The lot and the building shall be presented in the gross estate as follows:

Conjugal properties:
Building ₱ 1,200,000
Exclusive properties:
Lot 3,000,000

Charges upon and obligations of the conjugal partnership

The conjugal partnership shall be liable for:
1. The support of the spouses, their common children, and legitimate children of either
spouse; however, the support of illegitimate children shall be governed by the provisions
of the Family Code on support;
2. All debts and obligations contracted during the marriage by the designated
administrator spouse for the benefit of the community, or by both spouses, or by one
with the consent of the other;
3. Debts and obligations contracted by either spouse without the consent of the other to
the extent that the family may have been benefited;
4. All taxes, liens, charges and expenses, including major or minor repairs, upon the
conjugal property;
5. All taxes and expenses for mere preservation made during the marriage upon the
separate property of either spouses;
6. Expenses to enable either spouse to commence or complete a professional,
vocational course, or other activity for self-improvement;
7. Ante-nuptial debts of either spouse insofar as they have redounded to the benefit of
the family
8. The value of what is donated or promised by: both spouse in favor of their common
legitimate children for the exclusive purpose of commencing or completing a
professional, vocational course of either activity: for self-improvement; and self
9. Expenses of litigation between the spouses unless the suit is found to be groundless.

Conjugal and community property, distinguished

In the determination of whether a property is conjugal/community or exclusive
property, the following rules shall serve as useful guides:
 a. In the absence of an ante-nuptial agreement as to what system or property
relationship shall govern.
If the marriage was celebrated before August 3, 1988, the spouses are
governed by conjugal partnership of gains; those marriages celebrated on or
after that date are governed by the regime of absolute community of property.

b. Acquisition of property by donation or inheritance.

a. Before the marriage. - In conjugal partnership of gains, the property shall
remain as exclusive property of the spouse, but the fruits are conjugal; whereas,
in. absolute community of property regime, it shall become community property
of the spouses immediately after the celebration of the marriage, including its
fruits.
b. During the marriage. - In conjugal partnership, the property is an exclusive
property of the spouse, but the fruits shall be conjugal; whereas in community
property regime, it shall be an exclusive property, including its fruits, unless the
donor, testator, or grantor shall expressly provide that it shall belong to the
community property of the spouses.
c. Properties acquired before marriage.
In conjugal partnership of gains, the property shall remain as an exclusive
property during the marriage, but the fruits shall be conjugal; whereas, under
absolute community of property, it shall belong to the community property of the
spouses, including the fruits thereof, if any.
d. Properties acquired during marriage.
In absolute community of property and conjugal partnership of gains, the
property, including its fruits, shall be conjugal or community as the case maybe,
unless it has been acquired by redemption, barter or exchange with property
belonging to only one of the spouses.
This rule does not apply on properties acquired during the marriage by
gratuitous title because they shall be governed by Rule No. 2 above.

Table 1 below shows the classifications of properties which are acquired by

gratuitous tile during marriage under conjugal partnership and absolute community
property regime.
Table 1

Property acquired Property acquired

exclusive exclusive
fruits fruits

conjugal exclusive

Conjugal partnership Community regime

Table 2 summarizes the classification of the properties under conjugal partnership of

gains or absolute community of property regime.

Table 2
A. No agreement on property relation.

Date of marriage Regime

Before August 3, 1988 Conjugal partnership of gains

On or after August 3, 1988 Absolute community of property

B. Acquisition by gratuitous title (Donation/Inheritance)

Regime Before marriage During marriage

1. Conjugal partnership

a. Principal Exclusive Exclusive

b. Fruits Conjugal Conjugal

2. Absolute community

a. Principal Community Community

b. Fruits Community Community

C. Properties brought into/acquired during the marriage

Regime Before marriage During marriage

1. Conjugal partnership

c. Principal property Exclusive Conjugal

d. Fruits Conjugal Conjugal

2. Absolute community

c. Principal property Community Community

d. Fruits Community Community

Dissolution of absolute community and conjugal partnership regime

The absolute community terminates:
(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
of the New Family Code (Art. 99, id.)

Regime of complete separation of property

The spouses shall be governed by complete separation of property if the future
spouses agree in the marriage settlements that their property relations during the
marriage shall be governed by the regime of separation of property (Art. 143, id)
To each spouse shall belong all earnings from Nis or her profession, business or
industry and all fruits, natural, industrial or civil, due or received during the marriage from
his or her separate property (Art. 144, id.).
Both spouses shall bear the family expenses in proportion to their income, or,
insufficiency or default thereof, to the current market value of their separate properties.
The liability of the spouses to creditors for family e expenses shall, however, be solidary
(Art. 146, id.).
Illustration 5-8
 Sagisag. Filipino, married in 1999 to Nene. died in 2008:

Savings deposit with PNB (earned by Sagisag during marriage) 125,000

Riceland, inherited from his father who died in 2003 300,000
Jewelry inherited by Nene from her mother who died in 2007 250,000
Coconut land inherited from his mother who died in 1999 225,000
House and lot (acquired in 2003) acquired through the
labor of Nene 870.000
Car (acquired in 2006) purchased from the fruits of his separate
property 340,000
Cash brought into the marriage by Nene 180,000
Cash brought into the marriage by Sagisag 200,000

REQUIRED: Compute the gross estate of Sagisag if the marriage was governed by
complete separation of all present and future properties.

Savings deposit earned during marriage 125,000

Riceland inherited during marriage 300,000
Coconut land inherited before marriage 225,000
Car acquired during marriage 340,000
Cash brought into the marriage 200.000
Gross estate 1,190,000

Properties acquired by the surviving spouse (Nene) either before or during the marriage
shall form part of her exclusive property. Hence, it shall not be included in the gross
estate.

Property regime of unions without marriage

When a man and a woman who are capacitated to marry each other, live exclusively
with each other as husband and wife without the benefit of marriage or under a void
marriage, their wages and salaries shall be owned by them in equal shares and the
property acquired by both of them through their work or industry shall be governed by
the rules on co-ownership.
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 (Art. 147, id.).
Neither party can encumber or dispose by act inter vivos his or her share in the
property during cohabitation and owned in common, without the consent of the other,
until after the termination of their cohabitation.

Illustration 5-9
Esteban, single and capacitated to marry, lived with Amparing without the benefit
of marriage, died. The properties of the couple consisted of the following:

Eamings from the salary of Esteban and Amparing P 250,000

Interest on the earmings deposited in a bank 3,000
Car 550,000
House and lot 2,000,000
Jewelries inherited by Amparing from her mother 300,000
Farmland owned by Esteban 1,200,0000
Income of the farmland 300,000
REQUIRED: Compute the gross estate on the estate of Esteban.

Earnings from the salary (250,000/2) 125,000

Interest (3,000/2) 1,500
Car (550,000/2) 275,000
House and lot (2,000,000/2) 1,000,000
Farmland owned by Esteban 1,200,000
Income of the farmland (300,000/2) 150,000
Gross estate 2,751,500

Property regime in cohabitations of spouses who are incapacitated to marry each

other
When common-law spouses (1) suffer from legal impediments to marry or (2) when they
do not live exclusively with each other as husband and wife, only the property acquired
by both of them through their actual joint contribution of money property or industry shall
be owned in common and in proportion to their respective contributions.

In the absence of proof to the contrary, their contributions and corresponding shares are
prima facie presumed to be equal
The same rule and presumption shal apply to joint deposits of money and evidence of
credit.
The share of any party who is married to another shall accrue to the absolute cammunity
or conjugal partnership, as the case may be, if existing únder the valid marriage.

Illustration 5-10

Philip, legally maried to Karina, died, had the folowing data:

Conjugal properties with Karina:

Earnings from salary of Philip P 120,000
Eamings from exercise of profession of Karina 250,000

Joint property with mistress Lina:

Business interest of couple (share of Philip is 70%) 800,000
income in business 140,000
House and lot inherited by Lina from her parents 1,500,000
Time deposit (contribution of each is unknown) 200,000
Appliances (60% contributed by Philip) 150,000
Exclusive properties:
Philip 500,000
Karina 400,000
REQUIRED: Compute for the gross estate of Philip.

Conjugal properties:
Earnings from salary of Philip 120,000
Earnings from profession of Karind 250,000
nare in business interest (800.000 x 70%) 560,000
hare in business income (140,.000 x 70%) 98,000
Time deposit (200,000 x 2) 100,000
Appliances (150,000 x 60%) 90,000 1,218,000
Exclusive propertyY 500,000
Gross estate 1,718,000

EXERCISE 5-1. TRUE OR FALSE QUESTIONS

1. Under the systemn of absołute community of property, all properties acquired before
the marriage by the husband who has a child by a former marriage, are classified as
exclusive property of the husband.
2. Under the system of absolute community of property, a propery acquired before the
marriage by the wife who has a legitimate grandchild by a former marriage, is classified
as a community property of the spouses.
3. Under the system of conjugal partnership of gains, an award received by one spouse
as finder of a hidden treaşure shall belong to the conjugal partnership of the spouses.
4. Under the system of conjugal partnership of gains, a property purchased with the
exclusive money of the husband is classified as a capital property.
5. Under the system of conjugal partnership of gains, obligations contracted by the wife
during the marriage without the consent of the husband is chargeable against the
conjugal partnership if such obligation has redounded to the benefit of the family.
6. The classification of properties in the gross estate into conjugal/community and
exclusive is applied even if there was an extrajudicial separation of property between the
spouses.
7. The regime of conjugal partnership is automatically terminated upon annulment of
marriage; thus, a decedent whose marriage has been declared void by judicial
authorities shall have no conjugal property in his gross estate.
8. Under the regime of complete separation of property, each spouse shall be entitled to
his respective earnings during the marriage and they shall have a joint liability to
creditors for family expenses.
9. When a dirty old man cohabits with a sixteen-year-old 4th year high school student, all
the properties acquired during the period of cohabitation shall be owned by them in
equal shares.
10. When a man and a woman who are capacitated to marry each other live exclusively
with each other as husband and wife without the benefit of marriage, all properties
acquired by them during that period shall be owned by them in equal shares even if the
man did not participate in the acquisition of property because his efforts consisted only in
the care and maintenance of the family and of the household,
11. For marriages celebrated on or before August 3, 1988, the property relationship
between the husband and the wife, in the absence of an ante-nuptial agreement
between them, is the system of absolute community of property.
12. For marriages celebrated on or after August 3, 1988, the property relationship
between the husband and the wife, in the absence of an ante-nuptial agreement
between them, is the system of the conjugal partnership of gains.
13. Under the system of absolute community of property regime, all properties acquired
before the marriage by gratuitous title are community property of the spouses.
14. Under the regime of absolute community of property, all properties acquired during
the marriage by donation or inheritance are classified as exclusive property of the
donee-spouse.
15. Under the regime of absolute community of property, all fruits or income of an
exclusive property of one spouse are classified as community property.
16. Under the system of conjugal partnership of gains and absolute community of
property, all properties acquired during the marriage by inheritance or gift are exclusive
properties.
17. Under the system of conjugal partnership of gains and absolute community of
property, all properties acquired before the marriage are exclusive properties under both
systems.
18. Under the system of conjugal partnership of gains, the fruits ór income of properties
acquired during the marriage by gratuitous title are conjugal properties of the spouses.
19. Under the system of conjugal partnership of gains, the fruits or income of properties
acquired by the spouses during the marriage are conjugal properties.
20. Under the system of absolute community of property, jewelries inherited during the
marriage are classified as community property of the spouses.
EXERCISE 5-2. MULTIPLE CHOICE QUESTIONS
1. When a person dies and during the marriage, the property relationship between
husband and wife was that of conjugal parthership of gains, the gross estate of the
decedent would include
a. His exclusive property only.
b. His exclusive properties and one-half of the conjugal properties.
c. All of the properties of the husband and the wife.
d. His exclusive properties and all conjugal properties

2. The following are exclusive property of each spouse. Which one is not?
a. That which each acquires during the marriage by lucrative title;
b. That which is purchased with the exclusive money of either spouse;
c. That which is acquired by exchange with other property belonging to the spouses;
d. That which is brought to the marriage as his or her own.

3. Which of the following properties bełongs to the community property of the spouses
a. Property inherited by the wife during marriage.
b. Property inherited by the husband before marriage.
c. Property for exclusive use of the wife.
d. Income of the property in letter (a).

4. Which of the following distinguishes conjugal property from community property

a. Properties inherited during marriage.
b. Those acquired through occupation during marriage.
c. Fruits of exclusive property.
d. Income earned by each spouse during marriage.

5. Which of the following is a conjugal property?

a. Properties acquired during the marriage.
b. Properties acquired before the marriage.
c. Properties acquired after the marriage.
d. Properties acquired by donation during the marriage.

6. 1st statement: For marriages celebrated before August 3, 1988, the property
relationship between husband and wife, in the absence of a written agreement between
them, is the system af absolute cammunity of property.
2nd statement: There may be a property relationship of conjugal partnership of gains
even if the marriage was celebrated on or after August 3, 1988.
a. Only the first statement is true.
b. Only the second statement is true.
c. Both statements are true.
d. Both statements are false.

Items 7 to 10:
Aldo died leaving the following properties:
a. Real property in Baguio City, brought into marriage P 300,000
b. Income of real property in Baguio 60,000
c. Real property in Cebu City, brought into marriage by wife 240,000
d. Income of real property in Cebu City 25,000
e. House in Pili, Camarines Sur, acquired by Aldo during marriage 375,000
f. Income of house in Pili 50,000
g. Real property in lloilo City, earned by wife during marriage 225,000
h. Income of real property in Iloilo City 80,000
i. Tangible personal properties in Manila, inherited by Aldo during marriage 500,000
j. Income of properties in Manila 175,000
k. Intangibie personal properties in Singapore, inherited by wife during marriage 430,000
l. Income of intangibles in Singapore 85,000
m. Tangible personal property in Dagupan City 20,000
inherited by Aldo before marriage
n. Income of property in Dagupan City 10,000
o. Intangible personal property in Canada 350,000
inherited by wife before marriage
p. Income of personal property in Canada 85,000

7. Under the conjugal partnership of gains, the total conjugal properties of the spouses
is:
a. P 1,170,000 c. P 1,990,000
b. 1,820,000 d. 2,495,000

8. Under conjugal partnership of gains, the gross estate of Aldo is

a. P1,170,000 c. P1,990,000
b. 2,495,000 d. 1,820,000

9. Under absolute community of property regime, the total community property of the
spouses is:
a. P1,820,000 c. P2,495,000
b. 1,990,000 d. 1,170,000

10. Under absolute community of property regime, the gross estate of Aldo is:
a. P1,170,000 c. P1,990,000
b. 2,495,000 d. 1,820,000

EXERCISE 5-3. DISCUSSION QUESTIONS/PROBLEMS

1. No marriage settlement. What system of property relationship governs the spouses
in the absence of a marriage settlement or if the settlement they have agreed upon is
void?
2. Classification of property. Remelisa, married to Unico, died leaving the following
properties:
Real property in Naga City, brought into marriage by P300,000
Remelisa
Income of real property in Naga City 25,000
Real property in Cauayan City, brought into marriage by 420,000
Unico
Income of real property in Cauayan City 52,000
Real property in Davao City, earned by Remelisa during
marriage 760,000
Income of real property in Davao City 23,000
Real property in Cebu City, acquired by Unico during 280,000
marriage
Income of real property in Cebu City 90,000
Tangible personal properties in Antipolo City, inherited by
Remelisa during marriage 46,000
Income of properties in Antipolo City 4,500
Intangible personal properties in Singapore, inherited by
Unico during marriage 850,000
Income of intangible properties in Singapore 55,000
Tangible personal properties in Dapitan City, inherited by
Remelisa before marriage 32,000
Income of property in Dapitan City 1,500