Category Archives: marital property relations

mayor-917147_1920

Property Relations between Husband and Wife

In what order does the property relations between husband and wife governed?

Art. 74. The property relationship 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 custom. (118)

*Local custom may mean any rule of conduct formed by repetition of acts uniformly observed as a social rule, legally binding and obligatory. It must be proved as a fact to be binding.

wedding-829140_1920

What is marriage settlement?        

Marriage settlement is defined as a contract entered into by persons who are about to be married for the purpose of fixing the condition of the conjugal partnership with regard to present and future property.The Marriage Settlement must follow certain conditions such as it must be in writing form, signed by the parties and executed before the celebration of the marriage as required by this provision of the Family Code or EO. 209.

Art. 77. The marriage settlements 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 properties. (122a)

* To be enforceable against third persons it must be registered in the local civil registry where the marriage contract is recorded as well as the registry of properties.

 

What are the systems that the future spouses may agree in the marriage settlement?

  1. The regime of ABSOLUTE COMMUNITY OF PROPERTY
  2. The CONJUGAL PARTNERSHIP OF GAINS
  3. COMPLETE SEPARATION OF PROPERTY

 

Art. 75. The future spouses may, in the marriage settlements, agree upon the regime of absolute community, conjugal partnership of gains, complete separation of property, or any other regime. In the absence of a marriage settlement, or when the regime agreed upon is void, the system of absolute community of property as established in this Code shall govern. (119a)

*The spouses may stipulate or agree on any arrangement so long as it is not contrary to law. Spouses who were married after the effectivity of the Family Code (August 03, 1988) without any pre-nuptial agreement shall be governed by the Absolute Community of Property.

 

References:

Family Code of the Philippines [Executive Order No. 209]

Sta. Maria, M. (2010). Persons and Family Relations Law. Quezon City: Rex Printing Company, Inc.

couple-260899_1280 (1)

Absolute Community Property

What is the System of Absolute Community of Property (ACP)?

In ACP, the spouses are considered co-owners of all property brought into the marriage, as well as those acquired during the marriage, which are not otherwise excluded. The commencement of this regime is laid down in this article:

Art. 88. The absolute community of property between spouses shall commence at the precise moment that the marriage is celebrated. Any stipulation, express or implied, for the commencement of the community regime at any other time shall be void. (145a)

What are included in the ACP?

Community property shall consist of all the property owned by the spouses at the time of the celebration of the marriage or acquired thereafter. The inclusions of ACP is further enumerated and explained in the following articles:

Art. 91. Unless otherwise provided in this Chapter or in the marriage settlements, the community property shall consist of all the property owned by the spouses at the time of the celebration of the marriage or acquired thereafter. (197a)

Art. 92. The following shall be excluded from the community property:

(1) Property acquired during the marriage by gratuitous title by either spouse, and the fruits as well as the income thereof, if any, unless it is expressly provided by the donor, testator or grantor that they shall form part of the community property;

(2) Property for personal and exclusive use of either spouse. However, jewelry shall form part of the community property;

(3) Property acquired before the marriage by either spouse who has legitimate descendants by a former marriage, and the fruits as well as the income, if any, of such property. (201a)

Art. 93. Property acquired during the marriage is presumed to belong to the community, unless it is proved that it is one of those excluded therefrom. (160)

 

What are excluded in the ACP?

  1. Property acquired during the marriage by gratuitous title by either spouse, and the fruits as well as the income thereof, if any, unless it is expressly provided by the donor, testator or grantor that they shall form part of the community property;
  2. Property for personal and exclusive use of either spouse. However, jewelry shall form part of the community property;
  3. Property acquired before the marriage by either spouse who has legitimate descendants by a former marriage, and the fruits as well as the income, if any, of such property.

 

What are the obligations chargeable to the community of property?

  1. Support;
  2. Debts and Obligations (if contracted by both spouses and if redounded to the benefit of the family);
  3. Taxes and Expenses;
  4. Expenses to enable spouse to commence or complete a professional or vocational course, or other activity for self-improvement;
  5. Value of what is donated or promised by both spouses in favor of common legitimate children for the exclusive purpose of commencing or completing a professional or vocational course;
  6. Expenses of litigation between the spouses;
  7. In case only of insufficiency or absence of exclusive property of the debtor-spouse, which shall be considered as advances to be deducted from the share of the debtor-spouse upon liquidation of the community;

The abovementioned enumeration is supported by these provisions:

Art. 94. The absolute community of property shall be liable for:

  • The support of the spouses, their common children, and legitimate children of either spouse; however, the support of illegitimate children shall be governed by the provisions of this Code on Support;
  • All debts and obligations contracted during the marriage by the designated administrator-spouse for the benefit of the community, or by both spouses, or by one spouse with the consent of the other;
  • Debts and obligations contracted by either spouse without the consent of the other to the extent that the family may have been benefited;
  • All taxes, liens, charges and expenses, including major or minor repairs, upon the community property;
  • All taxes and expenses for mere preservation made during marriage upon the separate property of either spouse used by the family;
  • Expenses to enable either spouse to commence or complete a professional or vocational course, or other activity for self-improvement;
  • Ante-nuptial debts of either spouse insofar as they have redounded to the benefit of the family;
  • The value of what is donated or promised by both spouses in favor of their common legitimate children for the exclusive purpose of commencing or completing a professional or vocational course or other activity for self-improvement;
  • Ante-nuptial debts of either spouse other than those falling under paragraph (7) of this Article, the support of illegitimate children of either spouse, and liabilities incurred by either spouse by reason of a crime or a quasi-delict, in case of absence or insufficiency of the exclusive property of the debtor-spouse, the payment of which shall be considered as advances to be deducted from the share of the debtor-spouse upon liquidation of the community; and

(10) Expenses of litigation between the spouses unless the suit is found to be groundless.

If the community property is insufficient to cover the foregoing liabilities, except those falling under paragraph (9), the spouses shall be solidarily liable for the unpaid balance with their separate properties. (161a, 162a, 163a, 202a-205a)

Art. 95. Whatever may be lost during the marriage in any game of chance, betting, sweepstakes, or any other kind of gambling, whether permitted or prohibited by law, shall be borne by the loser and shall not be charged to the community but any winnings therefrom shall form part of the community property. (164a)

 

What is the manner of administration of ACP?

The manner administration is expressly provided in these articles:

Art. 96. The administration and enjoyment of the community property shall belong to both spouses jointly. In case of disagreement, the husband’s decision shall prevail, subject to recourse to the court by the wife for proper remedy, which must be availed of within five years from the date of the contract implementing such decision.

X x x

Art. 97. Either spouse may dispose by will of his or her interest in the community property. (n)

Art. 98. Neither spouse may donate any community property without the consent of the other. However, either spouse may, without the consent of the other, make moderate donations from the community property for charity or on occasions of family rejoicing or family distress. (n)

 

When is sole administration allowed?

The following are the instances when sole administration may be allowed:

  1. One spouse is incapacitated or otherwise unable to participate in the administration of common properties;
  2. A spouse abandons the other (there must a court order);
  3. During the pendency of a legal separation case (there must be a court order);

 

Art. 96. X x x In the event that one spouse is incapacitated or otherwise unable to participate in the administration of the common properties, the other spouse may assume sole powers of administration. These powers do not include disposition or encumbrance without authority of the court or the written consent of the other spouse. In the absence of such authority or consent, the disposition or encumbrance shall be void. However, the transaction shall be construed as a continuing offer on the part of the consenting spouse and the third person, and may be perfected as a binding contract upon the acceptance by the other spouse or authorization by the court before the offer is withdrawn by either or both offerors. (206a)

*The power to administer do not include the powers of disposition or encumbrance which must have the authority of the court or written consent of the spouse. In the absence of such authority/consent, the disposition or encumbrance shall be void. Any transaction entered by the wife without the court or the husband’s authority is unenforceable in accordance with Article 1317(32) of the Civil Code. Being an unenforceable contract, the Contract to Sell is susceptible to ratification. No waiver of rights, interests, shares and effects of the absolute community during the marriage shall be allowed. 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, it is presumed to be conjugal unless the contrary is proved.

 

How is Absolute Community of Property Regime dissolved?

It can be dissolved by the instances laid down in this article:

Art. 99. The absolute community terminates:

(1) Upon the death of either spouse;

(2) When there is a decree of legal separation;

(3) When the marriage is annulled or declared void; or

(4) In case of judicial separation of property during the marriage under Articles 134 to 138. (175a)

References:

Family Code of the Philippines [Executive Order No. 209]

Matthews V. Taylor, GR No. 164584, June 22, 2009

Sta. Maria, M. (2010). Persons and Family Relations Law. Quezon City: Rex Printing Company, Inc.

Conjugal Partnership of Gains

What is the Conjugal Partnership of Gains (CPG)?

The Conjugal Partnership of Gains applies if agreed upon in the marriage settlement. Under this regime, the husband and the wife place in a common fund the proceeds, products, fruits and income from their separate properties and those acquired by either or both spouses through their effort or by chance, and upon dissolution of the marriage or of the partnership, the net gains or benefits obtained by either or both spouses shall be divided equally between them, unless otherwise agreed in the marriage settlements. This regime is thoroughly explained in this article:

Art. 106. Under the regime of conjugal partnership of gains, the husband and wife place in a common fund the proceeds, products, fruits and income from their separate properties and those acquired by either or both spouses through their efforts or by chance, and, upon dissolution of the marriage or of the partnership, the net gains or benefits obtained by either or both spouses shall be divided equally between them, unless otherwise agreed in the marriage settlements. (142a)

 What are included in the Conjugal Partnership of Gains (CPG)?

  1. Properties acquired by onerous title during the marriage at the expense of the common fund.
  2. Properties obtained during the marriage from the labor, industry, work or profession of either or both spouses.
  3. Fruits from conjugal properties and “net fruits” from separate properties
  4. Share in hidden treasures
  5. Acquired thru chance
  6. Livestock

For further elaboration, the following articles of the Family Code explains that:

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. (160a)

Art. 117. The following are conjugal partnership properties:

  • 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;
  • Those obtained from the labor, industry, work or profession of either or both of the spouses;
  • 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;
  • 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;
  • Those acquired through occupation such as fishing o
wedding-1146324_1280

Regime of Separation of Property

What is the Regime of Separation of Property?

The Regime of Separation of Property governs that each spouse shall own, dispose of, possess, administer and enjoy his or her own separate estate, without need of consent of the other. In this regime, each spouse shall belong all earnings from his/her profession, business or industry and all fruits, natural, industrial or civil, due or received during the marriage from his or her separate property.

Art. 143. Should the future spouses agree in the marriage settlements that their property relations during marriage shall be governed by the regime of separation of property, the provisions of this Chapter shall be suppletory. (212a)

What are the obligations chargeable to separate property?

  1. Support of illegitimate children of either spouse;
  2. Liabilities by reason of crime or quasi-delict;
  3. Expenses of litigation if found to be groundless;
  4. Losses in any game of chance;
  5. Debts contracted during the marriage (contracted without the consent of one spouse and which did not benefit the family);
  6. Ante-nuptial debt which did not benefit the family;
  7. Taxes incurred on a separate property which is not used by the family;
  8. Expenses incurred during the marriage on a separate property ifnot for its preservation; and the property is not used by the family.

The following provisions of the Family Code shall also govern the separate properties of each spouse:

Art. 144. Separation of property may refer to present or future property or both. It may be total or partial. In the latter case, the property not agreed upon as separate shall pertain to the absolute community. (213a)

Art. 145. Each spouse shall own, dispose of, possess, administer and enjoy his or her own separate estate, without need of the consent of the other. To each spouse shall belong all earnings from his or her profession, business or industry and all fruits, natural, industrial or civil, due or received during the marriage from his or her separate property. (214a)

Art. 146. Both spouses shall bear the family expenses in proportion to their income, or, in case of insufficiency or default thereof, to the current market value of their separate properties.The liabilities of the spouses to creditors for family expenses shall, however, be solidary. (215a)

References:

Family Code of the Philippines [Executive Order No. 209]

Jurado, D. (1999). Civil Law Reviewer. Quezon City: Rex Printing Company, Inc.

Sta. Maria, M. (2010). Persons and Family Relations Law. Quezon City: Rex Printing Company, Inc.

true-love-993857_1920

Property Regime of Unions without Marriage

What is the property regime of unions without marriage?

The following provisions of the New Civil Code shall apply in these respective cases:

Art. 147. 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. (1395)

*This applies when a man and a woman, suffering no legal impediment to marry each other, so exclusively live together as husband and wife under a void marriage or without the benefit of marriage. Wages and salaries earned by either party during the cohabitation shall be owned by the parties in equal shares and will be divided equally between them. This is true even if only one party earned the wages and the other did not contribute thereto.

Art. 148. The following shall be the exclusive property of each spouse:

(1) That which is brought to the marriage as his or her own;

(2) That which each acquires, during the marriage, by lucrative title;

(3) That which is acquired by right of redemption or by exchange with other property belonging to only one of the spouses;

(4) That which is purchased with exclusive money of the wife or of the husband. (1396)

*This applies in cases where the parties in unions are incapacitated to marry each other. It refers to the property regime of bigamous marriages, adulterous relationships in state of concubinage, relationships where both man and woman are married to other persons. Wages and salaries earned by each party belong to him or her exclusively. Only property acquired by both of the parties thru “actual joint contribution of money, property, or industry “shall belong to the co-ownership, in proportion to their respective contributions.

 

References:

Family Code of the Philippines [Executive Order No. 209]

Jurado, D. (1999). Civil Law Reviewer. Quezon City: Rex Printing Company, Inc.

Sta. Maria, M. (2010). Persons and Family Relations Law. Quezon City: Rex Printing Company, Inc.

 

car-701770_1920

Separation of Property of Spouses during Marriage

How is separation of property of spouses during the marriage effected?

The system of Complete Separation of Property will only govern if there is an express declaration in the marriage settlement. Separation of property may also be ordered by the court upon finality of decree of legal separation, joint petition of the spouses or petition for Judicial Separation due to a sufficient cause. The spouse if prior to marriage did not stipulate in any written marital agreement their property relationship through separation of property, they cannot alter this relationship after the marriage without mandatory judicial approval. The following may be the cause:

Art. 135. Any of the following shall be considered sufficient cause for judicial separation of property:

  • That the spouse of the petitioner has been sentenced to a penalty which carries with it civil interdiction;
  • That the spouse of the petitioner has been judicially declared an absentee;
  • That loss of parental authority of the spouse of petitioner has been decreed by the court;
  • That the spouse of the petitioner has abandoned the latter or failed to comply with his or her obligations to the family as provided for in Article 101;
  • That the spouse granted the power of administration in the marriage settlements has abused that power; and
  • That at the time of the petition, the spouses have been separated in fact for at least one year and reconciliation is highly improbable.

In the cases provided for in Numbers (1), (2) and (3), the presentation of the final judgment against the guilty or absent spouse shall be enough basis for the grant of the decree of judicial separation of property. (191a)

What is separation-in-fact orseparation-de-facto?

Separation in fact is the cessation of the cohabitation or common life of the husband and wife under the same roof but are still providing for their mutual duty of support and their duty to support and maintain the children. The separation-in-fact between husband and wife shall not affect the regime of absolute community or conjugal partnership, if without judicial approval.

References:

Family Code of the Philippines [Executive Order No. 209]

Jurado, D. (1999). Civil Law Reviewer. Quezon City: Rex Printing Company, Inc.

Sta. Maria, M. (2010). Persons and Family Relations Law. Quezon City: Rex Printing Company, Inc.