PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE Art.

74 Property Relations between husband and wife shall be governed by the ff: 1. By MS executed before marriage; 2. By the provisions of this Code; and 3. By the local customs

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By marriage settlement is meant the contract entered into 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 marriage. Requisites for MS 1. Must be made before the marriage and even modification must also be made before the wedding except conversion into the complete separation of property regime, which would be allowed provided that there is a judicial approval and no prejudice to creditors. 2. Must not contain provisions contrary to law, good morals, good customs, public order, and public policy, or against the dignity of either spouse. 3. Must generally confine itself only to property relations.

The MS must be registered in the local civil registry where the marriage contract is not recorded as well as in the proper registries of property. Hence, a private instruments will not suffice. The agreement must be in a public document, or the same cannot be registered 3. MS affects 3rd persons. Hence, they should know what property regime governs the property relations of the spouses. IF the MS is not registered, it will not affect prejudice third persons, and the absolute community regime will apply. DOCTRINE OF MUTABILITY when the law of the country is changed, the regime affecting property relations is also changed, except that vested rights should not prejudiced. DOCTRINE OF IMMUTABILITY If there is change in the nationality of the contradicting parties after the marriage, the property relations that should govern them is not changed. Regardless of the change in nationality of one spouse or both, the original regime at the time of marriage shall govern their property relations. Art. 78. No longer applicable (RA 6809) Art. 79. Additional Requirement in MS for civil interdictee: - It is indispensable to the guardian appointed by the court to represent the civil interdictee. If not the guardian does not sign as a party, the MS is void. The article does not include insane persons. Art. 80 Rule on MS with regard to Filipino/American spouses. Provides that Philippine laws shall govern the property relations of the spouses (Filipino spouses or Filipino-alien spouses) wherever they reside or regardless of the place of celebration of their marriage or the place where their properties are located Art 80(1): National law will apply Art 80(2):Extrinsic validity of the contract will be governed by the lex situs or the law of the country where the property is situated. Art. 80(3): The lex situs applies in this case In Fil-American marriages: a. If husband is Filipino, Phil. Law will apply b. If wife is Filipino, the natl law of the husband shall apply. Assumption: The husband is the administrator of the property, therefore his national law shall apply to these cases. National theory applies whether: 1. They were married in the Philippines or abroad; 2. They reside in the Philippines or abroad; 3. Their properties are located in the Philippines or abroad Exceptions to the Application of Philippine Laws where there is Conflict of Laws: Philippine laws will not apply in the ff. cases: 1. Where both spouses are aliens. (Natl Law will apply) 2. With respect to the extrinsic validity of contracts over properties located abroad and executed in the country where the property is located. ( The extrinsic validity of the contract will be governed by the lex situs or the law of the country where the property is situated) 3. With respect to the extrinsic validity of contracts over properties located abroad, even if the contract is entered into the Philippines, in cases where the laws of the countries where the properties are located require different formalities for their extrinsic validity. ( The Lex situs applies in these cases.) Art. 81 Voiding MS Everything stipulated in MS shall be void if the marriage does not take place. However if the stipulations that do not depend upon the celebration of the marriage shall be valid. Reason : MS is an accessory contract dependent for its existence on the intended marriage of the parties. If such marriage does not take place, the MS will become void and ineffective, excpt stipulations therein that do not depend upon the celebration of the marriage for their validity.

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Must be in writing in order for the marriage to be binding. It need not be in public instrument even if it involves real properties. The requirement that it be in public instrument recording under Art. 77 is only for the purpose of affecting 3rd persons. If made by minors, their parents must consent by signing also; if by other incompetents; such as those under civil interdiction, the guardian must consent and also sign.

Art. 75 Property Regime that may be agreed upon in MS 1. AC 2. CP of gains 3. CS of property 4. Combination of the above regimes 5. Any other regime; i.e. dowry system. Whatever be the regime agreed upon, it must however, not be contrary to law, morals, good customs, public order, or public policy MS can govern any regime. But once chosen, all properties are included in the regime and the parties cannot exclude specific properties. To eliminate doubt, parties must identify the specific properties in their MS by their titles. AC will apply if: 1. The parties did not enter a MS 2. If the regime agreed upon is void. If some provisions of the MS are void and some are valid, the nullity of the void provisions will not nullify the valid ones, provided the latter can stand by themselves. Art. 76. Modification of MS To be valid, any modification in the MS must be made before the marriage.

The only exception is judicial separation of property during the marriage under Arts. 66 (reconciliation of the spouses), 67 (revival of the former property regime), 128 (abandonment of the spouse), 135 (judicial separation) and 136 (voluntary dissolution of AC/CP) of the Code. Any extra-judicial agreement between the spouses separating their properties is void. Art. 77 FORM of MS 1. Must be in writing (may be private or public instrument); 2. Must be signed by the parties; 3. Must be executed before the marriage; 4. If a party executing the settlement needed parental consent for the marriage, the parent or guardian whose consent to the marriage is needed must be made a party to the agreement; 5. If a party executing the settlement is under civil interdiction or any other disability (like deaf-mute, mutism, prodigality, etc. but not insanity), the guardian appointed by the court must be a party to the MS. In order to affect 3rd persons 1. All the above requirements as between the parties;

Donations propter nuptias are also rendered void if the marriage does not take place.

In case of forclosure of the encumbrance and the property is sold for less than the amount of the obligation secured, the done shall not be liable for the deficiency. If the property is sold for more than the total amount of the obligation, the done shall be entitled to the excess.

Art. 86 Revocation of donation PN DONATIONS BY REASON OF MARRIAGE Art. 82 Requisites of Donations Propter Nuptias: 1. Must be made before the celebration of the marriage; 2. Must be made in consideration of the marriage; 3. Must be made in favor of one or both of the future spouse 4. Observance of formalities required by law. Donation propter nuptias: wedding gifts that are given prior to the celebration of the marriage, but not all wedding gifts are donation propter nuptias, for said wedding gifts may come after the celebration of the marriage. Formalities: - Provisions of NCC Art. 1403 par. 2 Requirement : public doc. Real property : public instrument; Personal property : if more than 5000, must be in writing. Donations PN Ordinary Donations 1. 2. 3. 4. Does not require express acceptance May be made by minors May include future property If present property is donated and property regime is not absolute community, limited to 1/5 Grounds for revocation under Art. 88 Express acceptance necessary Cannot be made by minors is

Cannot include future property No limit to donation of present property provided legitimes are not impaired Grounds for revocation found in law on donations are

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Art. 83 Forms of DN Follows those of ordinary donations, including oral donations, as established in Title III of Book III of the NCC on donations. Forms shall be regulated by the Statute of Frauds. Art. 84 Limitation of Present property 1. Limitation does not apply if the property relations of the future spouses will be governed by the system of absolute community of property, since all the properties of the parties (only with certain exceptions) will become absolute community any way. 2. But if 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: 1. While donations of future property are not allowed in ordinary donations, they are allowed in donations PN. 2. Donations PN 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 revoked after marriage. Art. 85 Donations by reason of marriage of Property subject to encumbrance: Subject to the ff. conditions: