Property Relations
➤ Governing Rules
1. Marriage settlement
2. By the provisions of this Code
3. Local custom
(Art. 74, Family Code)
Marriage settlement
➤ The spouses may agree on the following marriage settlements:
● Conjugal partnership of gains
● Absolute community of property
● Complete separation of property
● Other regime provided not contrary to law, morals, good
customs, public order and public policy.
Post Modifications (Art. 76, FC)
➤ As a rule, any modifications in the marriage settlements must be
made before the celebration of marriage.
● The modification must be in writing and signed by the
parties;
● Not prejudicial to third person unless recorded in the
local civil registrar and registry of property.
➤ Exceptions: Judicially approved and refers only to instances
provided in Articles 66, 67, 128, 135 and 136 of the Family Code of
the Philippines.
Exceptions:
a. The absolute community or conjugal partnership was
dissolved and liquidated upon a decree of legal
separation (Art. 66);
b. The spouses who were legally separated reconciled and
agreed to revive their former property regime (Art.
67);
c. Judicial separation of property had been on the ground
that a spouse abandons the other without just cause or
fails to comply with his obligations to the family (Art.
128);
d. There was judicial separation of property under Art.
135;
e. The spouses jointly filed a petition for the voluntary
dissolution of their absolute community or conjugal
partnership of gains under Art. 136.
Parties to Marriage Settlement
◉ As a rule, only future spouses can be parties to the settlement.
◉ Exceptions: if one of the future spouses is
- 18 but below 21 years old; or
- Civilly interdicted; or
- Disabled.
➤ In this case, parents or guardians will be part of the settlement,
otherwise such settlement is not valid.
Formalities
◉ It shall be in writing
- not necessarily in public instrument
◉ What if it is orally made?
- The settlement is unenforceable under the Statute of
Frauds (Art. 1403 (2)(c), NCC)
◉ To affect third person, it must be registered in the local civil
registry and the registry of properties.
By the Provisions of this Code
◉ In the absence of marriage settlement, or the settlement is void:
Governing Laws (Art. 80)
◉ Property relations shall be governed by Philippine laws,
regardless of the place of the celebration of the marriage and their
residence (Nationality Rule).
Philippine Laws Do not Apply (Art. 80)
◉ Exceptions:
1. Both spouses are alien.
2. 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.
3. With respect to the extrinsic validity of contracts entered
into the Philippines but affecting property situated in a
foreign country whose laws require different formalities
for its extrinsic validity.
Query
◉ What is the effect in the settlement of the noncelebration of
marriage?
➤ The settlement is void, except those agreement which do not
depend on the celebration of marriage.
➤ Ex. The acknowledgement of illegitimate child is
valid even if the settlement is void.
Donation Proper Nuptias
◉ Requisites:
1. It must be made before the celebration of marriage;
2. It must be made in consideration of marriage;
3. It must be made in favor of one or both of the future
spouses.
- This is governed by rules on ordinary donations, see
Art. 748 and 749 of NCC, formalities.
Limitation on Donation Proper Nuptias
◉ If property relation is other than absolute community of property,
future spouses cannot donate to each other more than 1/5 of their
present property.
● Excess is void.
◉ Donation of future property by future spouses shall be
governed by testamentary succession and formalities of will.
● Exception to the rule that future property cannot be
donated.
Donation Subject to Encumbrance
◉ It is valid and binding to the donee if that donee has actual
knowledge of encumbrance or if the same is recorded in the proper
registry of property.
◉ In case of foreclosure, and when there is deficiency, the donee is
not liable, However, if there is an excess, the donee is entitled thereto.
Revocation of Donation Proper Nuptias (“may”)
1. Non-celebration of marriage
2. Judicial declaration of nullity of marriage
3. No parental consent
4. Annulment of marriage
5. Legal separation
6. Compliance of resolutory condition
7. Acts of ingratitude
Notes on Revocation:
◉ Non celebration of marriage
Notes on Revocation:
◉ Judicial declaration of nullity of marriage
- Donation is not affected unless revoked by the donor;
- The donation is revoked by operation of law if the donee
contracted the marriage in bad faith.
- If the donor is a third person, no revocation by operation
of law, such third person may revoke the donation.
Notes on Revocation:
◉ Annulment of marriage, legal separation, and fulfillment of
resolutory condition
- Same rulings in Judicial declaration of nullity of
marriage;
- Except: when the marriage took place without the
consent of the parents or guardian
● No need to declare by the court that the
marriage is annulled.
Notes on Revocation:
◉ Acts of Ingratitude
1. Donee commits offense against the person, the honor or
the property of the donor, or of his wife or children
under his parental authority;
2. Donee imputes to the donor any criminal offense, or any
act involving moral turpitude, even though he should
prove it, unless the crime of the act has been committed
against the donee himself, his wife or children under his
authority;
3. Donee unduly refuses him support when the donee is
legally or morally bound to gives support to the donor
(Art. 765, NCC).
Notes on Revocation
◉ Prescriptive Period
- Legal separation, 5 years from the time the decree of
legal separation becomes final;
- Acts of ingratitude, 1 year from the time the donor had
knowledge of the act;
- Other grounds, 10 years for the ground based on law.
Donations During the Marriage
❏ Donation between spouses during the marriage shall be void,
regardless of the property regime;
❏ Except: moderate gifts which the spouses may give each other on
the occasion of family rejoicing; donation mortis causa.
- This rule applies to husband and wife without valid
marriage.
Sale and Lease between Spouses
- The spouses are likewise prohibited from selling or
leasing to each other during their marriage unless their
property relation is complete separation of property.
Application:
On the occasion of Digna’s marriage to George, her father gave her a
donation proper nuptias of a car. Subsequently, the marriage was
annulled because of the psychological immaturity of George. May
Digna’s father revoke the donation and get back the car? Explain.
Application:
H donated a parcel of land to W, his common law wife. Later, they
married, but soon afterwards H died, survived only by a sister, S and
W. S sued to recover the property donated, but W resisted. Decide
with reason.
System of Absolute Community
“The Default System”
Commencement
◉ The absolute community property (ACP) shall commence at the
precise moment that the marriage is celebrated.
◉ Any stipulation, express or implied, for the commencement of
the community regime at any other time shall be void.
Waiver
◉ No waiver of rights, interest, shares and effects of the absolute
community during the marriage can be made except in case of judicial
separation of property;
◉ Waiver xxx shall appear in a public instrument and shall be
recorded;
◉ Creditors affected by such waiver may petition the court to
rescind the waiver to the extent of the amount sufficient to cover the
amount of their credits.
Suppletory Rules
◉ Rules on co-ownership.
Community Properties under ACP
● All properties owned by the spouses at the time of the
celebration of the marriage or acquired thereafter.
● Presumption: property acquired during the marriage is
presumed to belong to the community, unless it is
proved exclusive.
● Winnings during the marriage in any game of chance,
betting, sweepstakes, or any other kind of gambling
whether permitted or not by law.
Exclusive Properties under ACP
● Property acquired during the marriage by gratuitous title
by either spouse, and the fruits as well as income
thereof, if any, unless it is expressly provided by the
donor, testator, or grantor that they shall form part of the
community property;
● Property for personal and exclusive use of either spouse.
However, jewelry shall form part of the community
property.
Art. 113 FC
● 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.
Exclusive Properties under ACP
● 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;
● Lost during the marriage in any game of chance, betting,
sweepstakes, or any other kind of gambling whether
permitted or not by law.
Charges Upon and Obligations of the Absolute Community
● Support of the spouses, their common children,
legitimate children of either spouse, except illegitimate;
● Debts and obligations before (ante nuptial debts) or
during the marriage (without consent) for the benefit of
the community and of the family;
● Taxes, liens, charges, expenses, and repairs to the
community; or to separate property preserved (not
improvement) and used for the family;
- Note: If with consent of both spouse, though not
beneficial to the family, it is chargeable to the
community property.
Charges Upon and Obligations of the Absolute Community
➤ Expenses for education and self – improvement of either spouse,
or common legitimate children;
➤ Litigation expenses between spouses, unless the suit is found to
be groundless.
Note: If the community property is not sufficient, the spouses shall be
solidary liable with their separate properties.
Charges Upon and Obligations of the Exclusive Property
● Those that are not mentioned in the foregoing;
● For ante nuptial debts not redounded to the benefit of
the family, support of illegitimate children, and
liabilities by reason of crime or quasi-delict, when the
exclusive property is not sufficient, it shall be charged
with the share of the spouse concerned in the
community property upon liquidation.
Application:
Which of the following is chargeable to or form part of the
community property: (a) educational expenses of the spouse, (b) debts
during the marriage, (c) lotto winnings, and (d) horse race bet.
Administration, and Enjoyment of Community Property
❏ It shall belong to both spouses jointly. In case of disagreement,
the husband’s decision shall prevail subject to recourse to court by the
wife for a proper remedy, which must be availed within five years
from the date of the contract implementing such decision.
❏ If one spouse is incapacitated to administer the common
properties, the other spouse may assume sole powers of
administration, without the court approval or authorization.
Restrictions in Disposition
◉ The spouse, or spouse-administrator cannot dispose or encumber
the community property without the authority of the court OR a
written consent of another spouse, otherwise void;
- Subject to continuing offer rule.
◉ Either spouse may dispose by will of his or her interest in the
community property.
Continuing Offer Rule
◉ The transaction shall be construed as a continuing offer on the 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 of both offerors.
Restrictions in Administration Liquidation of the Absolute Community Assets and Liabilities
◉ Neither spouse may donate community property without the
consent of the other, except moderate donations for charity or on
occasions of family rejoicing or family distress.

Dissolution of Absolute Community Property

1. Death of either spouse;
2. Decree of legal separation;
3. Marriage is annulled or declared void;
4. Judicial separation of property;
5. Abandonment;
6. Judicial authorization obtained.

Separation of Facts
➤ Rule is, it shall not affect the regime of absolute community; Notes on Liquidation
➤ Except: ➤ Note 1:
- Abandonment - If the community properties are insufficient to pay
- Judicial Authorization liabilities, the spouses are solidary liable with their
- Judicial authority to administer or to encumber exclusive properties.
➤ Note 2:
Abandonment - Net community properties shall be divided equally
When? unless there is an agreement to the contrary or there has
- He or she left the conjugal dwelling without intent to been waiver of such shares.
return; - For net profits subject to forfeiture in accordance with
- duration is three months or more; or Art. 43 (2) and 63 (2), the said profits shall be the
- has failed within the same period to give any increase in value between the market value of the
information as to his or her whereabouts. community property at the time of the celebration of the
- Shall not have the right to be supported. marriage and the market value at the time of its
dissolution.
Judicial Authorization ➤ Note 3:
When? - Children below the age of seven years are deemed to
- It may be obtained in a summary proceeding when the have chosen the mother, unless the court has decided
consent of one spouse to any transaction of the other is otherwise. In case there is no such majority, the court
required by law. shall decide taking into consideration the best interest of
said children.
Judicial Authority
When? Conjugal Partnership of Gains (CPG)
“The System Under the Civil Code”
- If the community property is not sufficient, the separate
properties of the spouses shall be solidary liable for the Commencement
support of the family. ◉ The Conjugal Partnership of Gains (CPG) shall commence at the
precise moment that the marriage is celebrated.
- The spouse present shall be given judicial authority to
administer or encumber any specific separate property
◉ Any stipulation, express or implied, for the commencement of
of the spouse and use of the fruits or proceeds thereof to
the community regime at any other time shall be void.
satisfy the latter’s share.
Waiver
Remedies in Case of Abandonment
● No waiver of rights, interest, shares and effects of the
- Petition for receivership;
conjugal property during the marriage can be made
except in case of judicial separation of property;
- Judicial separation of property;
● xxx shall appear in a public instrument and shall be
- Authority to be the sole administrator of the absolute
recorded;
community;
● Creditors affected by such waiver may petition the court
to rescind the waiver to the extent of the amount
sufficient to cover the amount of their credits.
Suppletory Rules
● Contract of Partnership.
Conjugal Properties
◉ Under this regime, 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;
◉ In case of dissolution, equal division unless agreed in the
marriage settlement.
Exclusive Properties
1. Brought to the marriage as his or her own;
2. Acquired during the marriage by gratuitous title;
- See Art. 113 (Spouses as joint donees)
- See Art. 114 (onerous donation)
- See Art. 115 (Retirement benefits, pensions and other
similar benefits.
3. Acquired by right of redemption by barter or by
exchange with property belonging to only one of the
spouses;
4. Purchased with exclusive money of the wife or of the
husband.
Rights of the Spouse to Exclusive Properties
◉ Retain the ownership, possession, administration, and enjoyment
of the exclusive properties;
◉ Transfer the administration to another party by means of public
instrument and be recorded in the registry of property;
◉ Mortgage, encumber, alienate or otherwise dispose of his or her
exclusive properties.
Conjugal or Exclusive?
◉ Installments (partly from exclusive and partly from conjugal)
- Ownership is vested before the marriage, exclusive; if
vested during the marriage, conjugal; in either case,
subject to reimbursement upon liquidation of
partnership.
◉ Credit:
- If belonging to one of the spouses and collected during
the marriage, principal is exclusive of that spouse while
the interest in conjugal;
Conjugal or Exclusive?
◉ Improvements (to separate property)
- Cost of improvement is more than the value of the
property at the time of the improvement, conjugal
otherwise exclusive, in either case subject to
reimbursement at the time of liquidation of the conjugal
partnership.
◉ Winnings and losses
Charges Upon and Obligations of the Conjugal Properties
◉ Support of the spouses, their common children, legitimate
children of either spouse, except illegitimate;
◉ Debts and obligations before (ante nuptial debts) or during the
marriage for the benefit of the community and of the family;
◉ Taxes, liens, charges, expenses, and repairs to the community, or
to separate property preserved (not improvement) and used for the
family;
Charges Upon and Obligations of the Absolute Community
◉ Expenses for education and self – improvement of either spouse,
or common legitimate children;
◉ Litigation expenses between spouses, unless the suit is found to
be groundless.
Note: If the conjugal property is not sufficient, the spouses shall be
solidary liable with their separate properties.
Charges Upon and Obligations of the Exclusive Property
◉ Those that are not mentioned in the foregoing;
◉ For ante nuptial debts not redounded to the benefit of the family,
that of fines and indemnities imposed upon them, and support of
illegitimate children, when the exclusive property is not sufficient, it
shall be charged with the share of the spouse concerned in the
community property upon liquidation.
Administration, and Enjoyment of Conjugal Property
❏ It shall belong to both spouses jointly. In case of disagreement,
the husband’s decision shall prevail subject to recourse to court by the
wife for a proper remedy, which must be availed within five years
from the date of the contract implementing such decision.
❏ If one spouse is incapacitated to administer the common
properties, the other spouse may assume sole powers of
administration, without the court approval or authorization.
Restrictions in Disposition
◉ The spouse, or spouse-administrator cannot dispose or encumber
the community property without the authority of the court OR a
written consent of another spouse, otherwise void;
◉ Either spouse may dispose by will of his or her interest in the
community property.
Restrictions in Administration
◉ Neither spouse may donate community property without the
consent of the other, except moderate donations for charity or on
occasions of family rejoicing or family distress.
Dissolution of Conjugal Partnership of Gains
1. Death of either spouse;
2. Decree of legal separation;
3. Marriage is annulled or declared void;
4. Judicial separation of property;
5. Abandonment;
6. Judicial authorization obtained.
Separation of Facts ➤ Note 2:
◉ Rule is it shall not affect the regime of absolute community; - Net community properties shall be divided equally
unless there is an agreement to the contrary or there has
◉ Except: been waiver of such shares.
- Abandonment - For net profits subject to forfeiture in accordance with
- Judicial Authorization Art. 43 (2) and 63 (2), the said profits shall be the
- Judicial authority to administer or to encumber increase in value between the market value of the
community property at the time of the celebration of the
Abandonment marriage and the market value at the time of its
When? dissolution.
- He or she left the conjugal dwelling without intent to ➤ Note 3:
return; - Children below the age of seven years are deemed to
- duration is three months or more; or have chosen the mother, unless the court has decided
- has failed within the same period to give any otherwise. In case there is no such majority, the court
information as to his or her whereabouts. shall decide taking into consideration the best interest of
said children.
Judicial Authorization
When? Complete Separation of Property
- It may be obtained in a summary proceeding when the
consent of one spouse to any transaction of the other is As a prenuptial agreement
required by law. ◉ Complete ownership over his/her properties, including earnings
and fruits thereof, without consent of the other spouse;
Judicial Authority
◉ Both spouses shall bear the family expenses in proportion to their
When?
income, or in case of insufficiency or default thereof, to the current
- If the community property is not sufficient, the separate
market of their separate properties;
properties of the spouses shall be solidary liable for the
◉ The liability of the spouses to creditors for family expenses shall
support of the family.
be solidary.
◉ Separation of property may refer to the present or future property
- The spouse present shall be given judicial authority to
or both. It may be total or partial. In the latter case, the property not
administer or encumber any specific separate property
agreed upon as a separate shall pertain to the absolute community.
of the spouse and use of the fruits or proceeds thereof to
satisfy the latter’s share.
Separation of Property During the Marriage (Judicial Separation)
Remedies in Case of Abandonment
- Petition for receivership;
- Judicial separation of property;
- Authority to be the sole administrator of the absolute
community;

Liquidation of the Conjugal Assets and Liabilities

Effects of Decree of Separation

◉ Complete ownership over his/her properties, including earnings
and fruits thereof, without consent of the other spouse;

◉` Both spouses shall bear the family expenses in proportion to their

Notes on Liquidation income, or in case of insufficiency or default thereof, to the current
market of their separate properties;
➤ Note 1:
- If the community properties are insufficient to pay
◉ The liability of the spouses to creditors for family expenses shall
liabilities, the spouses are solidary liable with their
be solidary.
exclusive properties.
Separation of Property During the Marriage
Administration of Exclusive Property of Either Spouse by
Another Spouse
1. When one spouse become the guardian of the other;
2. When one spouse is judicially declared an absentee;
3. When one spouse is sentenced to a penalty with civil
interdiction;
4. When one spouse becomes a fugitive from justice or is
in hiding as an accused in a criminal case.
➤ The court may appoint an administrator if the other spouse is
incompetent, with conflict of interest, or any other just cause.
Property Regime of Unions Without Marriage
(Common Law Spouses)
Common Law Spouses Without Impediments
◉ Man and woman living as husband and wife without a marriage
or under a void marriage, in either case must WITHOUT
IMPEDIMENT.
- 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
rules on co-ownership;
→ Presumed to be obtained by joint efforts, work or industry
◉ Neither party can encumber or dispose by acts inter vivos of his
or her share in the property acquired during cohabitation and owned
in common, without the consent of the other, until after the
termination of their cohabitation.
◉ Art. 147 applies to psychological incapacity or a void marriage
due to absence of valid marriage license but without impediment.
◉ Forfeiture of Share – when only one the parties to a void
marriage is in good faith, the share of the party in bad faith in the
co-ownership shall be forfeited in accordance with the following:
(1) in favor of their common children;
(2) respective surviving descendants;
(3) innocent party.
Common Law Spouses With Impediments
◉ Only the properties acquired by both of the parties through their
actual joint contribution of money, property, or industry shall be
owned by them in common in proportion to their respective
contributions.
◉ In the absence of proof to the contrary, their contributions and
corresponding shares are presumed to be equal.
◉ If one of the parties 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.
◉ If the party who acted in bad faith is not validly married to
another, his or her share shall be forfeited in the manner provided in
Art. 147.
References:
New Civil Code of the Philippines;
Law on Persons and Family Relations, Rabuya, Elmer, 2017 Edition.
The Family
◉ A basic social institution which public policy cherishes and
protects.
Earnest Effort to Compromise
◉ No suit between members of the family shall prosper unless there
is an allegation in the verified complaint or petition that earnest
efforts to compromise between the parties have failed.
Family Relations
1. Between husband and wife;
2. Between parents and children;
3. Among ascendants and descendants;
4. Among brothers and sisters whether full or half blood.
What is Family Home?
◉ It is the dwelling house and the land where the spouses or the
unmarried head of the family resides together with their family.
◉ A family home is constituted by operation of law when all the
requisites concur.
Requisites of Family Home
1. It is constituted jointly by the husband and wife or the
unmarried head of the family;
a. Actual occupation as a family residence;
2. The house and the land must be owned by the person
constituting it;
a. Either community or conjugal properties or
exclusive property with the consent of the
owner;
 3. It must be permanent;
a. It continues and cannot be partitioned despite
death of one or more spouses or unmarried
head of the family for 10 years or as long as the
minor beneficiary lives.
4. The family must actually reside in the home;
a. Not a family home if the family is residing
abroad and only overseer who maintains the
family home.
5. Only one family home can be constituted;
6. Its value must not exceed P 300,000 for urban areas and
P 200,000 for rural areas.
2. Their parents, ascendants, descendants, brother 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.
Beneficiaries of Family Home
◉ Thus, the children cannot oppose the partition of the alleged
family home if they do not live in the family home and do not depend
upon the head of the family for support.
Problems
Mr. C is the creditor of spouses M and F

Exempt from Execution

◉ Family home is a real right that is gratuitous, inalienable, and
free from attachment. References:
New Civil Code of the Philippines;
◉ A family home is exempt from execution, forced sale or Reviewer on Civil Law, Timoteo B. Aquino, 2018, Rex Bookstore
attachment.

Improvements
◉ In case of improvement of the family home, a creditor may cause
the attachment of the family home upon proof of the following cases:
1. There is an increase in the actual vale of the family
home;

2. The increase resulted from voluntary improvement on

the property introduced by the persons constituting the
family home, its owners or any of its beneficiaries;

3. The increase value exceed the threshold.

Exceptions to Exemption from Execution

1. Non payment of taxes;

2. Debts prior to constitution of family home;

3. Debts secured by mortgage before of after the

constitution of family home; and

4. Debts due to laborers, mechanics, architects, builders,

material men and others who have rendered service or
furnished materials for the construction of the building.

Waiver and Laches

◉ The family home’s exemption from execution must be set up and
proved to the Sheriff before the sale of the property at public auction.

◉ The exemption may be waived or be barred by laches by the

failure to set up and prove the status of the property as family home.

Beneficiaries of Family Home

1. The husband and wife, or an unmarried person who is
the head of the family; and