Chapter 3 b.

If there was no marriage settlement at the time

System of Absolute Community of the celebration of the marriage, or if the
Arts. 88 104, FC marriage settlement was void.

Absolute Community, In General Commencement

 Can only commence at the precise moment that
 When a couple enters into a regime of absolute
the marriage is celebrated.
community, the husband and the wife become joint
 Any stipulation, express or implied, for the
owners of all the properties of the marriage.
commencement of this regime at any other time
 Whatever property each spouse brings into the
shall be void.”
marriage, and those acquired during the marriage
 Hence, the spouses who reconcile after the finality of
except those excluded under Article 92 of the Family
the decree of legal separation may not adopt
Code form the common mass of the couple’s
absolute community of property as their new regime
properties.
notwithstanding the provisions of Sections 23(c) and
 And when the couple’s marriage or community is
24(a) of the new Rule on Legal Separation.
dissolved, that common mass is divided between the
spouses, or their respective heirs, equally or in the
Prohibited Waiver:
proportion the parties have established, irrespective
 No waiver of rights, interests, shares and effects
of the value each one may have originally owned.
(RISE) of the absolute community during the
marriage.
When Governing
 Exception: When the waiver takes place upon a
 If the marriage is celebrated under the Civil Code (or
judicial separation of property.
prior to August 3, 1988), absolute community shall
 Rationale: Prior to the liquidation of the absolute
govern if it was provided for in the marriage
community, the interest of each spouse in the
settlement between the future spouses.
community property is inchoate or a mere
 If the marriage is celebrated during the effectivity of
expectancy which does not ripen into title until it
the Family Code (on August 3, 1988 or thereafter),
appears that there are assets in the community as
absolute community shall govern if:
a result of the liquidation and settlement.
a. If it was provided for in the marriage settlement
between the future spouses; or
 Hapitan v. Sps. Lagradilla:
o the RTC declared the sale of conjugal property
(house and lot) of the spouses null and void,
which decision was affirmed by the Court of
Appeals.
o Thereafter, the husband entered into an
amicable settlement with the other parties
recognizing the validity of the sale previously
declared void in the court’s decision.
o Since the husband made the amicable
settlement over the wife’s objection, the latter
questioned the validity of said settlement.
o The Court declared the amicable settlement
void. The Court explained that by agreeing to the
validity of the sale, the husband disposed of or
waived his and the wife’s rights over the house
and lot and such disposal or waiver by the
husband at allowed by law.
o Article 124 of the Family Code requires that any
disposition or encumbrance of conjugal property
must have the written consent of the other
spouse; otherwise, such disposition is void.
o Further, under Article 89 of the Family Code, no
waiver of rights, interests, shares, and effects of
the conjugal partnership of gains during the
marriage can be made except in case of judicial
separation of property.
o Clearly, the wife did not consent to the
husband’s disposing or waiving their rights over
the house and lot through the Amicable
Settlement.
Properties Included and Excluded in the Absolute
Community
Proerties Included:
 All the property owned by the spouses at the time of
the celebration of the marriage or acquired during
the marriage, unless excluded in the marriage
settlement or under Article 92 of the FC.
Properties Excluded or Separate Properties :
1. Those excluded from the absolute community in
the marriage settlement;
2. Those acquired DURIN G the marriage BY
GRATUITOUS TITLE by either spouse, including
fruits and income thereof
UNLESS: it is expressly provided by the grantor
that they shall form part of the community property.
3. Those acquired BEFORE the marriage by either
spouse who has “legitimate descendants by a
former marriage,” including the fruits and income
thereof.
4. Those for personal and exclusive use of either
spouse.
Except: jewelry shall form part of the community
property.
 marriage,
including fruits
and income.

Summary of Inclusion/Exclusion

Properties Acquired Prior Properties Acquired Obligations Chargeable to the Absolute Community
to Marriage During the Marriage
1. Support
a. Spouses
RULE Properties Properties acquired
acquired prior to during the marriage are b. common children; and
the marriage are included in the ACP c. legitimate children of either spouse.
included in the
ACP.  BUT support of illegitimate children of either spouse
is chargeable to exclusive property of the illegitimate
EXCEP 1. Those 1. Those acquired parent.
TION excluded in the through gratuitous  However, if the debtor-spouse does not have
marriage title, including fruits property or his/her exclusive property is not
settlement; and income sufficient, the absolute community is required to
UNLESS expressly advance the payment to be deducted from his/her
2. Those for provided by the share upon liquidation of the community.
personal and grantor that they
exclusive use shall form part of the 2. Debts and Obligation
(but jewelries ACP. a. Antenuptial debts
are included in - Contracted before the marriage by either spouse
the ACP). 2. Those for personal are chargeable to the absolute community only if
and exclusive use they have redounded to the benefit of the family.
3. Those acquired (but jewelries are
by either included in the ACP).
b. For those contracted during the marriage:
spouse who
has legitimate i. if contracted by both spouses;
descendants by ii. if contracted by one spouse With the consent
a former of the other;
 iii. If contracted by one spouse without the
consent of the other but only to the extent that
they have redounded to the benefit of the
family;
iv. if contracted by the administrator-spouse for
the benefit of the community.
 For antenuptial debts, those contracted by one
spouse without the consent of the other during the
marriage and those contracted by the administrator
spouse, the burden of proof that such debts were
contracted for the benefit of the community or of the
family lies with the creditor-party litigant claiming as
such.
3. Taxes and Expenses:
a. Taxes falling upon the community property;
b. Taxes falling upon the separate property, if used by
the family;
c. Expenses incurred on the community property,
whether the repair is major or minor;
d. Expenses incurred on a separate property if:
i. incurred during the marriage;
ii. for mere preservation; and
iii. property is used by the family.
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, or other activity
for self-improvement;
6. Expenses of litigation between the spouses.
Unless: the suit is found to be groundless.760
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, for the following:
i. Antenuptial debt by either spouse which did not
benefit the family;
ii. Support of illegitimate children of either spouse;
and
iii. Liabilities incurred by either spouse by reason of a
crime or quasi-delict.
 If the community property is insufficient to cover the
foregoing liabilities except number (7), the spouses
are solidarily liable for the unpaid balance with their
separate properties.
Obligations Chargeable to Separate Property
1. Support of illegitimate children of either spouse is
chargeable to exclusive property of the illegitimate
parent.
2. Liabilities incurred by reason of a crime or
quasidelict.
3. Expenses of litigation between the spouses if found Administration and Disposition of Community
to be groundless. Property
Administration:
 The administration of community property belongs to
4. Losses during the marriage in any game of chance,
both spouses jointly.
betting, sweepstakes or any other kind of gambling,
 Sole Administration is Allowed:
whether permitted or prohibited by law.
1. If one spouse is incapacitated or otherwise unable
5. Debts contracted during the marriage:
to participate in the administration of common
i. By the administrator-spouse which did not
properties, the other may assume sole power of
benefit the community;
administration, without need of court approval or
ii. By one spouse without the consent of the other
authorization.
which did not benefit the family.
2. If a spouse without just cause abandons the other
6. Antenuptial debts by either spouse which did not
or fails to comply with his or her obligations to the
benefit the family
family, the aggrieved spouse may petition the
7. Taxes incurred on a separate property which is not
court for sole administration."
used by the family.
3. During the pendency of a legal separation case,
8. Expenses incorred during the marriage on a
the court may designate either of the spouses as
separate property if:
sole administrator.
i. not for its preservation and
ii. the property is not used by the family.
 The power to administer does not include the
powers of disposition and encumbrance without the
 For Nos. 1, 2 and 6, the absolute community is
authority of the court or the written consent of the
required to advance the payment if the debtor-
other spouse.
spouse does not have separate property or his/her
separate property is insufficient to cover these
Sale or Disposition (Inter Vivos) of Community
obligations, which advances are to be deducted from
Property
the share of the debtor-spouse upon liquidation of
the community.
 Under the regime of absolute community of property,
alienation or encumbrance of community property
must have the written consent of the other spouse or
the authority of the court without which the
disposition or encumbrance is void.
 Neither spouse may likewise donate any
community property without the consent of the
other EXCEPT moderate donations for charity or
on occasions of family rejoicing or family distress.
 Considered as continuing offer:
 Even if the disposition or encumbrance is void,
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 the offerors.
 Flores v. Sps. Linda:
 The RTC denied the creditor the right to judicially
foreclose the mortgage on the ground that the
mortgage of the conjugal property was made
without the consent of the husband. In said case,
the wife signed the promissory note and the Deed
of Real Estate Mortgage, for herself and as
attomey-in-fact of her husband, on October 31,
1995; but the Special Power of Attorney was
executed by the husband only on November 5,
1995.
 When the case reached the Supreme Court, it
was held that while the mortgage is void it is
considered as a continuing offer and the
subsequent execution of the SPA is the
acceptance by the other spouse that perfected the
continuing offer as a binding contract between the
parties, making the Deed of Real Estate Mortgage
a valid contract.
 The transaction executed sans the written
consent of the other Spouse or the proper court
order is void; hence, ratification does not occur,
for a void contract could not be ratified.
 When such consent or authorization is eventual] y
given, what happens is that there will now be a
meeting of the offer and acceptance since the
void transaction is nevertheless considered as a
continuing offer on the part of 'the consenting
spouse and the third person, thereby resulting in
the perfection of the contract.
 Since the provisions of the Civil Code on co-
ownership apply in a suppletory manner to the
regime of absolute community property, may the
disposition or encumbrance made by one spouse of
a community property without the consent of the
other be considered as a valid disposition only of the
share of the consenting spouse in the said property,
applying the provision of Article 493 of the NCC?
 NO. The transaction is void in its entirety because
prior to the liquidation of the absolute community,
the right of either spouse to one-half of the
 community assets does not vest until after the
dissolution and liquidation of the absolute
community, when it is finally determined that, after
settlement of its obligations, there are net assets
left which can be divided between the spouses.
 Hence, Article 493 of the NCC does not apply
pending the dissolution and liquidation of the
absolute community.
 Consent need not be explicit:
 Pelayo v. Perez, the Court held that when a wife
affixed her signature to a Deed of Sale on the
space provided for witnesses, she was deemed to
have given her implied consent to the contract of
sale. The Court explained that the consent of a
spouse to the disposition does not have to be
explicit or set forth in any particular document so
long as it is shown by acts of the spouse that such
consent or approval was indeed given.
 Court authorization: The rules on summary judicial
proceedings under the Family Code govern the
proceedings under Articles 96 and 124 for the
purpose of obtaining court authorization.
 But the rules on summary proceedings shall apply
only when the spouse is absent, or separated in
fact or has abandoned the other or consent is
withheld or cannot be obtained.
 Said rules do not apply in cases where the non-
consenting spouse is incapacitated or
incompetent to give consent. In the latter cases,
the proper remedy is judicial guardianship
proceedings under Rule 93 of the Rules of Court.
 Disposition by Will: Either spouse may dispose by
will of his or her share in the community property.
Dissolution or Termination of Absolute Community
Causes of dissolution or termination of absolute
community:
1. Death of either spouse;
 Mandatory requirement: The surviving
spouse must liquidate the community property,
either judicially or extrajudicially, within one
year from the death of the deceased spouse.
 Effect of failure to comply:
i. Upon lapse of the one-year period and no
liquidation is made, any disposition or
encumbrance involving the community
property of the terminated marriage shall be
void.
 But in Heirs of Patricio Go, Sr. and
Marta Barola v. Seruacio: it was held
that the disposition by sale of a portion of
the conjugal property by the surviving
spouse without the prior liquidation
mandated by Article 130 of the Family
Code which is the counterpart provision of
Article 103 in the regime of conjugal
partnership of gains, is not necessarily
 void if said portion has not yet been
allocated by judicial or extrajudicial
partition to another heir of the deceased
spouse.
 Instead, the sale is valid insofar as the
ideal share of the selling co-owner/coheir
in the property is concerned but without
affecting the ideal shares of the other co-
owners.
ii. If the surviving spouse contracts another
marriage without compliance with the
foregoing requirement, a mandatory regime
of complete separation shall govern the
property relations of the subsequent
marriage.
2. Finality of a decree of legal separation
 Rule on separation in fact:
 The separation in fact or separation without a
decree of legal separation between husband and
wife does not affect the regime of absolute
community.
 Effects of separation in fact
a. the spouse who leaves the conjugal home or
refuses to live therein, without just cause, shall
have no right to be supported;
b. when the consent of one spouse to any transaction
of the other is required by law, judicial authorization
shall be obtained in a summary proceeding,
c. If the community property is not sufficient, the
spouse present may be given judicial authorization,
upon petition in a summary proceeding, for the
administration or encumbrance of any specific
property of the other spouse to satisfy the latter’s
share
d. 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 for
receivership, judicial separation of property or for
authority to be the sole administrator of the
absolute community.
 Presumption of abandonment:
 A Spouse is deemed to have abandoned the
other when he or she left the conjugal
dwelling without any intention of returning.
 A 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.
3. Finality of a judgment of annulment.
4. Finality of judgment declaring the marriage void.
 Applicable only to marriages declared void for failure
to comply with Article 40 of the FC because this is the
only void marriage where absolute community may
possibly exist.
5. Upon judicial separation of property during the divided equally between property at the time of the
marriage, either voluntarily or for a cause. the spouses, unless a celebration of the
different proportion or marriage and the market
division was agreed upon value at the time of its
Procedure for Liquidation of Absolute Community in the marriage settlement, dissolution.
or unless there has been
1. Inventory, listing separately the exclusive properties a voluntary waiver of such
and the properties of the absolute community. share.
2. Payment of debts and obligations of the absolute
community. In case of insufficiency of the absolute  In the regime of absolute community of property, “net
community properties, the spouses shall be solidarily profits“ is computed based on the following
liable for the unpaid balance with their separate procedures:
properties. a. Get the market value of the absolute community
3. Whatever remains of the exclusive properties of the properties at the time of the community's
spouses shall thereafter be delivered to each of them. dissolution;
b. From the totality of the market value of all the
properties, subtract the debts and obligations of
4. The net remainder of the properties of the absolute the absolute community;
community shall constitute its “net assets,” which shall c. The result of the foregoing procedures shall be
be divided equally between the spouses, unless a “net assets” or net remainder of the properties of
different proportion or division was agreed upon in the the absolute community;
marriage settlement, or unless there has been a d. Deduct the market value of the properties at the
voluntary waiver of such share. time of marriage. The result is the “net profits”
 The “net assets” is different from “net profits.”
“net assets” “net profits.” 5. Delivery of presumptive legitimes of the common
Not subject. Subject to forfeiture under children
Articles 43(2) and 63(2) of
the FC.
Net remainder of the Refer to the increase in
properties of the absolute value between the market
community which shall be value of the community
6. The conjugal dwelling, including the lot shall be
adjudicated to the spouse with whom the majority of the
common children choose to remain unless otherwise
agreed upon by the parties. In case there is no majority,
the court shall decide.
Chapter 4
Conjugal Partnership of Gains
Arts. 105 133, FC
Conjugal Partnership, In General
 This is a special type of partnership, where 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.
 Hence, the provisions of the Civil Code on partnership
apply to this regime in a suppletory character.
 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 settlement.
When Governing
 If the marriage is celebrated under the Civil Code
or prior to August 3, 1988, the regime of conjugal
partnership of gains shall govern if:
i. If it was provided for in the marriage settlement
between the future spouses; or
ii. If there was no marriage settlement at the time of
the celebration of the marriage, or if the marriage
settlement was void.
 If the marriage is celebrated during the effectivity
of the Family Code on August 3, 1988 or thereafter,
conjugal partnership of gains shall govern if it was
provided for in the marriage settlement between
the future spouses.
 If the spouses got married prior to the effectivity of
the Family Code without a marriage settlement, in
which case the property relation is that of conjugal
partnership under the Civil Code, may it be argued
that pursuant to the transitory provisions of the
Family Code such property relation was changed to
absolute community when the Family Code took
effect in 1988 considering that no vested or
acquired rights are impaired?
 Pana v. Heirs of Jose Juanite, Sr, both the RTC and
the CA took the position that such property relation
was changed to absolute community upon the
effectivity of the Family Code considering that no
vested or acquired rights are impaired.
 The Supreme Court did not, however, agree as it
ruled that Article 256 of the Family Code does not
intend to reach back and automatically convert into
absolute community of property relation all conjugal
partnerships of gains that existed before 1988
excepting only those with prenuptial agreements.
  Commencement
 Can only commence at the precise moment that the
marriage is celebrated.
 Any stipulation express or implied, for the
commencement of this regime at any other time shall
be void.
 Hence, the spouses who reconcile after the finality of
the decree of legal separation may not adopt conjugal
partnership of gains as their new regime
notwithstanding the provisions of Sections 23(c) and
24(a) of the new Rule on Legal Separation.
 Prohibited Waiver:
 RULE: No waiver of rights, interests, shares and
effects (RISE) of the conjugal partnership during the
marriage.
 EXCEPTION: When the waiver takes place upon a
judicial separation of property.
 Reason for the rule:
- Prior to the liquidation of the conjugal partnership,
the interest of each spouse in the conjugal assets
is inchoate or a mere expectancy which does not
ripen into title until it appears that there are assets
in the community as a result of the liquidation and
settlement.
- Thus, the right of the husband or wife to one-half
of the conjugal assets does not vest until the
dissolution and liquidation of the conjugal
partnership, or after dissolution of the marriage,
when it is finally determined that, after settlement
of conjugal obligations, there are net assets left
which can be divided between the spouses or
their respective heirs.
Properties Included and Excluded in the Conjugal
Partnership
Properties Excluded or Separate Properties
1. Properties acquired PRIOR to the marriage;
EXCEPT:
a. Fruits and income of said properties, which shall be
included in the conjugal partnership, but only the
“net fruits” shall be included.
b. Those included therein in the marriage settlement,
subject to the 1/5 limitation under Article 84 and the
rule in Article 92(3) of the FC, Which apply by
analogy.
2. Properties acquired DURING the marriage by
GRATUITOUS title;
 Property donated or left by will to the spouses
jointly and with designation of determinate shares,
shall pertain to the donee-spouse as his or her
exclusive property.
 In the absence of designation, they shall share
alike, without prejudice to the right of accretion
  If retirement benefits, pensions, annuities,
gratuities, usufructs and similar benefits are
obtained out of pure liberality of the donor, then
such benefit becomes separate property of the
grantee-spouse. If such benefit is simply an
accumulation or deductions from money earned
during the marriage or from salaries of either
spouse, then such benefit becomes conjugal
partnership property.
3. Properties acquired by right of redemption, by
barter or by exchange with property belonging to
only one of the spouses;
4. Properties purchased with exclusive money.
Properties Included:
1. Properties acquired by onerous title during the
marriage at the expense of common fund.
 Requisites:
i. Acquisition is made during the marriage;
ii. Thru onerous title; and
iii. At the expense of common fund.
 Presumption of conjugality
 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 conjugal unless the
contrary is proved.
 Registration of a property alone in the name of
one spouse does not destroy its conjugal nature
and it is not conclusive evidence of the exclusive
ownership of the husband or the Wife.
 Hence, the presumption is not rebutted by the
mere fact that the certificate of title of the property
or the tax declaration is in the name of one of the
spouses only, or that the registration of the trade
name is in the name of the wife alone or that a
credit is loaned during the marriage by one of the
spouses only what is important is that the
acquisition is made “during the marriage.
 Proof of acquisition of property during the marriage
is a condition sine qua non for the operation of the
presumption in favor of conjugal partnership
 It is not necessary to prove that the property was
acquired with the funds of the conjugal partnership,
otherwise, the legal presumption set forth in the law
will be a superfluity
 The presumption, however, refers only to the
property acquired during the marriage and does not
operate when there is no showing as to when
property alleged to be conjugal was acquired.
 Thus, when the property is registered in the name
of only one spouse and there is no showing as to
when the property was acquired by same spouse,
this is an indication that the property belongs
exclusively to the said spouse
 When there is no showing as to when the property
was acquired, the presumption cannot prevail
 when the title is in the name of only one spouse of the spouse to whom the right of redemption
and the rights of innocent third parties are pertains, subject, however, to reimbursement.
involved?
2. Property obtained during the marriage from the
 Under Philippine law and jurisprudence, if the
labor, industry, work or profession of either or both
property is registered in the name of one of the
spouses.
spouses, with a description that he or she “is
married to” the other spouse, the same is merely 3. Fruits from conjugal properties and “net fruits”
descriptive of the civil status of the registered from separate properties.
owner.
 Net fruits
 Note that in numerous cases where the Court
- remainder of the fruits after deducting the amount
held that registration of the property in the name
necessary to cover the expenses of administration
of only one spouse does not negate the possibility
of said exclusive property.
of it being conjugal or community property, there
was proof that the properties, though registered in
 Principal and interest payable in installments: If
the name of only one spouse, were indeed either
credit is payable within a period of time and
conjugal or community properties.
belongs only to one of the spouses:
 Sums representing installments on the principal,
 But even if the property was acquired during the
exclusive property of the spouse;
marriage, the presumption in favor of conjugality
 But interest on the principal falling due during
cannot be applied with respect to private lands if
the marriage, conjugal property
one of the spouses is an alien for this will be in
violation of Section 7, Article XII of the 1987 4. Share in the hidden treasure and those acquired
Constitution which prohibits aliens from acquiring through fishing or hunting.
private lands in the Philippines.
5. Those acquired through chance, such as winnings
from gambling or betting. However, losses shall be
Exception:
borne exclusively by the loser spouse.
 For property acquired during the marriage through
the exercise of right of redemption, even if the 6. Livestock existing at the time of the dissolution of
redemption price comes from conjugal funds, the the partnership, in excess of the number of each kind
property so acquired shall be the separate property brought to the marriage by either spouse.
  If cost of improvement and any resulting increase in
value are more than the value of the property at
the time of improvement, the entire property shall
Property Bought through Installment: belong to the conjugal partnership
 Requisites:  If less than, the entire property shall belong to the
i. Property is bought on installment prior In the owner-spouse.
marriage;  In either case, there shall be reimbursement upon
ii. Payment is completed only during the marriage; the liquidation of the conjugal partnership and
and ownership of the entire property shall be vested only
iii. Paid party from exclusive funds and partly from upon reimbursement.
conjugal funds.
 The obligation to reimburse for the cost of the
 Rules in determining ownership improvements, under Article 120 of the FC, rests
i. If full ownership was vested prior to marriage, on the spouse upon whom ownership of the entire
exclusive property of the buyer; property is vested there is no such obligation on
ii. If full ownership was vested during the marriage, the part of the purchaser of the property, in case
conjugal property; the property is sold by the owner-spouse prior to
iii. In either case, there shall be reimbursement upon reimbursement.
liquidation of the partnership.
Summary of Inclusion/Exclusion
Improvement on Separate Property
Properties Acquired Before Properties Acquired
 Requisites:
Marriage During Marriage
i. An improvement is made on a separate property
of either spouse; Gen. Rule: Properties If acquired through
ii. Improvement is made during the marriage; acquired before gratuitous title,
iii. At the expense of the conjugal partnership or the marriage are - NOT included in the
through the acts or efforts of either or both not included in CPG but the fruits and
spouses. the CPG, but income of said
fruits and properties are included
Rules in determining ownership income of said in the CPG.
properties
accruing during If acquired through liquidation.
the marriage are onerous title and:
included in the 1. Using exclusive Exception When included
CPG. money or funds, the : in the CPG in
property so acquired is the marriage
exclusive property not settlement
included in the CPG. subject to the
following
2. Using conjugal limitations:
funds, the property so
acquired is generally 1. May not
included in the CPG exceed more
except if the than 1/5 of
acquisition is by way of present
exercise of right of property;
redemption. In the and
latter, the property
belongs to the owner 2. May not
of the right of include
redemption regardless properties
of the source of funds acquired
used in the prior to
redemption. If the right marriage if
pertains to only of the either of the
spouse, the property is future
exclusive property of spouses has
said spouse even if legitimate
conjugal funds are descendants
used in the acquisition. in a former
marriage.
In this case, the CPC
shall only be
reimbursed upon its

Obligations Chargeable to the Conjugal Partnership
1. Support of:
a. Spouses;
b. common children; and
c. legitimate children of either spouse
 BUT support of illegitimate children of either spouse
is chargeable to exclusive property of the illegitimate
Thus:
parents
2. Debts and Obligation
a. Antenuptial debts
- Contracted before the marriage by either spouse
are chargeable to the conjugal partnership if they
have redounded to the benefit of the family.
b. For those contracted during the marriage:
i. if contracted by both spouses;
ii. if contracted by one spouse With the consent of
the other;
iii. If contracted by one spouse without the consent
of the other but only to the extent that they have
redounded to the benefit of the family;
iv. if contracted by the administrator-spouse for the
benefit of the partnership.
 Personal debts contracted by either spouse without
consent of the other spouse:
 If contracted for the benefit of the conjugal
partnership or for the benefit of the family, debt is
chargeable to the conjugal partnership;
 If not, it is chargeable against the exclusive
property only of the debtor-spouse.
 Presumption: If either spouse contracts an
obligation on behalf of the family business, there is a
legal presumption that such obligation redounds to
the benefit of the conjugal partnership.
 If the husband himself is the principal obligor in the
contract, i.e. , the direct recipient of the money and
services to be used in or for his own business or
profession, the transaction falls within the term
“obligations for the benefit of the conjugal
partnership.”
 But if the money or services are given to another
person or entity and the husband acted only as a
surety or guarantor, the transaction cannot by itself
be deemed an obligation for the benefit of the
conjugal partnership. It is for the benefit of the
principal debtor and not for the surety or his family.
3. Taxes and Expenses
a. Taxes falling upon the conjugal partnership property
and those falling upon the separate property;
b. Expenses incurred on the conjugal partnership
property, whether the repair is major or minor;
c. Expenses incurred on a separate property if:
i. incurred during the marriage; and
ii. for mere preservation.
d. Expenses to enable spouse to commence or
complete a professional or vocational course, or
other activity for self-improvement;
e. 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, or other activity
for self-improvement;
f. Expenses of litigation between the spouses.
UNLESS: the suit is found to be groundless.
 If conjugal partnership is insufficient, the spouses are
solidarily liable for the unpaid balance with their
separate properties.”
Obligations Chargeable to Separate Property
1. Support of illegitimate children of either spouse is
chargeable to exclusive property of the illegitimate
parent
2. Liabilities incurred by reason of a crime or quasidelict.
3. Expenses of litigation between the spouses if found to
be groundless.
4. Losses during the marriage in any game of chance,
betting, sweepstakes or any other kind of gambling,
whether permitted or prohibited by law.
5. Debts contracted during the marriage:
a. By the administrator-spouse which did not beneiit
the community;
b. By one spouse without the consent of the other
which did not benefit the family.
6. Antenuptial debts by either spouse which did not
benefit the family.
7. Expenses incurred during the marriage on a separate
property if the same is not for its preservation.
 For Nos. 1, 2 and 6, said obligations can be
enforced against conjugal partnership provided that:
a. the spouse who is bound has no exclusive
properties or the same are insufficient; and
b. the responsibilities of the conjugal partnership
enumerated in Article 121 have already been
covered, subject to reimbursement upon
liquidation of the partnership.
 In case of absence or insufficiency of separate
property of the debtor-spouse, the foregoing
liabilities can be enforced against the assets of the
conjugal partnership provided that the
responsibilities of the conjugal partnership
enumerated in Article 121 of the Family Code have
already been covered.
  Article 122 of the Family Code allows payment of
criminal indemnities even prior to the liquidation of
the conjugal partnership, so long as the
responsibilities enumerated in Article 121 have been
covered.
 The Court explained that such is not altogether
unfair since Article 122 of the Family Code states
that “at the time of liquidation of the partnership such
offending spouse shall be charged for what has
been paid for the purposes above-mentioned.
Administration and Disposition of Conjugal Property
Administration
Rule: belongs 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 5 years
from the date of the contract implementing such decision.
Note: The 5-year prescriptive period in Article 124, par. 1,
of the Family Code applies only in cases where the
husband made a decision in the exercise of the powers of
administration of conjugal partnership properties which
resulted in disagreement between the spouses.
The same does not apply in case of disposition or
encumbrance of a conjugal property without the consent
of the other spouse
In the latter case, the disposition or encumbrance is void
and the action to declare its nullify is imprescriptible.
Sole administration
 If one spouse is incapacitated or otherwise
unable to participate in the administration of
conjugal properties, the other may assume sole
power of administration, without need of court
approval or authorization.
 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 sole administration.
 During the pendency of a legal separation
case, the court may designate either of the
spouses as sole administrator.
Reminder: The power to administer does not include
the powers of disposition and encumbrance without
the authority of the court or the written consent of
the other spouse.
Disposition or Encumbrance of Coniugal Property:
(a) Governing law:
i. Rule under the Family Code:
The present law specifically requires the written consent
of the other spouse, or authority of the court for the
disposition or encumbrance of conjugal partnership
property without which, the disposition or encumbrance
shall be void.
Under Article 124 of the Family Code, the transaction
executed sans the written consent of (the other spouse)
or the proper court order was void; hence, ratification did
not occur, for a void contract could not be ratified.
Even if the other spouse actively participated in
negotiating for the sale of the property, the other
spouse's written consent to the sale is still required by
law for its validity.
In Ravina u. Villa Abrille,however, the Court held that if
the sale was with the knowledge but without the approval
of the wife, thereby resulting in a disagreement, such
sale is annullable at the instance of the wife who is
given 5 years from the date the contract implementing
the decision of the husband to institute the case.
[Note: The Court obviously applied the first paragraph of
Article 124 of the Family Code in deciding the case, but
its application is totally misplaced. Note that the 5-
year prescriptive period mentioned in the first paragraph
of Article 124 refers only to the exercise of the powers
of administration.
 The remedy contemplated in the first paragraph
is not one of annulment of the contract, but its
rescission, which presupposes the existence of a
valid contract but prejudicial to the family or to the
conjugal partnership.
 The second paragraph of Article 124 makes it
clear that the powers of administration do not
include disposition or encumbrance of conjugal
partnership property.
 With respect to disposition and encumbrance,
the clear requirement of the law is that the same
must be made with the written consent of the
other spouse (aside from the consent of the
administrator-spouse) or authority of the court;
otherwise, the disposition or encumbrance is void
and not merely annullable.
 Being a void transaction, the action or defense
based on its nullity is imprescriptible.
 Since the disposition or encumbrance is void, the
right to bring an action to declare the transaction
void is not limited to the spouse whose consent
was not obtained such that upon the death of the
latter, the right is passed on to the heirs.908]
Disposition or encumbrance before August 3. 1988:
 However, when the sale is made before the
effectivity of the Family Code, the applicable law
is the Civil Code.
 In other words, the rule under Article 124 of the FC
applies only if the disposition or encumbrance
takes place during the effectivity of the Family
Code.

Rule under the Civil Code:
 Article 173 of the Civil Code provides that the
disposition of real property of the conjugal
partnership by the husband without the wife's
consent is not void but merely voidable and the
wife could, during the marriage and within 10
years from the questioned transaction, seek its
annulment.
In Felipe u. Aldon
 the SC applied Article 173 in a case where the
wife sold some parcels of land belonging to the
conjugal partnership without the consent of the
husband.
 It was therein ruled that the contract of sale was
voidable subject to annulment by the husband.
Contract, void in its entirety:
In the sale of conjugal properties, the consent of both the
husband and the wife is now required and the absence of
the consent of one renders the entire sale null and void
including the portion of the conjugal property pertaining to
the spouse who contracted the sale. n other words, sale
is In its entirety.
(i) Reason for the Rule:
-The right of the husband or the wife to one-half of
the conjugal assets does not vest until the
liquidation of the conjugal partnership, or after
dissolution of the marriage, when it is finally
determined that, after settlement of conjugal
obligations, there are net assets left which can be
divided between the spouses or their respective
heirs.
-Prior thereto, the interest of each spouse in the
conjugal assets is inchoate, a mere expectancy,
which constitutes neither a legal nor an equitable
estate. Hence, either of the spouses may not give
what he has not.9
(ii) Article 493 of Civil Code. not applicable in
conjugal partnership:
In Homeowners Savings & Loan Bank u. Dailo,
-the bank contended that the mortgage of a
conjugal property by the husband without the
consent of the wife is not void in its entirety, but
valid with respect to the share of the consenting
spouse, citing the provisions of Article 493 of the
NCC which allows a co-owner to dispose of his
ideal share without the consent of the other.
-The SC held, however, that the rules on co-
ownership, including Article 493, do not apply to
conjugal partnership of gains because the said
property regime is a special type of partnership.
Hence, it is the rules on partnership which
apply suppletory to conjugal partnership of
gains and not the rules on co-ownership.
Buyer in good faith:
In the cases of Bautista v. Silva, Ravina v. Villa Abrille
and Aggabao vs Paruan,the Court erected a standard
to determine the good faith of the buyers dealing with a
seller who had title to and possession of the land but
whose capacity to sell was restricted, in that the consent
of the other spouse was required before the conveyance,
declaring that in order to prove good faith in such a
situation, the buyers must show that they inquired not
only into the title of the seller but also into the sellers
capacity to sell.
Thus, the buyers of conjugal property must observe
two kinds of requisite diligence, namely:
(a) the diligence in verifying the validity of the title
covering the property; and
(b) the diligence in inquiring into the authority of the
transacting spouse to sell conjugal property in
behalf of the other spouse.
Dissolution or Termination of Conjugal Partnership
Procedure for Liquidation of Absolute Community
[Governed by same rules applicable to absolute
community]
[Chapter 5: Separation of Property of the Spouses]
[Chapter 6: Regime of Separation of Property]
(Arts. 134 - 146, FC)
Separation of Property of Spouses During the
Marriage
When Can It Govern:
a) By express declaration in the marriage
settlement:
Reminders:
(i) If separation of property is agreed upon
in the marriage settlement, the spouses may
no longer adopt absolute community or
conjugal partnership during the marriage
because these two regimes can only
commence at the precise moment of the
celebration of the marriage.
(ii) The separation may refer to present or
future property or both.
(iii) The separation may be total or partial.
In case of partial separation, properties not
agreed upon as separate shall pertain to the
absolute community.
b) By judicial order
 (i) Upon finality of a decree of legal separation;
(ii) Upon a joint petition of the spouses for
voluntary separation (or without need for a
cause);
(iii) Upon petition for judicial separation due to a
sufficient cause.
c) By failure of the surviving spouse to liquidate
the absolute community or conjugal
partnership of gains of a previous marriage
which has been terminated by death within the
1-year period required by law prior to
contracting another marriage.
The subsequent marriage is mandatorily governed by a
regime of complete separation.
Judicial Separation for Sufficient Cause:
Grounds:
(i) Other spouse has been sentenced to a penalty
which carries with it civil interdiction;
(ii) Other spouse has been judicially declared an
absentee;
(iii) Other spouse has lost parental authority by
court decree;
(iv) Other spouse has abandoned the petitioner
or has failed to comply with marital obligations
(v) The administrator-spouse in the marriage
settlement has abused his/her power;
(vi) That spouses have been separated in fact
for at least one year and reconciliation is highly
improbable.
Reminder: In (i) to (iii), presentation of the final judgment
is enough basis for the grant of the decree of judicial
separation.
Revival of Previous Property Regime:
Grounds for revival:
(i) If voluntary, the parties may agree to the revival
even in the absence of a reason/ ground.
However, no voluntary separation may thereafter
be granted.
(ii) If for sufficient cause, upon cessation of the
ground which was the basis of the judicial order for
separation. If judicial separation is for a sufficient a
cause, the spouses can again petition for judicial
separation so long as there is a new
cause/ground.
Procedure for revival: [same as those followed upon
reconciliation of the spouses after the finality of legal
separation]
Transfer of Administration of Exclusive Property to
Another Spouse during the Marriage:
1. By agreement:
Requisites:
(i) By means of a public instrument;
 (ii) To be recorded in the registry of property of
the place where the property is located.
2. By order of the court upon petition, based on any
of these grounds:
(i) Other spouse becomes the guardian of the
other;
(ii) Other spouse is judicially declared an
absentee;
(iii) Other spouse is sentenced to a penalty which
carries with it civil interdiction; or
(iv) Other spouse becomes fugitive from justice or
hiding as an accused in a criminal case.934
Automatic termination of administration:
 The alienation of any exclusive property of a spouse
administered by the other automatically terminates
the administration over such property and the
proceeds of the alienation shall be turned over to the
owner-spouse.
Chapter 7
Property Regime of Unions Without Marriage
(Arts. 147 - 148, FC)
Property Regimes in Void Marriages
Rule:
-In a void marriage, regardless of the cause thereof, the
property relations of the parties during the period of
cohabitation is governed by the provisions of Article
147 or Article 148, as the case may be, of the Family
Code.
- In other words, there is no absolute community or
conjugal partnership in a void marriage at any point, even
during the period prior to declaration of nullify.
- Thus, the rules which are set up to govern the
liquidation of either the absolute community or the
conjugal partnership of gains, the property regimes
recognized for valid and voidable marriages, are
irrelevant to the liquidation of the coownership between
common-law spouses or spouses of void marriages.
-In the liquidation of the properties of the parties to a void
marriage, the provisions on co-ownership under the
Civil Code should apply and such liquidation need not be
made in the same proceeding for declaration of nullify of
marriage.
Exception:
-If the subsequent marriage is void by reason of non-
compliance with Article 40 (but the prior marriage is
indeed void ab initio), the property relations of the
parties to the subsequent marriage is either absolute
community or conjugal partnership of gains, as the
case may be, unless the parties agree to a complete
separation of property in a marriage settlement entered
into before the marriage.
-In other words, the rules applicable to valid and voidable
marriages are also applicable to this kind of void
marriage but only for the purpose of determining its
property regime.
As such. Section 19(1) ofA.M. No. 02- ll-10-SC, which
requires the liquidation, partition and distribution of
properties prior to the issuance of decree of nullify of the
marriage applies only to a void marriage under Article 40
of the Family Code when said rule mentions of "decree of
absolute nullify" and not to a marriage declared void by
reason of psychological incapacity under Article 36 of the
Family Code.
In the latter case, since the applicable property regime is
that provided in Article 147 of the Family Code, the
declaration of nullity can already be made even without
waiting for the liquidation of the properties of the parties
because it is not necessary to liquidate the properties of
the spouses in the same proceeding for declaration of
nullify of marriage.
In Article 147, what governs the liquidation of
properties owned in common are the rules on co-
ownership.
In Article 40, however, since the property relations of
the parties is governed by absolute community of
property or conjugal partnership of gains, there is a
need to liquidate, partition and distribute the
properties before a decree of absolute nullify could
be issued.
Property Regime Under Article 147, FC
Applicability:
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.942
Requisites:
For Article 147 to operate, the man and the woman:
(i) must be capacitated to marry each other;
(ii) live exclusively with each other as husband
and wife; and
(iii) their union is without the benefit of marriage or
their marriage is void.
Reminder: The term "capacitated" in the provision (in
the first paragraph of the law) refers to the legal
capacity of a party to contract marriage, i.e., any
"male or female of the age of eighteen years or upwards
not under any of the impediments mentioned in Articles
37 and 38 of the Code.
Note that while Article 147 also applies to union without
marriages, or those merely cohabiting as husband and
wife without the benefit of marriage, it is necessary that
they must be capitated to marry each other and that they
are living "exclusively as husband and wife.
As such, Article 147 does not apply to cases of multiple
alliances, even if in relation to each union the parties are
capacitated to marry each other. In the same way, even if
it is a case of exclusive cohabitation but if the parties are
not capacitated to marry each other, Article 147 does not
apply. In both situations, the property regime of the
parties shall be that which is provided in Article 148 of the
Family Code.
Examples of Marriages Governed by Article 147:
(i) Marriages declared void by reason of
psychological incapacity;
(ii) Marriages celebrated without a valid marriage
license.
Rule on Distribution of Properties:
(a) Wages and Salaries:
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, even if
only one party earned the wages and the other did not
contribute thereto.
(b) Property Acquired During Cohabitation:
Under this property regime, properties acquired by both
parties during their union through their work and industry
shall be governed by the rules on equal co-ownership
and are prima facie presumed to have been obtained
through their joint efforts.
 Article 147 creates a presumption that properties
acquired during the cohabitation of the parties
have been acquired through their joint efforts, work
or industry and shall be owned by them in equal
shares.
 It further provides that a party who did not
participate in the acquisition by the other party of
any property shall be deemed to have contributed
jointly in the acquisition thereof if the former's
efforts consisted in the care and maintenance of
the family and of the household.
 Efforts in the care and maintenance of the
family and household are regarded as
contributions to the acquisition of common
property by one who has no salary or income or
work or industry.
 Unlike the conjugal partnership of gains, the fruits
of the couple's separate property £ire not,
however, included in the co-ownership.
(i) During the cohabitation, the parties are
prohibited from disposing by acts inter vivos or
encumbering their respective shares in the co-
owned property without the consent of the other.
In other words, Article 493 of the NCC does not
apply. But after the cohabitation, Article 493 of the
NCC will already be applicable.
 (ii) In MBTC v. Pascual,the validity of an
encumbrance of the entire property made by one
of the parties without the other's consent was
upheld by the SC with respect only to the share" of
the consenting co-owner, applying the provision of
Article 493 of the NCC.
In this case, the encumbrance was made after the
termination of the cohabitation (or after the finality
of the judgment declaring the marriage void by
reason of psychological incapacity).
(iii) If the cohabitation is by reason of a void
marriage and only one of the parties acted in bad
faith, the share of the latter in the coownership
shall be forfeited in favor of the following, which
forfeiture shall take place upon the termination of
the cohabitation:
1) the common children, if any;
2) in default of common children, the surviving
descendants of the party who acted in bad
faith;
3) in the absence of descendants, the innocent
party.
Property Regime Under Article 148, FC
Applicability:
 Article 148 of the Family Code applies in cases
where the parties in union are incapacitated to
marry each other.
 It refers to the property regime of bigamous
marriages, adulterous relationships, relationships
in a state of concubine, relationships where both
man and woman are married to other persons,
multiple alliances of the same married man.
Requisites: For Article 148 to operate, the man and the
woman:
1. must be incapacitated to marry each other or they
do not live exclusively with each other as husband
and wife; and
2. their union is without the benefit of marriage or
their marriage is void.
Retroactive application of Art. 148 FC:
 Although adulterous cohabitation of the parties
commenced before the effectivity of the Code on
August 3,1988, Article 148 thereof applies
because this provision was intended precisely to
fill up the hiatus in Article 144 of the Civil Code.
 Before Article 148 of the Family Code was
enacted, there was no provision governing
property relations of couples living in a state of
adultery or concubinage because Article 144 of the
Civil Code applies only to a relationship between a
man and a woman who are not incapacitated to
marry each other, or to one in which the marriage
of the parties is void from the beginning.
 Hence, even if the cohabitation or the acquisition
of the property occurred before the Family Code
took effect, Article 148 governs

Rule on Distribution of Properties:
 The words "married to” preceding the name of a
Wages and salaries:
Wages and salaries earned by each party belong to him
or her exclusively.
Property acquired during cohabitation:
 Under this regime, only the properties acquired by
both of the parties through their actual joint
contribution of money, property and industry shall
be owned by them in common in proportion to
their respective contributions.
 Hence, mere cohabitation without proof of
contribution will not result in a co-ownership.Such
contributions and corresponding shares were
prima facie presumed to be equal.
 However, for this presumption to arise, proof of
actual contribution is required.
 Stated otherwise, co-ownership will only be up to
the extent of the proven actual contribution of
money, property or industry. If the actual
contribution of the party is not proved, there will be
no co-ownership and no presumption of equal
shares.
 The fact that the controverted property was titled in
the name of the parties to an adulterous
relationship is not sufficient proof of co-ownership
absent evidence of actual contribution in the
acquisition of the property. Registration under the
Torrens title system merely confirms, and does not
vest title.
spouse are merely descriptive of the civil status of
the registered owner and such words do not prove
co-ownership under Article 148.
a. If one of the parties in the cohabitation is
validly married to another, his or her share
in the co-ownership shall accrue to the
absolute community or conjugal
partnership existing in such valid marriage.
In Belcodero v. Court of Appeals, the
Court held that property acquired by a man
while living with a common-law wife during
the subsistence of his marriage is conjugal
property, even when the property was titled
in the name of the common-law wife. In
such cases, a constructive trust is deemed
to have been created by operation of
Article 1456 of the Civil Code over the
property which lawfully pertains to the
conjugal partnership of the subsisting
marriage.
b. If there is no such valid marriage, the share
of the party who acted in bad faith (whether
either or both acted in bad faith) shall be
forfeited, which forfeiture shall take place
upon the termination of the cohabitation, in
favor of
 1) the common children, if any;
2) in default of common children, the
surviving descendants of the party
who acted in bad faith;
3) in the absence of descendants, the
innocent party.
Not Applicable to Same-Sex Marriafife/Cohabitation:
 Article 148 does not apply to a cohabitation of
parties coming from same sex, or to a same-sex
marriage.
 Note that Article 148 refers to cohabitations
between a man and a woman.
 With respect to the property relations of same-sex
cohabitations, the same shall be governed by the
applicable provisions of the Civil Code on
Property.
[Title V — The Family]
[Chapter 1: The Family as an Institution]
(Arts. 149-151, FC)
Family Relations
Extent of "Family Relations":
(i) Between husband and wife
(ii) Between parents and children
(iii) Among other ascendants and descendants;
and
(iv) Among brothers and sisters, whether of fulll
or half-blood.
Note: According to the Court, this enumeration is
exclusive and defines the operation of Article 151 of
the Family Code.
Earnest Efforts Toward Compromise:
Rule:
 If suit is between "members of same family, there
must be prior earnest efforts towards a
compromise; otherwise, the case must be
dismissed.
 Hence, the attempt to compromise as well as its
failure or inability to succeed is a condition
precedent to the filing of a suit between members
of the same family; the absence of such allegation
in the complaint being assailable at any stage of
the proceeding, even on appeal, for lack of cause
of action.
 Stated otherwise, a party's failure to comply with
Article 151 of the FC before filing a complaint
against a family member would render such
complaint premature.
 However, the failure of a party to comply with this
condition precedent is not a jurisdictional defect.
  If the opposing party fails to raise such defect in a
motion to dismiss, such defect is deemed waived.

Meaning of "members of same family":

 The phrase "members of the same family" in
Article 151 of the FC must be understood as
referring to the relations enumerated in Article
150 of the FC.

 Hence, if there is a stranger to the suit, such as a

brother-in-law or a sister-in-law, compliance
with Article 151 is not jurisdictional for the
maintenance of the action. [Chapter 2: The Family Home]
(Arts. 152-162, FC)
Cases not subject to compromise:
(i) civil status of persons;
(ii) validity of marriage or legal separation; Family Home
(iii) any ground for legal separation;
(iv) future support; A family home is the dwelling place of a person and his
(v) jurisdiction of courts; and family. It is said, however, that the family home is a real
(vi) future legitime. right, which is gratuitous, inalienable and free from
attachment, constituted over the dwelling place and the
land on which it is situated, which confers upon a
particular family the right to enjoy such properties, which
must remain with the person constituting it and his heirs.
It cannot be seized by creditors except in certain special
cases.

How Constituted:
 prior to effectivity of after the effectivity of  Failure to comply with either not exceed certain
Family Code: Family Code one of these two modes of amounts depending
 If the family home was  a family home is constitution will bar a upon the area where
constructed before the deemed constituted judgment debtor from it is located.
effectivity of the FC or on a house and lot availing of the privilege  Further, the debts
before August 3,1988, then from the time it is incurred for which
it must have been occupied as a the exemption does
constituted either family residence. not apply as
judicially or  There is no need to provided under
extrajudicially as constitute the Article 155 for which
provided under Articles same judicially or the family home is
225, 229-231 and 233 of extrajudicially as made answerable
the Civil Code. required in the Civil must have been
Code, and the incurred after August
Judicial extrajudicial exemption is 3,1988.
constitution constitution effective from the
requires the is governed time it was
filing of a by Articles constituted and lasts
verified 240 to 242 as long as any of its Rule with respect to those already existing upon
petition of the Civil beneficiaries under effectivity of Family Code:
before the Code and Article 154 actually  Family residences which were not judicially or
courts and involves the resides therein. extrajudicially constituted as a family home prior to
the execution of  Moreover, the family the effectivity of the FC, but were existing
registration a public home should belong thereafter, are considered as family homes by
of the court instrument to the absolute
operation of law and are prospectively entitled to
order with which must community or
the Registry also be the benefits accorded to a family home under
conjugal partnership,
of Deeds of registered or if exclusively by the FC."
the area with the one spouse, its  In Modequillo v. Breva, the Court ruled that if the
where the Registry of constitution must residential house and lot was not constituted as a
property is Property have been with family home whether judicially or extrajudicially
located. consent of the other, under the Civil Code, the same became a family
and its value must home by operation of law only under Article 153 of
 the FC and is deemed constituted as such only
upon the effectivity of the FC on August 3,1988.
Reminders:
The law explicitly provides that occupancy of the
family home either by the owner thereof or by "any of
its beneficiaries" must be actual.
Actual occupancy, however, need not be by the
owner of the house specifically.
Rather, the property may be occupied by the
beneficiaries enumerated in Article 154 of the FC,
which may include the in-laws where the family home
is constituted jointly by the husband and wife.
But the law definitely excludes maids and overseers.
They are not the beneficiaries contemplated by the
Code
Where Constituted:
 The family home must be part of the properties of
the absolute community or the conjugal
partnership, or of the exclusive properties of either
spouse with the latter's consent, or on the property
of the unmarried head of the family.
 The family home must be established on the
properties of
o the absolute community, or
o the conjugal partnership, or
o the exclusive property of either spouse with
the consent of the other.
 It cannot be established on property held in co-
ownership with third persons. However, it can be
established partly on community property, or
conjugal property and partly on the exclusive
property of either spouse with the consent of the
latter.
 If constituted by an unmarried head of a family,
where there is no communal or conjugal property
existing, it can be constituted only on his or her
own property
 Note that Art 152 and 153 specifically extend the
scope of the Family home not just to the dwelling
structure in which the family resides but also to the
lot on which it stands.
Who May Constitute:
(i) Jointly by the husband and wife or
(ii) by an unmarried head of a family
For purposes of availing the benefits of a family home, a
person may constitute, however, only one family home.
Beneficiaries of Family Home:
Two sets of beneficiaries:
(i) The husband and wife, or an unmarried person
who is the head of a family, who constituted the
family home; and
(ii) Their parents, ascendants, descendants, brothers
and sisters, whether the relationship be legitimate
or illegitimate, who are living in the family home
 and who depend upon the head of the family for
legal support.
Note: However, for purposes of availing of the benefits of
a family home, a person may be the beneficiary of only
one family home.
Requisites:
In order for the relatives of the person who constituted
the family home to be considered a beneficiary of the
family home, three requisites must concur:
(i) They must be among the relationships
enumerated in Article 154 of the Family Code;
(ii) They live in the family home; and
(iii) They are dependent for legal support upon the
head of the family.
Case of Patricio v. Dario III
FACTS: "H" died intestate, survived by his wife ("W”) and
two sons, "A" and "B." One of the properties by the
deceased was a residential house which, upon
extrajudicial settlement of the estate of the deceased,
was transferred in the names of "W," "An and "B as co-
owners. "W" and "A" filed an action in court for the
partition and sale of the subject property when "B refused
to accede to an extrajudicial partition. "B is opposing the
partition of the property on the ground that it is a family
home, the partition of which is prohibited because his
minor son ("X"), who is the grandson of the deceased,
still resides in the premises. It is claimed that X is a
beneficiary of the family home. Is the contention of" B
meritorious?
ANSWER: No. While it is true that upon the death of the
person who constituted the family home, the same shall
continue and its partition is prohibited while there is a
minor beneficiary who lives therein, "X" is not, however, a
beneficiary of the family home concerned.
Three requisites must be satisfied before a person
can be considered a beneficiary of the family home:
(1) he or she must be among the relationships
enumerated in Article 154 of the Family Code;
(2) he or she must live in the family home; and
(3) he or she must be dependent for legal support from
the head of the family.
While "X satisfies the first two requisites, he does not,
however, satisfies the third requisite since he cannot
demand support from his paternal grandmother ("W")
because the liability for his legal support falls primarily on
his parents, especially his father "B," who is the head of
his immediate family.
Benefits of Family Home:
Rule:
It is exempt from execution, forced sale or attachment.
Conditions precedent for exemption:
It is duly constituted as such, as follows
 If constituted prior to If constituted after bar a judgment debtor shall not exceed the
effectivity of FC: effectivity of FC: from availing of the amount of P300,000 in
privilege. urban areas and
P200,000 in rural areas.
It must have been (i) There must be proof
constituted either judicially that the alleged family Exceptions to the rule: The foregoing exemption
or extrajudicially as home was constituted shall not apply
provided under Articles jointly by the husband and (i) For non-payment of taxes;
225, 229-231 and 233 of wife or by an unmarried (ii) For debts incurred prior to the constitution of family
the Civil Code. head of a family; home;
(iii) For debts secured by mortgages on the
Judicial constitution of (ii) It must be the house
premises before or after such constitution; and
family home requires where they and their
(iv) For debts due to laborer's, mechanics,
quires the filing of a family actually reside
verified petition before the and the lot on which it is architects, builders, materialmen and others who
courts and the registration situated; have rendered service or furnished material for the
of the court*s order with construction of the building.
the Registry of Deeds of (iii) The family home must
the area where the be part of the properties How and who may invoke protection:
property is located. of the absolute How:
community or the  It is not sufficient that the person claiming
Meanwhile, extrajudicial conjugal partnership, or exemption merely alleges that such property is a
constitution is governed by of the exclusive family home.
Articles 240 to 242 of the properties of either  Such claim for exemption should be set up and
Civil Code and involves spouse with the latters proved to the Sheriff before the sale of the
the execution of a public consent, or on the property at public auction. Failure to do so would
instrument which must property of the
estop the party from later claiming the exemption.
also be registered with the unmarried head of the
Registry of Property. family;

Failure to comply with (iv) At the time of its Personal privilege:

either one of these two constitution, the actual The right to exemption or forced sale under Article 153 of
modes of constitution will value of the family home the FC is a personal privilege granted to the judgment
debtor and as such, it must be claimed not by the sheriff,
but by the debtor himself before the sale of the property
at public auction.
Duration of protection:
The exemption provided as afore-stated is effective from
the time of constitution of the family home as such and
lasts so long as any of its beneficiaries actually resides
therein
Effect of increase in actual value of family home:
If by reason of involuntary improvement
 If the increase in value is by reason of an
involuntary improvement, like the conversion into a
residential area or the establishment of roads and
other facilities, the one establishing the family
home should not be punished by making his home
liable to creditors.
 Hence, the family home still enjoys protection from
execution, force sale or attachment.
If by reason of voluntary improvement:
 If the value of the family home exceeded the
maximum amount because of voluntary
improvements by the one establishing the family
home, then Article 160 will apply.
 To warrant, therefore, the execution sale of the
family home under Article 160, the following
facts are required to be established:
1. there was an increase in its actual value;
2. the increase resulted from voluntary
improvements on the property introduced,
by the persons constituting the family
home, its owners or any of its
beneficiaries; and
3. the increased actual value exceeded the
maximum allowed under Article 157.
Any subsequent improvement or enlargement of the
family home by the persons constituting it, its owners, or
any of its beneficiaries will still be exempt from execution,
forced sale or attachment provided the following
conditions obtain:
(a) the actual value of the property at the time of its
constitution has been determined to fall below the
statutory limit and
(b) (b) the improvement or enlargement does not
result in an increase in its value exceeding the
statutory limit.
Otherwise, the family home can be the subject of a sale,
and any amount above the statutory limit is applicable to
the obligations under Articles 155 and 160.
Effect of Death of Person Who Constituted the Family
Home:
Continuance of family home:
If there are beneficiaries who survive and are living in the
family home, it will continue for 10 years, unless at the
expiration of 10 years, there is still a minor beneficiary, in
which case the family home continues until that
beneficiary becomes of age.

Prohibition against partition:

 During the continuance of the family home, the heirs
cannot partition the same unless the court finds
compelling reasons therefore.
 Article 159 imposes the proscription against the
immediate partition of the family home regardless of
its ownership.
 This signifies that even if the family home has
passed by succession to the co-ownership of the
heirs, or has been willed to any one of them, this fact
alone cannot transform the family home into an
ordinary property, much less dispel the protection
cast upon it by the law.
 The rights of the individual co-owner or owner of the
family home cannot subjugate the rights granted
under Article 159 to the beneficiaries of the family
home.