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QUIAO V.

QUIAO
Petitioner: Brigido B. Quiao
Respondents: Rita C. Quiao, Kitchie, Lotis, Petchie

On an MR filed by Rita, the trial court set aside the Court Order
dated Nov. 8, 2006 and reinstated the Court Order dated Aug.
31, 2006.

FACTS:
Rita and Brigido were married on January 6, 1977. The two did
not execute an antenuptial agreement with regard to their
property relations, thus their property relation is the Conjugal
Partnership of Gains pursuant to Art. 119 of the Civil Code.

ISSUES/RULING:
1. WON the Decision dated Oct. 10, 2005 has become final and
executor at the time the Motion for Clarification was filed?

On Oct. 26, 2000, Rita Quiao filed a complaint for legal
separation against Brigido Quiao before the RTC.
In a Decision dated Oct. 10, 2005, the RTC declared the legal
separation of Rita and Brigido. The RTC further ordered them to
divide the remaining properties equally subject to the unpaid
conjugal liabilities of P45,740. However, the RTC ordered that
Brigido’s share was forfeited in favor of the common children.
He was likewise ordered to pay 19,000 as attorney’s fees and
5,000 as litigation expenses.
On Dec. 12, 2005, respondents filed a motion for execution,
which the trial court granted.
On July 6, 2006, the writ was partially executed with the Brigido
paying the amount of 46,870. (conjugal share – 22,870, atty’s
fees – 19,000 and litigation expenses – 5,000).
On July 7, 2006, Brigido filed a motion for clarification asking the
RTC to define the term Net Profits Earned. In an Order dated
August 31, 2006, the RTC defined Net Profits Earned as the
remainder of the properties of the parties after deducting the
separate properties of each of the spouse and the debts.
On Sep. 8, 2006, Brigido filed an MR before the RTC, who
issued another Order dated Nov. 8, 2006 holding that the Court
Order dated Aug. 31, 2006 (definition of net profits earned) is set
aside.

In Neypes v. CA, the Court allowed a fresh period of 15 days
within which to file the notice of appeal in the RTC counted from
the receipt of the order dismissing a motion for new trial or
reconsideration. Failure to avail of the fresh 15-day period
makes the decision or final order final and executor. Thus, at the
time he filed a motion for clarification, the RTC decision has
become final executor.
Petitioner: Such decision is a void judgment, which means no
judgment at all.
Void judgment occurs when the court which rendered it had no
power to grant the relief or jurisdiction of the subject matter or
parties.
RA 8369 grants RTC the original jurisdiction to hear and decide
cases re: marital status and property relations. It also has
jurisdiction over the parties since Rita is found to reside in
Tungao, Butuan City for more than 6 mos and Brigido filed his
Answer to the Complaint.
The Court held that the following matters cannot be disturbed
anymore:
- The finding that the petitioner is the offending spouse
- The grant of legal separation, etc
2. WON Art. 129 of the FC applies to the present case?
Petitioner: Article 102 should govern since it is the only
provisions which mentions net profit earned.

The trial court found out that both spouses did not have separate properties. What is the meaning of the net profits earned by the conjugal partnership for purposes of the forfeiture? The Court referred to Art. 92): a. The difference refers to the net profits. Art. The law does not intend to effect a mixture of debts and properties.” Fair value according to IFRS 13 ..g.In case of legal separation. Civil Code . shirts) c. Process 1. Exclusive and personal property of either spouse (e. “Husband and wife place in a common fund the fruits of their separate property and the income from their work or industry.fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (ie an exit price) Absolute Community of Property All the property of the spouse brings into the marriage and those acquired during the marriage form the common mass of the couple’s properties. 3. then what would be divided is the net profits. 3. the Conjugal Partnership of Gains will govern their property relations. the exclusive properties shall be used to pay the unpaid balance of the absolute community. 3. except the following (Art. Since the FC is already effective at the time of the dissolution of marriage. The debts and obligations of the absolute community shall be paid using the absolute community. . Such amount shall be reduced by the market value of the absolute community properties at the time of marriage. the guilty spouse shall forfeit his/her share of the conjugal partnership of profits. Note that they are solidarily liable.. which “shall be the increase in value between the market value of the community property at the time of the celebration of marriage and the market value at the time of its dissolution. Property acquired by gratuitous title (e. 102(4) for the definition of net profits. 4. if any. Since they are married before the effectivity of the FC and that they did not execute any antenuptial agreement. If the absolute community properties are insufficient. Payment of debts and obligation of the absolute community a. Property acquired before the marriage of a spouse who has legitimate descendant by a former marriage. The remainder constitutes the net assets. The market value of the properties should be ascertained at the time of dissolution. Since nothing will be returned to them and neither has exclusive properties. Applying the foregoing to the instant case for discussion purposes. FC applies in the liquidation of the conjugal partnership. is the net assets. Conjugal Partnership of Gains The spouses place in common fund the fruits of their separate property and income from their work or industry and divide equally upon dissolution. An inventory isting of all community and exclusive properties 2. 2. the following will be the result: 1. plus the fruits and the income of such property. donation or inheritance) b. The remainder. thus the properties mentioned all form part of the absolute community.” b.g.a. 176. which shall be divided between husband and wife (equally unless a different proportion was agreed upon before marriage).

7. Debts and obligations of the conjugal partnership shall be paid using the conjugal properties a. the exclusive properties shall be used to pay the unpaid balance of the absolute community. what remains should be divided equally between the spouses. The conjugal dwelling and lot shall be adjudicated to the spouse with whom the majority of the common children choose to remain. 3. If the CPG are insufficient. which shall be divided (equally unless a different proportion was agreed upon before marriage). the following will result: 1. The trial court found out that both spouses did not have separate properties. Amounts paid by the conjugal property shall be considered as an asset 3. 8. 9. thus the properties mentioned all form part of the conjugal property. Whatever remains from the exclusive properties shall be delivered to the respective spouse. 4.Process 1. . The spouse shall be reimbursed by the conjugal property for the acquisition of property paid using the exclusive funds which has been vested by law in the conjugal partnership. The conjugal partnership shall pay the debts of the conjugal partnership. 5. Applying the foregoing to the case. Since the spouses do not have separate properties. 2. The presumptive legitimes shall be delivered upon partition. An inventory listing of all conjugal and excusive properties 2. 6. The CPG shall pay for the loss/deterioration of the exclusive properties used for the benefit of the family. The net remainder shall be considered as net profits. Note that they are solidarily liable. unless agreed otherwise.