CHAPTER 4

PROPERTY
RELATIONS
 PROPERTY RELATIONS
It is used to distinguish a conjugal or community
property from an exclusive property.
Under Art. 74 of the New Family Code, the property
relationship between husband and wife shall be governed in
the following order :
1. By marriage settlements executed before the marriage.
2. By the provision of law.
3. By the local custom.
 LAW GOVERNING PROPERTY
RELATIONS
The provision of the New Family Code (E.O. No.209) shall govern
the property relations between husband and wife whose marriage
was celebrated on or before its effectivity (August 3, 1988).
Date of Marriage                                              Governing Law

• Before August 3, 1988               -                    Civil Code

• On or after August 3, 1988       -                     New Family Code

( EO No. 209
 TYPES OF PROPERTY
RELATIONS
1.ABSOLUTE COMMUNITY PROPERTY
The spouses become co-owners of all the
property they bring into the marriage and those
acquired by each or both of them during marriage,
save for the exceptions expressly enumerated by
law.
PROPERTY ACQUIRED BEFORE
MARRIAGE
Become part of the community property.

PROPERTY ACQUIRED DURING

MARRIAGE
Presumed to belong to the community, unless it
can be proven to be exclusive property.
COMMUNITY PROPERTY UNDER ACoP
The following are considered community property when acquired during
marriage unless proven otherwise:

• FAMILY HOME
• PROCEEDS OF LIFE INSURANCE
• CLAIM AGAINST INSOLVENT PERSON IS EITHER
EXCLUSIVE OR CONJUGAL PROPERTY.
 EXCLUSIVE PROPERTY UNDER
ACoP

• ART. 92 (1) OF THE NEW FAMILY CODE

• ART. 92(2) OF TYE NEW FAMILY CODE
• 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.
 2. CONJUGAL PARTNERSHIP OF
GAINS

The spouses place in a common fund place

the fruits of their separate property, and the
income from their work or industry and the
same is to be divided between them equally,
generally, upon the dissolution of the marriage
or the partnership.
 EXCLUSIVE PROPERTY UNDER
CPG
• ONE WHICH IS BROUGHT AS HIS/HER OWN.
• ACQUIRES DURING THE MARRIAGE BY GRATUITOUS
TITLE.
• ACQUIRED BY RIGHT OF REDEMPTION/BY EXCHANGE
WITH PROPERTY BELONGING TO ONLY ONE OF THE
SPOUSES.
• PURCHASED WITH THE EXCLUSIVE MONEY OF THE
WIFE/HUSBAND.
 CONJUGAL PROPERTY CPG
• Acquired by onerous title during the marriage at the expense of the
common fund.
• Obtained by labour, industry or work or profession of either or both of the
spouses.
• The fruits received during the marriage coming from the common property.
• The share in the hidden treasure discovered during marriage.
• Property acquired by occupation.
• Improvements on the separate property of the spouses at the expense of
the partnership.
 CONJUGAL DEDUCTIONS
• The support of the spouses, their common children, and
legitimate children of either spouse.
• All debts and obligations contracted during marriage by the
designated administrator.
• Debts and obligations contracted by either spouse without
the consent of the other to the extent that the family may
have benefited.
• All the taxes, liens, charges and expenses upon conjugal
property.
• All taxes and expenses for mere preservation made during
• Expenses to enable either spouse to complete activity for
self improvement.
• Debts before marriage of either spouse in so far that
they have redounded to the benefit of the family.
• The value of what is donated by both spouses in favour
of their common legitimate children for the activity for
self improvement.
• Expenses of litigation between spouses, unless the suit is
found to be groundless.
 Obligations contracted during marriage to the extent that the family
may have benefited - CONJUGAL DEDUCTIONS
 Obligations contracted BEFORE marriage are presumed to be
EXCLUSIVE deductions unless proven that the family benefited from it.
 Share of the surviving spouse (1/2 of the net conjugal property), family
home, medical expenses and standard deduction are deductions from
the net estate (total of net conjugal estate and net exclusive estate) to
arrive at the net taxable estate
 Medical expenses: NEITHER CONJUGAL OR EXCLUSIVE DEDUCTIONS
 Other deductions are either conjugal or exclusive deductions
depending on whether the property is related to conjugal or exclusive
property.
 3. COMPLETE SEPARATION OF
PROPERTY

Under the system of complete separation

of properties between the husband and wife,
each spouse shall own, dispose of, possess,
administer and enjoy his or her own separate
estate, without need of the consent of the
other.
 4. PROPERTY REGIME OF UNIONS
WITHOUT MARRIAGE
CAPACITATED TO MARRY
THE FOLLOWING RULES SHALL APPLY:

1. Wages and salaries shall be owned by them in equal shares.

2. Property acquired by both of them through their work shall be
governed by the rules on co-ownership.
3. Neither party can encumber or dispose by act inter-vivos his share
in the property acquired during cohabitation and owned in
common , without the consent of the other, until after the
termination of their cohabitation.
 INCAPACITATED TO MARRY

1. Only the property acquired by both of them through

their actual joint contribution of money property or
industry shall be owned in proportion to their
respective contributions.
2. The share of any part who is married to another shall
accrue to the absolute community or conjugal
partnership, as the case may be, if existing under the
valid marriage.