ABSOLUTE COMMUNITY OF PROPERTY

Question: I am about to get married. My future wife and I are not really fans of
prenuptial agreements. Also, there really is not that much to include in the prenuptial
agreement. How will our properties be shared between us?—asked at EnRich™ Estate
Planning training program

Answer: Since you will be married after Aug. 3, 1988 when the Family Code of the
Philippines was promulgated and since you do not want to enter into any marriage
settlements, you and your future spouse will fall under the system of absolute
community.

There are other systems to consider, such as the conjugal partnership of gains, regime
of separation of property and regime of unions without marriage. But let us focus on
your case.

The law provides that property relations between spouses shall be governed in the
following order: 1) by marriage settlements executed before the marriage; 2) by
provisions of the Family Code, and 3) by local customs.

In your case, you will fall under the provisions of the Family Code. In the absence of
any marriage settlements, property relations between husband and wife fall under the
system of absolute community of property.

The system of absolute community of property begins at the precise moment of the
celebration of your marriage. If you are getting married in the afternoon of your
wedding day, you and your future spouse will fall under the system of absolute
community of property on that same afternoon.

Absolute community of property means that you and your future spouse will be co-
owners of all the properties that each of you will bring into your marriage as well as
of all those that you will acquire during your marriage.

So, even if you owned a sports car that you bought for the purpose of impressing the
ladies during your debonair days, your future spouse will be a co-owner of that sports
car as soon as you get married.

But there are exclusions.

Excluded from the system of absolute community of property are: 1) properties

acquired by you or your future spouse during your marriage through gratuitous title
including the fruits from and income thereof; 2) properties for each of your personal
and exclusive use, and 3) properties acquired by either of you before your marriage
where either of you have legitimate descendants under a former marriage, including
the fruits from and income thereof.

Gratuitous comes from the Latin word gratuitus, which means done without pay,
spontaneous and voluntary.
Under the Family Code, gratuitous title means donation or testate/intestate succession.
Testate succession is the transfer of property through a will. Intestate succession is the
transfer of property without a will.

So, if your parents donate property to you and you alone during your marriage, your
future spouse will not co-own that property as well as the fruits and income therefrom.

Please note, however, that with donation come donor’s taxes.

As to properties for each of your personal and exclusive use, your future spouse will
not own your toothbrush; so go ahead and buy the most expensive one. However,
jewelry will still be co-owned by you and your future spouse. You need not get used
to wearing jewelry yourself. Just know that you will co-own those with your future
spouse.

The third exclusion is intended to protect the rights of legitimate children and
descendants of your former marriage, if you have any. If we were to simply apply the
system of absolute community of property, the rights of the children and descendants
of your previous marriage, again if you have any, may be prejudiced.

As a final note, know that, unless either of you can prove that they are excluded, any
and all properties you and your future spouse will acquire during your marriage will
form part of your absolute community property. Your house, car, furniture, home
appliances, paintings and others will be co-owned by you and your future spouse
under the system of absolute community of property.