TITLE IV: PROPERTY RELATIONS BETWEEN

HUSBAND AND WIFE

System of
Absolute
Community
Rosalie Obado Abatayo
Persons and Family Relations

UNIVERSITY OF CEBU SCHOOL OF LAW | PFR

 Overview

General Provisions
What Constitutes Community
Property
Charges upon and
Obligations of the Absolute

Chapter 3 Community
Ownership, administration,
enjoyment and disposition of
the community property
Dissolution of Absolute
Community Regime
Liquidation of the Absolute
Community Assets and
Liabilities
Preliminaries
ARTICLE 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.
 When does absolute
community commence?

ARTICLE 88. The absolute

General community of property
between spouses shall
Provisions 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.
 Waiver System of Absolute
Community as a Special
Co-Ownership
ARTICLE 89. No waiver of rights, shares
and effects of the absolute community of
property during the marriage can be made
except in case of judicial separation of ARTICLE 90. The provisions on
property.
co-ownership shall apply to the
When the waiver takes place upon a absolute community of property
judicial separation of property, or after the between the spouses in all
marriage has been dissolved or annulled, matters not provided for in this
the same shall appear in a public
instrument and shall be recorded as
Chapter.
provided in Article 77. The creditors of the
spouse who made such waiver may
petition the court to rescind the waiver to
the extent of the amount sufficient to
cover the amount of their credits. (146a)
 Article 6 of the Civil Code provides: “Rights
may be waived, unless the waiver is contrary
to law, public policy, morals or good customs

Waiver
or prejudicial to a third person with a right
recognized by law.” Therefore:

A waiver of rights during the marriage is not

valid for being contrary to law and public
policy in the light of the prohibition in Article
89 of The Family Code.

Article 89 (2) tackles the remedy for third

persons (creditors) whose rights may be
prejudiced by the waiver of one spouse to
the rights in the absolute community. For the
benefit of this third person, the Court, upon
petition, may rescind the waiver to the
extent of the amount sufficient to cover the
amount of their credits.
Special There is co-ownership whenever the ownership of an
undivided thing or right belongs to different persons.
(Art. 484, NCC)

Co- Co-ownership is defined as "the right of common

dominion which two or more persons have in a

Ownership spiritual part of a thing, not materially or physically

divided.” (Sanchez v. CA, G.R. No. 152766)
What
Constitutes
the Absolute
Community
Article 94-95
 ARTICLE 91. Unless otherwise provided in this
Chapter or in the marriage settlements, the
community property shall consist of all the
What property owned by the spouses at the time of

constitutes
the celebration of the marriage or acquired
thereafter.

the absolute
community? ARTICLE 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 underlying intent of the absolute
Rationale community of property is to make the husband
and wife one in all aspects. The intent of the
Family Code to foster the essential unity of
husband and wife and to make the family a
unified and strong nuclear unit which is the
foundation of the society overrides all other
consequences arising from property
relations. (Sta. Maria, 2019)
 1. The property stipulated as exclusive in the
marriage settlement (Art. 91)

What is Article 91
1. Property acquired during the marriage by
excluded in gratuitous title by either spouse, and the fruits
as well as the income thereof, if any, unless it is
the absolute expressly provided by the donor, testator or

community? grantor that they shall form part of the

community property;
(From Art. 91-92) 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.
 Requisite it must be a valid gratuitous acquisition.
What is
excluded in
Proviso: unless it is expressly provided by the donor,
testator or grantor that they shall form part of the
community property originally refers to the fruits
the absolute and income from the property acquired via gratuity
but further deliberations of the Civil Code and Family
community? Code Committee resulted in extending this
qualification to the property itself, specifically those
Article 91(1) obtained thru valid gratuitous acquisition
What is The exception of jewelry to the exclusion of
excluded in properties belonging to the absolute community
highlights the fact that the “property for personal

the absolute and exclusive use” referred to must be interpreted in

terms of value.

community? Example: A car that is personally and exclusively used by

either spouse belongs to the absolute community regardless
Article 91(2) of the personal and exclusive use of the property exercised
by the spouse over this property. (Except if this property
has been stipulated as exclusive in the marriage
settlement.)
 Qualify: Property acquired from the previous marriage
What is by a spouse who has LEGITIMATE descendants (not

excluded in
limited to children alone) from that marriage.

the absolute This exclusion is for previous marriages that

were judicially declared null and void or annulled

community?
and previous marriages that were terminated by
death provided that for the latter, the property
regime has been liquidated otherwise, Art. 103
Article 91(3) will apply where the property regime of the
subsequent marriage will be a mandatory
complete separation of property.
 Illustration

What is Previous void marriage was governed by ACP.

excluded in
The ACP was liquidated and distributed. The
share of the spouse from the liquidated ACP of
the previous marriage cannot be brought into the
the absolute ACP of the second marriage but his/her exclusive
property from the first marriage may be brought
community? into the ACP of the second marriage.

Article 91(3) If previous void marriage was governed by CPG

and the CPG was liquidated, the share of the
spouse from the CPG cannot form part of the
ACP of the subsequent marriage but the
properties of the spouse outside of the CPG of
the first marriage can be brought into the ACP of
the second marriage
Status of
properties
Unlike under conjugal partnership regime
acquired using where properties bought using the exclusive

exclusive property is likewise excluded from the regime,

the property bought using an excluded
property of property belongs to the absolute community.

either spouse
Charges upon
and obligations
of the absolute
community
Article 94-95
 Support to spouses, common children, and
legitimate children of either spouse.
Liabilities of the
Absolute SUPPORT IS THE MOST IMPORTANT
OBLIGATION.
Community of
Support compromises everything
Property indispensable for sustenance, dwelling,
clothing, medical attendance, education and
(Art. 94) transportation, in keeping with the financial
capacity of the family. (Article 194).
 Debts and obligations
Liabilities of the Contracted by the administrator spouse for
Absolute the benefit of the ACP;
Contracted by either spouse for the benefit
Community of of the family;
Antenuptial debts of either spouse that
Property redounded to benefit of the family
Contracted by both spouses; and
(Art. 94) Contracted by either spouse with the
consent of the other spouse.
 Taxes, liens , charges and repairs upon the
community property, even without the consent of
the other. (Apply co-ownership)

Liabilities of the Taxes and expenses for the preservation of

exclusive property used by the family.
Absolute Example: Maintenance expense for the house
obtained by gratuitous acquisition, and thus, not
Community of belonging to the community property, but is used

Property by the family.

(Art. 94) Expenses for self improvement of either spouse

and donation promised for self-improvement of
common legitimate child

Litigation expenses
for suit between husband and wife
for suit for the benefit of the family
 When the exclusive property of concerned
Liabilities of the spouse is insufficient to pay for the following:

Absolute Support of illegitimate children;

Community of Antenuptial debts that do not fall under

paragraph 7; and
Property liabilities arising from the civil component
of crimes or quasi-delict;
(Art. 94)
Note: The amount charged to the ACP to pay for the
aforementioned is deemed as advances of the
concerned spouse from his/her share of the ACP
upon liquidation.
 If the assets of the community property are
insufficient to satisfy its liabilities, except for par. 9,
Solidary liability each spouse is solidarily liable.

The balance can be paid out of the separate funds

of the spouses.
 In case of insolvency of a debtor spouse, the ACP
cannot be subject to attachment except insofar as
the debt redounded to the benefit of the family. In
Insolvency of which case, if the husband is the insolvent, the
administration of the community will be transferred
Spouses to the wife or to a third person other than the
assignee in an insolvency proceeding to prevent
the debtor spouse from dissipating the properties
which may be assigned to satisfy his obligations.
Profit/Loss in Profits from gambling belong to the absolute
community;
games of
Losses from gambling shall be charged upon

chance the exclusive property of the loser;

 In case of insolvency of a debtor spouse, the ACP
cannot be subject to attachment except insofar as
the debt redounded to the benefit of the family. In
Insolvency of which case, if the husband is the insolvent, the
administration of the community will be transferred
Spouses to the wife or to a third person other than the
assignee in an insolvency proceeding to prevent
the debtor spouse from dissipating the properties
which may be assigned to satisfy his obligations.
Ownership,
Administration,
Enjoyment, and
Disposition of
the Community
Property
Article 96-98
 ARTICLE 96. The
Joint administration and enjoyment

Administration of the community property

shall belong to both spouses
jointly. In case of
Article 96 (1)
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.
Sole In the event that one spouse is incapacitated
or otherwise unable to participate in the
administration, administration of the common properties, the
right to other spouse may assume sole powers of
administration. These powers do not include
disposition and disposition or encumbrance without
encumbrance authority of the court or the written consent
of the other spouse. In the absence of such
authority or consent, the disposition or
Article 96 (2) 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.
Disposition This is not a contravention of Article 89 which
prohibits waiver of rights in the ACP since the
by will will takes effect only after the death of the
testator spouse.

Article 97. Either A testator can provide that certain properties

spouse may dispose after his or her death will go to whoever he or
she wishes the property will go, provided that
by will of his or her
the grant will not encroach the lawful legitimes
interest in the
of his compulsory heroes.
community
property. (n) Considering the co-ownership nature of the ACP,
the spouse-testator can only dispose of his or
her interest in the community property and not
in a specific property.
Disposition This is not a contravention of Article 89 which
by will prohibits waiver of rights in the ACP since the
will takes effect only after the death of the
testator spouse.

Article 97. Either

A testator can provide that certain properties
spouse may after his or her death will go to whoever he or
dispose by will of she wishes the property will go, provided that
his or her interest in the grant will not encroach the lawful legitimes
the community of his compulsory heroes.
property. (n)
Considering the co-ownership nature of the ACP,
the spouse-testator can only dispose of his or
her interest in the community property and not
in a specific property.
Donation
without
consent Rationale: To protect the share of the
other spouse in the community property
ARTICLE 98. Neither which may be prejudiced by reckless
spouse may donate any
community property
generosity of the other.
without the consent of the
other. However, either
Exceptions: Moderate donations for
spouse may, without the
consent of the other, make charity or occasions of family rejoicing or
moderate donations from distress.
the community property
for charity or on occasions
of family rejoicing or family
distress.
Dissolution
of Absolute
Community
Regime
Article 99-101
When does ARTICLE 99. The absolute community
terminates:
the ACP
terminate? (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 Article
134 to 138.
When does
the ACP (1) DEATH OF EITHER SPOUSE;
terminate?
(2) Granting of decree of legal
Article 99. The absolute separation;
community terminates:
(3) Annulment of marriage
(1) Upon the death of either
spouse;
(4) Declaration of nullity of
(2) When there is a decree of marriage
legal separation;

(3) When the marriage is (5) Judicial separation of property

annulled or declared void; or during the marriage
(4) In case of judicial separation
of property during the marriage
under Article 134 to 138.
 ARTICLE 100. The separation in fact between

Effects of husband and wife shall not affect the regime of

absolute community except that:

separation (1) The spouse who leaves the conjugal home or

in fact refuses to live therein, without just cause, shall

not have the right to be supported;

(2) When the consent of one spouse to any

Article 100 transaction of the other is required by law,
judicial authorization shall be obtained in a
summary proceeding;

(3) In the absence of sufficient community

property, the separate property of both spouses
shall be solidarily liable for the support of the
family. The spouse present shall, upon proper
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. (178a)
 ARTICLE 101. 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 receivership, for judicial
separation of property or for authority to be the sole
Abandonment administrator of the absolute community, 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 her or she has left the conjugal dwelling without
intention of returning. The spouse who has 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
 Petition the court for receivership or be
appointed as sole administrator of the
Remedies for community property Judicial Separation

the of property - Art. 136

Failure to comply with obligations to the
abandoned family under Article 101 may constitute
spouse psychological incapacity, a ground for
declaration of nullity of marriage (Art
36);
Unjustified abandonment for a period of
over 1 year constitutes ground for LEGAL
SEPARATION (Art 55 par. 10).
Liquidation
of the
Absolute
Community
Assets and
Liabilities
Article 102-104
Liquidation
of ACP for NO ACP in void marriages

void EXCEPTION: Marriages voided under

Article 40
marriages Article 147 and 148 of the Family Code
govern the property relations of a void
marriage
Liquidation of
the Absolute
Community

Inventory Payment of Debts Delivery of Partition/forfeiture Delivery of

exclusive properties of shares presumptive
legitimes pursuant
to Article 51
 The properties must be itemized and valued
including those that are exclusive properties.
Inventory The assessed value at the time of the
liquidation must be appreciated, not the
purchase value.

A new valuation may be conducted if the

Art. 102(1) An inventory shall liquidation took long or during the course
be prepared, listing separately thereof, there is a significant change in the
all the properties of the current market value of the property.
absolute community and the
exclusive properties of each
spouse.
Payment of
Debts and Debts and obligations chargeable to the
ACP under Article 94shall be paid from the
Liabilities assets of the ACP.

In case of insufficiency of the ACP to settle

Article 102 (2) The debts the liabilities, the spouses’ exclusive
and obligations of the property will be used to pay the debts.
absolute community shall be
paid out of its assets. In case
In the case of Article 94(9), the liabilities
of insufficiency of said
assets, the spouses shall be that were paid for by the ACP assets shall be
solidarily liable for the deducted from the concerned spouses’
unpaid balance with their share of the ACP net profit.
separate properties in
accordance with the
provisions of the second
paragraph of Article 94.
Delivery of
Exclusive Article 102 (3) Whatever remains of

Properties the exclusive properties of the spouses

shall thereafter be delivered to each of
them.
Partition/Forfeiture
of net shares
Article 102(4). The net remainder of
the properties of the absolute
community shall constitute its net
assets, which shall be divided
equally between husband and wife,
unless a different proportion or
division was agreed upon in the
marriage settlements, or unless
there has been a voluntary waiver of
such share provided in this Code.
For purpose of computing the net
profits subject to forfeiture in
accordance with Articles 43, No. (2)
and 63, No. (2), the said profits shall
be the increase in value between
the market value of the community
property at the time of the
celebration of the marriage and the
market value at the time of its
dissolution.
If the common properties are more than
enough to pay the absolute community
obligations, the remainder shall be
considered as the net assets to be divided
by the spouses.
The net assets shall be divided equally by
the husband and wife, unless a different
proportion or division was agreed upon in
the marriage settlement or when there is a
valid waiver of rights.
Forfeiture of net share to the net profit of
the spouse in bad faith takes effect herein
according to law (Article 43 par. 2 for
nullity cases under Article 40, 42,
annulment cases under Article 45 and Legal
separation pursuant to Article 63 par. 2; and
Article 147 and 148 for other void
marriages)
Delivery of
presumptive
legitimes
Article 102(5). The
presumptive legitimes of
the common children shall
be delivered upon partition,
in accordance with Article
51.
This is only needed for marriages
annulled under Article 45 or
nullified under Article 40.
HOWEVER, the delivery of
presumptive legitime in a judicial
separation of property case
(Noveras v. Noveras, 2014) was
affirmed by the Court
notwithstanding the phrase “in
accordance with Article 51.”
In the case
of alien
spouse An alien married to a filipino
cannot have any interest in the
married to a absolute community or CPG
Filipino consisting of real estate and he
cannot claim refund for the value
of the property.
Liquidation for ACP
terminated by death

ARTICLE 103. Upon the termination of the marriage by death, the community 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
community property either judicially or extrajudicially 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 community 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.
 Follow the same proceeding in Article 102.

Liquidation If the decedent spouse left no will and no debts, and

the heirs are all of age, or the minors are represented

for ACP by their judicial or legal representatives, duly

authorized for the purpose, the parties may, without

terminated securing letters of administration from the Court,

divide the estate among themselves as they see fit by

by death
means if a public instrument in the office of the
register of deeds.

In case of disagreement, they may file an ordinary

action for partition.

Any disposition or encumbrance of any specific

property before the process of liquidation shall have
been completed shall be void because upon the death
of the spouses, only the interest to the property and
not the physical and definite property is vested upon
the heirs. If there are creditors, the interest will only
vest after the payment of the debts.
Liquidation If the decedent is survived by a
for ACP spouse and compulsory heirs, the
terminated ACP evolves into a co-ownership
between the surviving spouse
by death and the heirs.

If surviving spouse remarries, a

mandatory COMPLETE
SEPARATION OF PROPERTY
shall govern his/her subsequent
marriage.
Simultaneous
liquidation This article applies only to those marriages contracted
BEFORE the effectivity of the Family Code.

Before the Family Code took effect, the Supreme Court

ARTICLE 104. Whenever the has not been uniform in its rulings as to whether there
liquidation of the community is need for judicial declaration of nullity of a void
properties of two or more marriages marriage for the purpose of remarriage.
contracted by the same person
before the effectivity of this Code is In the distribution of the Property Between the Two
Marriages, adduce proof as determined by the rules of
carried out simultaneously, the
evidence. In case of doubt, get proportion of
respective capital, fruits and income
of each community shall be 1) capital; and
determined upon such proof as may 2) duration of each marriage.
be considered according to the rules
of evidence. In case of doubt as to
which community the existing
properties belong, the same shall be
divided between the different
communities in proportion to the
capital and duration of each. (189a)
Rosalie O. Abatayo
rosalie.obado.abatayo@gmail.com
1L-M5: Persons and Family Relations
University of Cebu School of Law