PERSONS & FAMILY RELATIONS

(Lecture Notes No. 5)

PROPERTY RELATIONS BETWEEN THE

HUSBAND AND THE WIFE

Governed by:

1) Marriage settlements executed prior to the marriage.

2) Provisions of the Family Code
3) Local customs when spouses repudiate the absolute community
of property – when parties stipulate in their marriage
settlement that local custom shall apply or that the absolute
community of property regime shall not govern but fail to
stipulate what property regime will be applied.

Commencement:

It commences at the precise moment of the celebration of marriage.

(Arts. 88 and 107 of the Family Code).

MARRIAGE SETTLEMENT

It is a contract entered into by the future spouses fixing the

matrimonial property regime that should govern during the existence of the
marriage.

In the absence of marriage settlement or when the marriage

settlement and/or regime agreed upon is void, the absolute community
of property shall govern if the marriage is celebrated during the
effectivity of the Family Code of the Philippines. (Art. 75)

In the absence of a contrary stipulation in a marriage settlement, the

property relations of the spouses shall be governed by Philippine laws,
regardless of the place of the celebration of the marriage and their
residence. This rule shall not apply: (a) where both spouses are aliens;
(b) with respect to the extrinsic validity of contracts affecting property not
situated in the Philippines and executed in the country where the property
is located; and (c) with respect to the extrinsic validity of contracts
entered into in the Philippines but affecting property situated in a foreign
country whose laws require different formalities for its extrinsic validity.
(Art. 80, FC)

1
 Requisites:

1) Made before the celebration of marriage.

2) In writing, including modifications if any. Oral marriage
settlement is void and cannot be ratified by any claim of partial
execution or absence of objection.
3) Signed by the parties.
4) Will not prejudice third persons unless registered in the civil
registry and proper registries of property.
5) Shall fix the terms and conditions of their property relations.
6) Additional signatories/parties – where one or both parties is/are
under civil interdiction and/or disabled, it is indispensable for
the guardian appointed by the court to be made a party to the
marriage settlement.

 Efficacy of marriage settlement (Art. 81):

o General rule: The consideration is the marriage itself. If the

marriage does not take place, the marriage settlement is
generally void.

o Exception: Stipulations in the marriage settlement that do not

depend upon the celebration of the marriage shall be valid.

 Modification in marriage settlement:

o General Rule: Must be made before the marriage, in writing

and signed by the parties.

o Exceptions: Modifications made through judicial decree during

the marriage:

1) In case of revival of former property regime between

reconciling spouses after decree of legal separation has been
issued (Arts. 66, 67).

2) When abandoned spouse files petition for judicial separation

of property under Art. 128.

3) When a spouse files petition for judicial separation of

property for sufficient cause under Art. 135.

4) Petition for voluntary dissolution of property regime under

Art. 136.

2
 DONATION BY REASON OF MARRIAGE

Donations propter nuptias are made by one spouse in favor of the

other or by a stranger or third party. It is without onerous consideration,
the marriage being merely the occasion or motive for the donation, not its
cause. Being liberalities, they remain subject to reduction for
inofficiousness upon the donor’s death, should they infringe the legitime of
a forced heir. (Art. 82)

 Requisites:

1) Made before celebration of marriage.

2) In consideration of marriage.
3) In favor of one or both of the future spouses.

 Rules in case of donation by would-be spouses to each other:

1) The must be a valid marriage settlement stipulating a property

regime other than absolute community of property.

2) Donation in the marriage settlement should not be more than one-

fifth (1/5) of present property.

o Any excess shall be considered void and the donation will be

reduced to 1/5. However, if their property regime is absolute
community of property, no reduction shall be made.

o Further, this limitation does not apply if the donation propter

nuptias is not included in the marriage settlement but is
contained in a separate instrument.

3) Accepted by the would-be spouse.

4) Complies with the requisites on Donations as provided under the

Civil Code (Title II of Book II of Civil Code).

o If what is donated is a personal property, the value of which

exceeds P5,000.00, the donation and acceptance must both be
in writing, otherwise, the donation is void (Art. 748, New Civil
Code in relation to Art. 83, FC).

o If what is donated is a real property, the donation and the

acceptance must both be in public instrument, otherwise, the
donation is void. (Art. 749, NCC in relation to Art. 83, FC)

3
 Notes:

o Donation propter nuptias (DPN) of future property is allowed by

way of exception to Art. 751 of NCC which provides that
donations cannot comprehend future property. It is governed
by the law on testamentary succession both as to intrinsic and
extrinsic validity. However, said DPN can only be revoked by
the donor only on the basis of Art. 86 of the Family Code.

o Donation propter nuptias (DPN) of encumbered property is

valid because the donor is still the owner, even if it is
encumbered. If mortgage is foreclosed and sold at a lesser
price, donee is not liable for deficiency but if sold for more,
donee is entitled to excess. (Art. 85)

 Rule on Donation between Spouses During Marriage:

- General rule: VOID, either direct or indirect donation.

- Exceptions:

a. Moderate gifts on occasions of family celebration. Moderate

gifts will depend on a case-to-case basis especially
considering the financial capacity of the donor.

b. Donations mortis causa

- Notes:

o This rule also applies to persons living together as husband

and wife without a valid marriage. (Art. 87)

o The prohibition does not include a spouse being the beneficiary

of an insurance contract over the life of the other spouse.

 Grounds for Revocation (Art. 86, FC):

A donation by reason of marriage may be revoked by the

donor in the following cases:

1) Marriage not celebrated or declared void ab initio except

those made in the marriage settlement that do not depend

4
 on the celebration of marriage. If made by a stranger,
action may be brought under ordinary rules on prescription:
if in writing, brought within 10 years and if oral, within 6
years.

2) Marriage without parental consent.

3) Marriage is annulled and donee is in bad faith.

4) Upon legal separation, the donee being the guilty spouse.

5) If it is with a resolutory condition and the condition is

complied with.

6) Donee commits acts of ingratitude as specified by Art. 765 of

NCC.

a) If donee commit some offense against the person, the

honor or the property of the donor, or of his wife or
children under his parental authority.

b) If the donee imputes to the donor any criminal offense,

or any act involving moral turpitude, even though he
should prove it, unless the crime or the act has been
committed against the donee himself, his wife or children
under his authority.

c) If he unduly refuses him support when the donee is

legally or morally bound to give support to the donor.

SYSTEMS OF PROPERTY REGIMES

ABSOLUTE COMMUNITY OF PROPERTY (ACP):

The property regime of the spouses in the absence of a marriage

settlement or when the marriage settlement is void. It commences at the
precise moment the marriage is celebrated; any stipulation for the
commencement thereof at any time is void. (Art. 88)

 General rule: Community property shall consist of all property owned

by the spouses at the of the marriage or acquired thereafter (Art.
91).

 Exceptions:

5
 1) Property, including fruits and income thereof, acquired before the
marriage by either spouse who has legitimate descendants by a
former marriage.

2) Property for personal and exclusive use except jewelry.

3) Property acquired during the marriage by gratuitous title, including

fruits and income thereof, except when the donor, testator or
grantor expressly provides otherwise. (Art. 92)

 Presumption:

Property acquired during the marriage is presumed to belong to

the community, unless otherwise proven.

No waiver of rights allowed during the marriage except in case

of judicial separation of property. The waiver must be in a public
instrument and recorded in the office of the local civil registrar where
the marriage contract was recorded as well as in the proper registry
of property. (Arts. 89 and 77). The same rule applies under the
property regime of conjugal partnership of gains (CPG).*

 Charges Upon and Obligation of the Community Property

(Art. 94):

The absolute community of property shall be liable for:

a) Support of the spouses, their common children and

legitimate children of either spouse. Support of illegitimate
children shall be chargeable to the exclusive property of the
illegitimate parent;

b) 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 spouse with the
consent of the other;

c) Debts and obligations contracted by either spouse without

the consent of the other to the extent that the family may
have benefited;

d) All taxes, liens, charges and expenses, including major and

minor repairs, upon the community property;

6
 e) All taxes and expenses for mere preservation made during
marriage upon the separate property of either spouse used
by the family;

f) Expenses to enable either spouse to commence or complete

a professional or vocational course, or other activity for self-
improvement;

g) Ante-nuptial debts of either spouse insofar as they have

redounded to the benefit of the family;

h) The value of what is donated or promised by both spouses

in favor of their common legitimate children for the
exclusive purpose of commencing or completing a
professional or vocational course or other activity for self-
improvement;

i) Ante-nuptial debts of either spouse other than those falling

under paragraph (g), the support of illegitimate children of
either spouse and liabilities incurred by either spouse by
reason of a crime or quasi-delict, in case of absence or
insufficiency of the exclusive property of the debtor-spouse,
the payment of which shall be considered as advances to be
deducted from the share of the debtor-spouse upon
liquidation of the community; and

j) Expenses of litigation between spouses unless the suit is

found to be groundless.

Note: If the community property is insufficient to cover the

foregoing liabilities, except those falling under paragraph (i),
the spouses shall be solidarily liable for the unpaid balance with
their separate property.

 Rule on Games of Chance:

- Loss: Shall be borne by the loser-spouse and shall not be

charged to the community property.

- Winnings: Shall form part of the community property. (Art. 95)

- Exception: if said ticket was gratuitously given by a friend to a

spouse, only upon express provision of the donor will it be
considered as part of the community property.

- Note: The same rule applies to CPG.*

7
 Administration and Disposition of the Community Property:

- General Rule: Administration shall belong to both spouses jointly.

- Exceptions:

1) In case of disagreement, husband’s decision shall prevail,

subject to recourse to the court by the wife for proper
remedy within 5 years from date of contract implementing
such decision.

2) In case one spouse is incapacitated or unable to participate

in the administration of the common properties, the other
spouse may assume sole powers of administration (Art. 96).

o These powers do NOT include:

a. Disposition
b. Encumbrance

o Written consent of the other spouse or authority of court

is required, otherwise disposition or encumbrance is
VOID.

o The same rule applies to CPG.*

- Note:

1) The husband and wife are the joint administrators of their

properties forming part of the absolute community of
property. The sale by the husband of the property
belonging to the conjugal partnership or of the absolute
community without the consent of the wife or authority of
the court is void. (Abalos vs. Macatangay, G.R. No. 155043,
September 30, 2004.)

The transaction, however, shall be construed as a

continuing offer on the part of the consenting spouse and
the third person, until acceptance by the other spouse or
authorization by the court before the offer is withdrawn by
either or both offerors. (Art. 95)

2) Either spouse may dispose by will of his or her interest in the

ACP. (Art. 97)

8
 3) Neither spouse may donate any community property without
the consent of the other but either may, without the other’s
consent, make moderate donations for charity or on
occasions of family rejoicing or family distress. (Art. 98) The
same rule applies to CPG.*

 Effect of Separation in Fact:

- General Rule: The separation in fact between the husband and

wife shall not affect the regime of absolute community of
property.

- Exceptions:

1) The spouse who leaves the conjugal home or refuses to live

therein without just cause shall not have the right to be
supported.

2) 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.

3) In the absence of sufficient community property, the separate

property of both spouses shall be solidarily liable for the
support of the family. The spouse present shall, upon proper
petition in a summary proceeding, be given judicial authority
to administer or encumber any specific separate property of
the other spouse and use the fruits or proceeds thereof to
satisfy the latter’s share. (Art. 100) The same rule applies to
CPG.*

 Grounds for Termination of Absolute Community of Property:

1) Decree of legal separation.

-
2) Annulment or declaration of nullity of marriage.
3) Death of either spouse.

o Surviving spouse shall liquidate the ACP within one (1) year
from death of the deceased spouse if no judicial settlement
is instituted. Failure to do so upon the lapse of one (1) year
makes any disposition or encumbrance of ACP void.

o Mandatory regime of complete separation of property

governs subsequent marriage of surviving spouse if he/she

9
 fails to comply with liquidation of ACP of previous marriage.
(Art. 103)

4) Judicial separation of property.

Note: The same rule applies to CPG.*

 Liquidation of the Absolute Community Assets and Liabilities

(Art. 102):

Upon dissolution of the absolute community regime, the

following procedure shall apply:

1. Inventory, listing separately all the properties of the

absolute community and the exclusive properties of each
spouse.

2. Payment of debts and obligations of the absolute

community. In case of insufficiency, the spouses shall be
solidarily liable for the unpaid balance with their separate
properties.

3. Properties left after payment of the debts and obligations

shall constitute the net assets, which shall be divided
equally between the husband and wife, unless a different
proportion or division was agreed upon in the marriage
settlements, or unless there has been a voluntary waiver of
such share.

4. The presumptive legitime of the common children shall be

delivered upon partition, in accordance with Art. 51.

5. The conjugal dwelling and the lot shall be adjudicated to the

spouse with whom the majority of the common children
choose to remain unless the court has decided otherwise.
In case there is no such majority, the court shall decide,
taking into consideration the best interests of said children.

CONJUGAL PARTNERSHIP OF GAINS (CPG):

It is that special type of partnership which is formed by the

husband and wife whereby they place in a common fund the
proceeds, products, and income of their separate properties and
those acquired by either or both spouses through their efforts or by

10
 chance, the same to be divided equally (as a general rule) upon
dissolution of the marriage or the partnership. (Art. 106).

The conjugal partnership shall be governed by the rules on the

contract of partnership in all that is not in conflict with what is
expressly determined under the Family Code or by the spouses in
their marriage settlements (Art. 108, FC). Hence, the provisions of
the Civil Code on partnership apply to this regime in a suppletory
manner.

The conjugal partnership of gains governs if the marriage is

celebrated under the Civil Code or prior to August 3, 1988, if:

a. it was provided for in the marriage settlement between the

future spouses; or

b. if there was no marriage settlement at the time of the

celebration of the marriage, or if the marriage settlement
was void.

 Exclusive Property of Each Spouse:

The following shall be the exclusive property of each spouse:

1) That which is bought to the marriage as his/her own, whether

with or without legitimate descendants.

2) Acquired during the marriage by gratuitous title.

3) Acquired by right of redemption, barter or exchange with property

belonging to only one of the spouses.

4) Purchased with exclusive money of either spouse. (Art. 109, FC)

5) Principal amount of credit belonging to one spouse payable in

partial payments/installments which will be fully paid during the
marriage (Art. 119)

Notes:

a) The spouses retain the ownership, possession,

administration and enjoyment of their exclusive
properties. Either spouse may, during the marriage
transfer the administration of his or her exclusive
property to the other by means of a public instrument,

11
 which shall be recorded in the registry of property of the
place where the property is located. (Art. 110).

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.
(Art. 112)

b) Either spouse may mortgage, encumber, alienate or

otherwise dispose of his or her exclusive property.

c) 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 own exclusive property,
and in the absence of designation, share and share alike,
without prejudice to the right of accretion when proper.
(Art. 113, FC)

d) Retirement benefits, pensions, annuities, gratuities,

usufructs and similar benefits shall be governed by the
rules on gratuitous or onerous acquisitions as may be
proper in each case. (Art. 115, FC)

 Presumption:

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 to belong to the
community, unless otherwise proven. (Art. 116, FC)

 Conjugal Partnership Properties (Art. 117):

The following are conjugal partnership properties:

1) Those acquired by onerous title during the marriage at the

expense of the common fund, whether the acquisition is for
the partnership, or for only one of the spouses. However,
for property acquired during the marriage through the
exercise of right of redemption, even if the redemption price
comes from conjugal funds, the property of the spouse so
acquired shall be the separate property of the spouse to
whom the right of redemption pertains. (Art. 109, FC)

12
 2) Those obtained from the labor, industry, work or profession
of either or both of the spouses.

3) The fruits from conjugal properties and net fruits from

separate properties. Net fruits refer to the remainder of the
fruits after deducting the amount necessary to cover the
expenses of administration of said exclusive property.

4) The share in the hidden treasures and those acquired

through fishing and hunting.

5) Livestock existing upon the dissolution of the partnership in

excess of the number of each kind brought to the marriage
by either spouse.

6) Those that are acquired by chance, such as winnings from

gambling or betting. However, losses shall be borne
exclusively by the loser-spouse (Art. 123, FC)

 Property Bought on Installment (Art. 118):

Property bought on installments paid partly from exclusive

funds of the spouses and partly from conjugal funds:

1) If full ownership was vested before the marriage, it shall

belong to the buyer-spouse.

2) If full ownership was vested during the marriage, it shall

belong to the conjugal partnership.

 Credit Belonging to One Spouse (Art. 119)

Whenever an amount or credit payable within a period of time

belongs to one of the spouses, the sums that may be collected during
the marriage in partial payments or by installments on the principal
shall be the exclusive property of the spouse. However, interests
falling due during the marriage on the principal shall belong to the
conjugal partnerships.

 Charges Upon and Obligations of the Conjugal Partnership of

Gains (Art. 121):

The conjugal partnership shall be liable for:

13
a) Support of the spouses, their common children and
legitimate children of either spouse. Support of illegitimate
children shall be chargeable to the exclusive property of the
illegitimate parent;

b) 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 spouse with the
consent of the other;

c) Debts and obligations contracted by either spouse without

the consent of the other to the extent that the family may
have benefited;

d) All taxes, liens, charges and expenses, including major and

minor repairs, upon the community property;

e) All taxes and expenses for mere preservation made during

marriage upon separate property of either spouse used by
the family;

f) Expenses to enable either spouse to commence or complete

a professional or vocational course, or other activity for self-
improvement;

g) Ante-nuptial debts of either spouse insofar as they have

redounded to the benefit of the family;

h) The value of what is donated or promised by both spouses

in favor of their common legitimate children for the
exclusive purpose of commencing or completing a
professional or vocational course or other activity for self-
improvement;

i) Expenses of litigation between spouses unless the suit is

found to be groundless.

Notes:

1) If the conjugal partnership is insufficient to cover the

foregoing liabilities, the spouses shall be solidarily liable
for the unpaid balance with their separate property. (Art.
121)

14
 2) The payment of personal debts contracted by either
spouse before the marriage, that of fines and
indemnities imposed upon them, as well as of the
support of illegitimate children of either spouse, may be
enforced against the partnership assets after the
responsibilities enumerated in Art. 121 have been
covered, if the spouse who is bound should have no
exclusive property or if it should be insufficient; but at
the time of the liquidation of the partnership, such
spouse shall be charged for what has been paid for the
purpose above-mentioned. (Art. 122, FC)

 Administration and Disposition of the Conjugal Partnership

of Gains:

o General Rule: Administration shall belong to both spouses

jointly.

o Exceptions:

a) In case of disagreement, husband’s decision shall prevail,

subject to recourse to the court by the wife for proper
remedy within 5 years from date of contract
implementing such decision. (Art. 124, FC)

b) In case one spouse is incapacitated or unable to

participate in the administration of the common
properties, the other spouse may assume sole powers of
administration (Art. 124, FC).

o These powers do NOT include:

a. Disposition
b. Encumbrance

o Written consent of the other spouse or authority of court

is required, otherwise disposition or encumbrance is
VOID.

o The same rule applies to ACP.*

o Notes:

1) The husband and wife are the joint administrators of their

properties forming part of the conjugal partnership of

15
 gains. The sale by the husband of the property belonging
to the conjugal partnership or of the absolute community
without the consent of the wife or authority of the
court is void. (Abalos vs. Macatangay, G.R. No. 155043,
September 30, 2004.)

The transaction, however, shall be construed as a

continuing offer on the part of the consenting spouse and
the third person, until acceptance by the other spouse or
authorization by the court before the offer is withdrawn
by either or both offerors. (Art. 124)

2) Neither spouse may donate any community property

without the consent of the other but either may, without
the other’s consent, make moderate donations for charity
or on occasions of family rejoicing or family distress.
(Art. 125)

The same rule applies to ACP.*

 Dissolution of Conjugal Partnership of Gains Regime:

1. The conjugal partnership terminates (Art. 126):

a. upon the death of either spouse;

o Surviving spouse shall liquidate the CGP within one (1)

year from death of the deceased spouse if no judicial
settlement is instituted. Failure to do so upon the
lapse of one (1) year makes any disposition or
encumbrance of ACP void.

o Mandatory regime of complete separation of property

governs subsequent marriage of surviving spouse if
he/she fails to comply with liquidation of ACP of
previous marriage. (Art. 130)

b. when there is a decree of legal separation;

c. when the marriage is annulled or declared void; or
d. in case of judicial separation of property during the
marriage under Articles 134 to 138.

The same rule applies to ACP.*

16
 Effect of Separation in Fact (Art. 127):

- General Rule: The separation in fact between the husband and

wife shall not affect the regime of absolute community of
property.

- Exceptions:

1) The spouse who leaves the conjugal home or refuses to live

therein without just cause shall not have the right to be
supported.

2) 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.

3) In the absence of sufficient community property, the separate

property of both spouses shall be solidarily liable for the
support of the family. The spouse present shall, upon proper
petition in a summary proceeding, be given judicial authority
to administer or encumber any specific separate property of
the other spouse and use the fruits or proceeds thereof to
satisfy the latter’s share. (Art. 127) The same rule applies to
ACP.*

 Liquidation of the Conjugal Partnership Assets and Liabilities

(Art. 129):

Upon dissolution of the absolute community regime, the

following procedure shall apply:

1. Inventory, listing separately all the properties of the

conjugal partnership and the exclusive properties of each
spouse.

2. Amounts advanced by the conjugal partnership in payment

of personal debts and obligations of either spouse shall be
credited to the conjugal partnership as an asset thereof.

3. Each spouse shall be reimbursed for the use of his or her

exclusive funds in the acquisition of property or for the value
of his or her exclusive property, the ownership of which has
been vested by law in the conjugal partnership.

4. The debts and obligations of the conjugal partnership shall

be paid out of the conjugal funds. In case of insufficiency of

17
 said assets, the spouses shall be solidarily liable for the
unpaid balance with their separate properties.

5. Whatever remains of the exclusive properties of the spouses

shall be delivered to them.

6. Unless the owner had been indemnified from whatever

source, the loss or deterioration of movables used for the
benefit of the family, belonging to either spouse, even due
to fortuitous event, shall be paid to said spouse from the
conjugal funds, if any.

7. The net remainder of the conjugal partnership properties

shall constitute the profits, which shall be divided equally
between husband and wife, unless a different proportion or
division was agreed upon in the marriage settlement or
unless there has been a voluntary waiver or forfeiture of
such share.

8. The presumptive legitime of the common children shall be

delivered upon partition, in accordance with Art. 51.

9. In the partition of the properties, the conjugal dwelling and

the lot shall be adjudicated to the spouse with whom the
majority of the common children choose to remain unless
the court has decided otherwise. In case there is no such
majority, the court shall decide, taking into consideration the
best interests of said children.

Note: From the common mass of property support shall be

given to the surviving spouse and to the children during the
liquidation of the inventoried property and until what
belongs to them is delivered; but from this shall be
deducted that amount received for support which
exceeds the fruits or rents pertaining to them. (Art. 133)

SEPARATION OF PROPERTY

In the absence of an express declaration in the marriage settlements,

the separation of property between spouses during the marriage shall not
take place except by judicial order. Such judicial separation of

18
property may either be voluntary or for sufficient cause. (Art. 134,
FC)

 Causes for judicial separation of property (Art. 135):

Any of the following shall be considered sufficient cause for

judicial separation of property:

1) Petitioner’s spouse has been sentenced with a penalty which

carries with it civil interdiction.

2) Loss of parental authority of the petitioner’s spouse as decreed

by the court.

3) Petitioner’s spouse has been judicially declared as an absentee.

4) Abandonment by the petitioner’s spouse or failure to comply

with the obligations to the family as provided under Art. 101.

5) The spouse granted the power of administration in marriage

settlement abused such power.

6) At the time of the petition, spouses have been separated in fact

for at least 1 year and reconciliation is highly improbable.

Note: In cases provided for in (1), (2) and (3), the presentation
of the final judgment against the guilty or absent spouse shall be
enough basis for the grant of the decree of judicial separation of
property.

 Effects of Judicial Separation of Property:

1) Dissolution and liquidation of ACP/CPG.

2) Liability of the spouses to creditors shall be solidary with their
separate properties.
3) Mutual obligation to support each other continues except when
there is legal separation.
4) After dissolution of the absolute community property or of the
conjugal partnership, the provisions on complete separation of
property shall apply. (Art. 138)
4) Rights previously acquired by creditors are not prejudiced.

 Revival of Former Property Regime (Art. 141):

The spouses may, in the same proceedings where separation of

property was decreed, file a motion in court for a decree reviving the
19
 property regime that existed between them before the separation of
property. It shall be governed by Art. 67 and may be filed in any of
the following instances:

1) Termination of civil interdiction.

2) Reappearance of the absentee spouse.
3) Upon satisfaction of the court that the spouse granted
administration in the marriage settlement will not abuse
that power and authorizes resumption of administration.
4) Return and resumption of common life with spouse by the
other who left the conjugal home without decree of legal
separation.
5) Restoration of parental authority to the spouse previously
deprived thereof.
6) Reconciliation and resumption of common life of spouses
who had been separated in fact for at least one (1) year.
7) When after voluntary dissolution of the absolute
community of property or conjugal partnership has been
judicially decreed upon the joint petition of the spouses,
they agree to the revival of the former property regime.
No voluntary separation of property may
thereafter be granted.

Note: The administration of all classes of exclusive property of

either spouse may be transferred by the court to the other spouse
when:

1) When one spouse becomes the guardian of the other;

2) When one is judicially declared an absentee;
3) When one spouse is sentenced to a penalty which carries
with it civil interdiction; or
4) When one spouse becomes a fugitive of justice or is in
hiding as an accused in a criminal case.

If the other spouse is not qualified by reason of incompetence,

conflict of interest, or any other just cause, the court shall appoint a
suitable person to be administrator. (Art. 142)

REGIME OF COMPLETE SEPARATION OF PROPERTY

1) Separation of property may refer to present or future property or

both. It may be total or partial. In the latter case, the property not
agreed upon as separate shall pertain to the absolute community.
(Art. 144, FC)

20
 2) Each spouse shall own, dispose of, possess, administer and enjoy his
or her own separate estate without need of the consent of the other.
To each spouse shall belong all earnings from his 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.
145)

3) The spouses contribute to the family expenses PROPORTIONATELY

with their income or in case of insufficiency or default thereof, with
the current market value of their separate properties. However, the
liability of the spouses to the creditors for family expenses is
SOLIDARY. (Art. 146)

PROPERTY REGIME OF UNIONS WITHOUT MARRIAGE

Under Article 147:

 Applicability:

To qualify under Article 147, the man and the woman must: a)
be capacitated to marry each other; b) live exclusively with each
other as husband and wife; and c) without the benefit of marriage or
under a void marriage. All these requisites must concur. Absence of
any of these requisites will remove the contracting parties from the
ambit of Article 147. The void marriages referred to under Art. 147
include void marriages under Articles 36, 44, 53 and void marriages
where there is absence of consent, authority of the solemnizing
officer, a valid marriage license, a marriage ceremony as provided for
under Article 4 of the Family Code.

The co-ownership does not include their separate properties

(i.e., those acquired by the parties before the marriage and those
acquired by them gratuitous title during the marriage).

 Ownership of Salaries and Wages/Property Acquired while

Living Together

Presumed to be obtained by their joint efforts, work or industry

and shall be owned by them in equal shares. Efforts in care and
maintenance of family and household considered contribution to the
co-ownership. The parties share in said properties equally.

 Forfeiture of share

21
 When only one of the parties to a void marriage is in good
faith, share of party in bad faith in the co-ownership shall be
forfeited:

1) In favor of their common children

2) In case of default or waiver by any or all common children

or their descendants, each vacant share shall belong to their
respective surviving descendants.

3) In the absence of descendants, such share shall belong to

the innocent party.

Forfeiture takes place upon termination of cohabitation.

Under Article 148:

 Applicability

Applicable in cases of cohabitation not falling under Art. 147. In

short, if any one of the requirements under Art. 147 is absent, Art.
148 will apply. Parties do not have the capacity to marry due to
some legal impediments such as adulterous relationships and
marriages which are bigamous, incestuous or void by reason of public
policy under Art. 38.

 Ownership of Property Acquired by Both through their work

and industry While Living together:

The co-ownership includes only properties acquired by both of

them through their actual joint contribution of money, property or
industry and shall be owned by them in common in proportion to
their respective contributions. The parties may be deemed to be co-
owners of a property acquired during the cohabitation only upon
proof that each made an actual contribution to its acquisition.
Without proof of actual contribution, a co-ownership under Art. 148
cannot arise. There is no presumption of joint acquisition. When
there is evidence of joint acquisition but none as to the
extent of actual contribution, there is a presumption of equal
sharing.

 Forfeiture

1) If one of the parties is validly married to another, his or her share

in the co-ownership shall accrue to the ACP or CPG existing in
such valid marriage.

22
2) If party who acted in bad faith is not validly married to another,
his/her share shall be forfeited in the same manner as provided in
Art. 147. The rules on forfeiture shall likewise apply even if both
parties are in bad faith.

23