For Group 2 (CPG) - Emily and Raj were married in March 17, 2005 and they executed a prenuptial

agreement stating that their property relations during the marriage will be governed by Conjugal
Partnership of Gains (CPG) because the family of Raj fear that Emily is just after their money.
Because of her love for Raj, Emily readily signed the prenup.

Prior to the marriage, Raj owned several businesses and his net worth was 100M.

During the marriage, Emily helped in the family business of Raj and she received monthly salary of
Php 200,000. Raj despite being rich never gave Emily money for their day to day expenses so Emily
had to take care of everything. Raj would once in awhile pay for trips and tuition fee of their four
children.

Unknown to Emily, Raj had been maintaining a relationship with another woman for a year
already. When Emily discovered his indiscretion, she was beside herself. Raj did not deny his affair.
Emily had see a shrink to help her deal with the situation. She also discovered that Raj had
borrowed money here and there because of business losses he had suffered. He also showered
his mistress with expensive gifts and a condominium unit worth 20M. Raj was also arrested for
qualified theft along with his mistress who is a bank manager.

Emily could no longer take it so she filed for legal separation. She also learned that her rich aunt
left her entire property to her amounting to 250M.

How would you describe their property relationship of Emily and Raj and what expenses does it
answer for? If the legal separation is granted, how will the CPG be dissolved.

She also discovered that Raj had borrowed money here and there because of business losses he
had suffered
An inventory shall be prepared listing the exclusive properties of each spouse

Exclusive - Original net worth of Emily+ 250M inheritance of Emily from her aunt + Assets of Raj
comprising his net worth of 100M

Salary of Emily + the profits of Raj’s business = Conjugal Partnership

Credited to Conjugal Partnership - He also showered his mistress with expensive gifts and a
condominium unit worth 20M.

Chargeable to the Conjugal Partnership – Obligations due to financial loss of business from since
profits from the business ultimately redounded to the family

After deducting the debts and obligations from total asset of conjugal partnership – We will arrive
at the net profits

Emily’s day-to-day expenditures and Raj’s tuition and other fee expenses should be deducted from
Conjugal Partnership

All profits of the Conjugal Partnership will be forfeited in favor of Emily since Raj was the guilty
spouse.