judicial separation invoking any of the grounds therein can be initiated
and a proper decree of separation granted.
Judicial Proceeding for Revival
 • Where: Spouses should file a motion in the same court proceeding where separation
was decreed for a decree reviving the property regime.
• Agreement to revive the former property regime shall be executed UNDER OATH and
shall specify: [1] properties to be contributed anew, [2] those to be retained as separate, [3]
names and addresses of all their known creditors, and the amounts owing to each.
• Copies of the agreement of revival and the motion for its approval shall be furnished to
the creditors named therein. After the hearing, court shall, in its order, take measures to protect
the interest of creditors.
• Order shall be recorded in the proper registries of property (Art.67).
Art. 142. The administration of all classes of exclusive property of either spouse may be
transferred by the court to the other spouse:
1.) Guardian
• When a spouse is judicially appointed guardian of his or her spouse, he or she may likewise
be constituted as the administrator of the estate of the other spouse. This is so because the
he or she is already obliged by law to live with and take care of the other spouse.
2 and 3.) Absentee and Civil Interdiction
• Exactly the same as in Art. 135 (1) and (2), same explanations.
4.) Fugitive from Justice
• Definition: “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.”
Separation in Fact
• Recall that under Art. 100 (3) and 127(3), separation in fact shall not affect ACP or CPG
as the case may be except that in the absence of sufficient funds in either regime, the
separate properties of both spouses shall be solidarily liable for the support of the family.
• Spouse present shall, upon petition in a summary proceeding, be given judicial
authority to administer or encumber any specific separate property of the other and use the
fruits and proceeds thereof to satisfy the latter’s share.
REGIME OF SEPARATION OF PROPERTY
Suppletory Character
• To validly be governed by SP regime, it must be stipulated in the marriage settlement.
The marriage settlement shall principally govern the SP regime and the Family Code shall be
suppletory.
Properties Included
• Parties may agree on the extent of their SP regime. May involve present or future
property or both. May be total or partial. If it is partial, the property not agreed upon as
separate shall pertain to the absolute community.
• Not valid to agree in the marriage settlement that they shall be governed by ACP or
CPG up to a certain time and thereafter, the SP regime shall commence and govern marital
property relationship. This is so because such provision is tantamount to dissolving the ACP or
CPG by virtue of a cause or contingency not specifically provided by law, particularly Arts. 99
and 126.