PROPERTY

RELATIONS
Between Husband and Wife

Law, Persons and Family Relations

 Property Relations.

The property relations 1) Marriage Settlements;

between husband and wife 2) Provisions of the Family
shall be governed in the
following order: Code; and
3) Local Customs

Property Relations Between Husband and Wife

 Marriage Settlements.

Marriage settlements is also 1) Contract that must be

called ante nuptial contract in writing
2) Signed by the parties to
a marriage
3) Executed before the
celebration of marriage
4) The object is their
property relations
Property Relations Between Husband and Wife
 Marriage Settlements.

Who are the parties? 1) Future husband and wife.

2) If parties need parental
consent, parent or
guardian must be made a
party.
3) If parties under civil
interdiction or other
disability, guardian
appointed by the court
must be made a party.
Property Relations Between Husband and Wife
 Property Regimes.

Property regimes named in 1) Absolute community of

property (ACP)
the Family Code:
2) Conjugal partnership of
gains (CPG)
3) Complete separation of
property (CSP)
4) Any other regimes
(combination of 2 or all)

Property Relations Between Husband and Wife

 Favored Property Regime.
In the absence of marriage
settlement or when the
property regime provided
therein is void.
Property Relations Between Husband and Wife
Family Code (Art. 75)
Absolute Community of Property (ACP)
New Civil Code (Art. 119)
Relative Community of Property or
Conjugal Partnership of Gains (CPG)
System of
ABSOLUTE
COMMUNITY
Property Relations between Husband and Wife
 System of
Absolute Community.
1) General Provisions 4) Ownership,
Administration,
2) What Constitutes Enjoyment and
Community Property Disposition
3) Charges Upon and 5) Dissolution
Obligations 6) Liquidation of Assets &
Liabilities

Property Relations Between Husband and Wife

 General Provisions.

Nature of Interest of • Prior to liquidation of CP,

Interest of each spouse in the
spouses in the community conjugal assets are:
of property. 1) Inchoate, a mere
expectancy;
2) Does not constitute a legal
nor an equitable estate;
3) Does not ripen into title.

Property Relations Between Husband and Wife

 General Provisions.

Nature of Interest of • Rights of husband or wife to

spouses in the community ½ of conjugal assets does
of property. not vest until:
1) Dissolution and
liquidation of CP; or
2) Dissolution of marriage

Property Relations Between Husband and Wife

 General Provisions.

Nature of Interest of • Limited to the net remainder,

resulting from liquidation of CP
spouses in the community after its dissolution
of property. • Net Assets = Community Property
– Conjugal Obligations
• Net Assets divided equally
between spouses or respective
heirs.

Property Relations Between Husband and Wife

 General Provisions.

Waiver of Rights • Waiver of rights, interest,

shares and effect made by a
spouse is VOID.

• Exceptions:
– Judicial Separation of Property,
or
– Legal Separation

Property Relations Between Husband and Wife

 General Provisions.

Formal Requisites of Waiver • Must appear in a public

instrument

• Must be recorded in:

– The local civil registry; and
– The registry of property

Property Relations Between Husband and Wife

 General Provisions.

Protection to Creditors • Waiver should not prejudice

the creditors

• Waiver can be rescinded by

creditors sufficient to cover
the amount of credits.

Property Relations Between Husband and Wife

 General Provisions.

Law on Co-Ownership • Law on Co-Ownership is

applied to ACP

• Art. 484-501, New Civil

Code

Property Relations Between Husband and Wife

 What Constitutes
Community Property.
• All property owned by the
In the absence of spouses at the time of the
marriage settlements, celebration of marriage; and
community property,
generally, consists: • Acquired after the
celebration of marriage

Property Relations Between Husband and Wife

 What Constitutes
Community Property.
• Property acquired during the
marriage by gratuitous title, the fruits,
Excluded from and income unless expressly provided
by donor, testator, or grantor that they
Community Property: shall form part of the community
property;
• Property for personal use of each
spouse except jewelry;
• Property acquired before marriage
who has legitimate descendants by a
former marriage, including its fruits
and income

Property Relations Between Husband and Wife

 What Constitutes
Community Property.
Property acquired during
Presumptions the marriage is presumed
to belong to the
community, except those
excluded therefrom.

Property Relations Between Husband and Wife

 Charges Upon the ACP.
1) Support of the spouses and
The absolute community children;
property shall be liable 2) Debts and Obligations Contracted
During Marriage;
for: 3) Debts Contracted by one Spouse
Without Consent of the other;
4) Tax, Liens, Repairs on Community
Property;
5) Taxes and Expenses for Mere
preservation of Separate
properties

Property Relations Between Husband and Wife

 Charges Upon the ACP.
6) Expenses for professional,
The absolute community Vocational, or Self-Improvement
property shall be liable Course of Spouses;
7) Ante-nuptial Debts that Benefited
for: the Family;
8) Donations by Both Spouses to
Common Legitimate Children;
9) Ante-Nuptial Debts not under (7),
Support of Illegitimate Children,
Liabilities of Either Spouse Arising
from Crime or Quasi-Delict;
10) Expenses of Litigation between
Spouses
Property Relations Between Husband and Wife
 Charges Upon the ACP.

Support from Spouses • Even if not living together

except when a spouse
leaves conjugal home
without just cause
• Even during pendency of
action for legal separation
or annulment of marriage

Property Relations Between Husband and Wife

 Charges Upon the ACP.

Common children • Legitimate children of

previous marriage
• Illegitimate children -
follow the provisions on
Support and (9)

Property Relations Between Husband and Wife

 Charges Upon the ACP.

2. Debts and Obligations • Either by both spouses or

Contracted During one of them, with the
Marriage consent of the other.
• In (2) and (3), creditors need
not prove that the debts
benefited the family.

Property Relations Between Husband and Wife

 Charges Upon the ACP.

3. Debts Contracted by ACP liable only to the

one Spouse Without extent that the debt
Consent of the other benefited the family.

Property Relations Between Husband and Wife

 Charges Upon the ACP.

4. Tax, Liens, Repairs on Includes both major and

Community Property minor repairs

Property Relations Between Husband and Wife

 Charges Upon the ACP.

5. Taxes and Expenses • Applies only to separate

for Mere preservation of properties by either spouse
being used by the family, not
Separate properties those that do not benefit the
family.
• Expenses limited to minor
repairs.

Property Relations Between Husband and Wife

 Charges Upon the ACP.

6. Expenses for
professional, Vocational,
or Self-Improvement
Course of Spouses

Property Relations Between Husband and Wife

 Charges Upon the ACP.

7. Ante-nuptial Debts • If the ante-nuptial debt

that Benefited the Family did not benefit the family,
applicable rule is (9).

Property Relations Between Husband and Wife

 Charges Upon the ACP.

8. Donations by Both • Purpose: professional,

Spouses to Common vocational courses or
Legitimate Children activities for self-
improvement

Property Relations Between Husband and Wife

 Charges Upon the ACP.
9. Ante-Nuptial Debts not
under (7), Support of
Illegitimate Children,
Liabilities of Either
Spouse Arising from
Crime or Quasi-Delict
Property Relations Between Husband and Wife
• Only the debtor-spouse has no
exclusive property or his or her
property is insufficient.
• The payments by the ACP are
deemed advances to be
deducted from the share of
the guilty spouse upon the
liquidation of the absolute
community.
 Charges Upon the ACP.

Gambling losses. • Gambling losses shall be

Art. 95, FC borne by the losing
spouse’ separate
property,
• winnings shall accrue to
the community property.

Property Relations Between Husband and Wife

 Administration, Ownership
and Disposition of ACP.
• Belongs to both spouses jointly. If
Administration of they disagree the husband’
decision prevails. However, the
property wife has five years from the date
of the decision to go to court for
recourse. Otherwise, it is
presumed that she agreed with
the husband’s decision. (Art. 96,
FC)

Property Relations Between Husband and Wife

 Administration, Ownership
and Disposition of ACP.
• When the other spouse is
Administration of incapacitated, or unable to
property, participate in the
administration (e.g. when
abroad). The powers refer
Exception: solely to administration;
disposition or encumbrance
requires consent of the absent
or incapacitated spouse.

Property Relations Between Husband and Wife

 Administration, Ownership
and Disposition of ACP.
In Homeowners Savings & Loan
Administration of Bank v. Dailo (2005)—
property
• In the absence of (court)
authority or written consent of
the other spouse, any disposition
or encumbrance of the conjugal
property shall be void.

Property Relations Between Husband and Wife

 Administration, Ownership
and Disposition of ACP.
Disposition of Property
Property Relations Between Husband and Wife
Either spouse may, through a
will, dispose his/her interest
in the community property.
(Art. 97, FC) However, the will
should refer only to his/her
own share in the community
property
 Administration, Ownership
and Disposition of ACP.
Donation of Property
Property Relations Between Husband and Wife
General Rule:
Donation of one spouse without the
consent
of the other is not allowed (Art. 98, FC)
Exceptions:
a. Moderate donations to charity due to
family rejoicing or distress;
b. Moderate gifts by each spouse to the
other due to family rejoicing.
 Dissolution of Absolute
Community Regime.
(1) Upon the death of either spouse
Article 99.
The absolute community
terminates:

Property Relations Between Husband and Wife

 Dissolution of Absolute
Community Regime.
(2) When there is a decree of legal
Article 99. separation
The absolute community
terminates:

Property Relations Between Husband and Wife

 Dissolution of Absolute
Community Regime.
(3) When the Marriage is annulled
Article 99. or declared void; or
The absolute community
terminates:

Property Relations Between Husband and Wife

 Dissolution of Absolute
Community Regime.
(4) In case of judicial separation of
Article 99. property during the marriage under
Articles 134 to 138
The absolute community
terminates:

Property Relations Between Husband and Wife

 Dissolution of Absolute
Community Regime.
The revival of the previous
marriage by the
reappearance of the
spouse judicially
presumptively dead and
the execution by him of an
affidavit of reappearance.

Property Relations Between Husband and Wife

 Dissolution of Absolute
Community Regime.
The spouse who leaves the conjugal
The following are the home with out just cause loses his or
effects of separation in fact her right to be supported
between the husband and
wife
Article 100:
Loss of support

Property Relations Between Husband and Wife

 Dissolution of Absolute
Community Regime.
When the consent of one spouse to
The following are the any transaction of the other is required
effects of separation in fact by law, judicial authorization shall be
between the husband and obtained in a summary proceeding.
wife
Article 100:
Judicial empowerment of
the spouse present

Property Relations Between Husband and Wife

 Dissolution of Absolute
Community Regime.
In the absence of sufficient community
The following are the effects property, the separate property of both
of separation in fact between spouses shall be solidarily liable for
the husband and wife the support of the family.
Article 100:
Solidary liability of the
spouses for support of the
family

Property Relations Between Husband and Wife

 Dissolution of Absolute
Community Regime.
Article 101 (1)
Remedies of aggrieved (a) Receivership – a remedy availed
of by one who has interest in a
spouse in case of property or fund which is in danger of
abandonment being lost, removed, or materially
injured whereby the court appoints a
person, called a receiver, “ to take and
keep possession of the property.
(b) Separation of property
(c) Sole administration of the
community property

Property Relations Between Husband and Wife

 Liquidation of the Absolute
Community Assets and
Liabilities.
Article 102.
Upon the dissolution of
the Absolute Property
regime, the following
procedure shall apply:
Property Relations Between Husband and Wife
1. An inventory shall be prepared,
listing separately all the
properties of the absolute
community and the exclusive
properties of each
2. The debts and obligations of the
absolute community shall be
paid out of its assets
 Liquidation of the Absolute
Community Assets and
Liabilities.
Article 102.
Upon the dissolution of
the Absolute Property
regime, the following
procedure shall apply:
Property Relations Between Husband and Wife
3. Whatever remains of the
exclusive properties of the
spouses shall thereafter be
delivered to each one of them.
4. The net remainder of the
properties of the absolute
community shall constitute its
net assets
 Liquidation of the Absolute
Community Assets and
Liabilities.
Article 102.
Upon the dissolution of
the Absolute Property
regime, the following
procedure shall apply:
Property Relations Between Husband and Wife
5. The net remainder of the properties of
the absolute community shall
constitute its net assets
6. Unless otherwise agreed upon by the
parties, in the partition of the
properties, the conjugal dwelling and
the lot on which it is situated shall be
adjudicated to the spouse with whom
majority of the common children
choose to remain
 Liquidation of the Absolute
Community Assets and
Liabilities.
Article 103 (1)
Remedy of the property Upon the termination of marriage by
upon the termination of death, the community property shall
marriage by death be liquidated in the same
proceeding for the settlement of the
estate of the deceased

Property Relations Between Husband and Wife