Semi-finals - Persons And Family Relations

Semi-Finals for Persons and Family Relations

Memory Aid for Persons and Family Relations Article 68-73: Essential Marital Obligations

DUTY OF THE SPOUSES

a.

The husband and wife are obliged to live together, observe mutual love, respect and fidelity and render mutual help and support. -

b. c.

d. e.

f.

If one of the spouse does not want to live together with the other, the law cannot compel him/her. Nevertheless, the abandoned spouse is not left without any remedy since the spouse who left the conjugal dwelling is not anymore entitled to support from the present spouse. On the other hand, the present spouse can still demand support from the spouse who does not want to live together with him/her.

The husband and wife shall fix the family domicile; in case of disagreement, the court shall decide. The spouses are jointly responsible for the support of the family. Expenses where to take out: (Priority Order) 1. Shall be taken out from the conjugal property. 2. In the absence thereof, from the income and fruits of their separate properties. 3. In case of insufficiency, it shall be satisfied from their separate properties.

After August 3, 1988: The default property regime is the Absolute Community Property Regime.

The management of the household shall be the right and duty of both spouses. The aggrieved party may apply to the court for relief, when one of the spouse neglects his/her duties or commits acts which tends to endanger, dishonor or injury to the other or to the family. Either spouses may exercise any legitimate profession, occupation, business or activity without the consent of the other. The other may only object on valid, serious and moral grounds.

Before August 3, 1988: The default property regime is the Conjugal Partnership of Gains.

In case of Disagreements: The court shall decide:

 Whether or not the objection is proper For Liabilities w/out consent from the other spouse:

 If benefit has accrued to the family prior to the

Article 74-77: Marriage Settlement



objection: - The resulting obligation shall be enforced against the community property  If the benefits accrued after the objection - The obligation shall be enforced against the separate property of the spouse who has not obtained consent.

Marriage Settlement a.k.a. Prenuptial Agreement -

This is an agreement entered into by parties about to be married for the purpose of fixing the terms and conditions of their property relations during the marriage. This is governed by the law on contracts provided that any stipulations therein are not contrary to law, morals, good customs, public order or public policy.

-

MARRIAGE SETTLEMENT

Property Relation that will govern the Married Couple a. Marriage settlements executed before the marriage b. Provision of the Family Code: Absolute Community of Property Regime c. Local Customs -

1

This will only apply if there is a marriage settlement yet the spouses only stated therein that they do not want to be governed by the Absolute Community Regime.

-

 Article 66 and 67 refers to the revival of the former

A local custom can be a source of right provided that such custom is properly established in a court of justice by competence evidence like any other facts.

property regime due to reconciliation of spouses after a legal separation.  Article 128, 135 and 136 refers to separation of properties during the marriage with proper intervention of the court.

Different Property Regime that Parties may use:

Voluntary Separation of Property

 -

Absolute Community of Property

-



Conjugal Partnership of Gains

 

If a spouse without just cause abandons the other or fails to comply with his or her obligations to the family, the aggrieved spouse may petition to the court the judicial separation of property. At all instance, there must be court approval of the change of property regime during the marriage, whether it is for a cause or without a cause. The requirement of writing is mandatory, not only for the purpose of enforceability but more importantly for validity. The burden of proof in the invalidity of the marriage settlement lies with the spouse who is alleging it.

What NOT to stipulate in a Marriage Settlement: 1. Property regime will start at a time other than the precise moment of celebration of marriage. 2. Substantial donations to each other. 3. The surviving spouse executes a marriage settlement other than complete separation of property in a subsequent marriage where properties of previous marriage has not yet been liquidated.

Complete Separation of Property Regime

The parties may also enter into a modified regime or a combination of any of the regimes provided that the terms and conditions are not contrary to law, morals, good customs, public order and public policy.

What will happen if the surviving spouse did not liquidate the properties and he/she subsequently contracted a second marriage?

How to create a Marriage Settlement: a. It must be in writing. b. It must be signed by the parties. c. It must be executed before the celebration of the marriage. d. In order to bind third persons, it must be registered in the Office of the Local Civil Registrar where the marriage contract is recorded and in the Registry of Deeds. -

Involuntary Separation of Property



Regime

The spouses jointly filed a petition in court asking for the dissolution of the absolute community or any property regime and for the separation of their common properties.

-

-

The subsequent marriage will automatically be governed by the Complete Separation of Property Regime and any marriage settlement executed therein is considered invalid for it is contrary to law. This is to protect the interest of the descendants of the previous marriage.

Article 78-79: Persons who must give consent

If not registered, third persons who deal with either or both spouses have the right to presume that they are governed by the absolute community of property regime.

Modification in the Marriage Settlement:  Changes to the marriage settlement must be in writing and made before the marriage. Article 78 is no longer applicable due R.A. 6809 which lowered the majority age from 21 to 18 years old, thus there are no more minors considered to be capacitated to marry and therefore, renders Article 78 inapplicable.

General Rule: The Marriage Settlement can no longer be modified during the marriage. Except: Those instances provided by Articles 66, 67, 128, 135 and 136 of the Family Code.

2

Essential Elements:

a. It is a donation made before the celebration of the marriage. b. It is made in consideration of the marriage. c. It is made in favor of either or both parties to the marriage. Requisites for Donation Propter Nuptias:

1. Valid marriage settlements 2. A property regime other than the absolute community of property 3. Donation must not be more than 1/5 of his/her present property. The excess is void. 4. Donation must be accepted by the would-bespouse. 5. The donation must comply with Title III of Book III of the Civil Code.

When a party of the marriage is suffering from civil interdiction or other disability:  It is necessary that his/her legal guardian appointed by a competent court, will also sign the marriage settlement to make it valid. Article 80: Law governing Marriage Settlement



General Rule: The marriage settlement is governed by Philippine Law if both parties are Filipinos, regardless of the place of the celebration of the marriage and their residence.  This is due to the nationality theory Exception: a. If both parties are aliens b. The issue involves the extrinsic validity of the contract entered into abroad and the property involved is also located in the country where the marriage settlement was executed.



General Rule: Everything stipulated in the settlements or contracts in consideration of a future marriage shall be considered void if the marriage does not take place. Except: Those stipulations in the marriage settlement which is not dependent on the celebration of the marriage shall still be considered valid even if the marriage did not push through.

Donations Propter Nuptias of properties subject to encumbrances shall be valid:  Whether the donee assumes the indebtedness or the donor promises to pay.  The property is subsequently foreclosed and auctioned sale:

DONATION PROPTER NUPTIAS Article 82-85: Donations Propter Nuptias



Donor: a. b. c.

If the donation is made in a separate Deed of Donation and incorporated in the marriage settlement, the “not more than 1/5 limitation” will not apply because the possibility of undue influence attendant in the negotiation of a marriage settlement is generally absent in an ordinary donation.

Requirements to be Valid: 1. A donation of an immovable property must be made in a public document to be valid. 2. Donation of a movable property may be done orally or in writing. 3. If the value of the personal property donated exceeds five thousand pesos (₱5,000), the donation and the acceptance shall be made in writing, otherwise, the donation shall be void.

Article 81: Effect of Non Celebration of Marriage

-

The reason why there is 1/5 limitation is that a marriage settlement is a contract and therefore a product of negotiation and during the negotiation the possibility of one party exerting pressure and undue influence on the other is a great which the law must try to limit.

Donations Propter Nuptias Donations by reason of marriage This is governed by ordinary donations hence, to be valid the donee must accept the donation personally or through an authorized person and that the acceptance must be made during the lifetime of the donor and the donor and donee.



Deficiency: the proceeds of the auction is lower than the unpaid balance The creditor in this case, cannot compel the donee for the deficiency since donations are not meant to be onerous. Excess: the proceeds of the auction is higher than the unpaid balance The excess should be given to the donee

Revocation of Donation Propter Nuptias: The revocation is at the discretion of the aggrieved donor and not by operation of law. (Under Article 765 of the Revised Civil Code) 1. If the donee should commit some acts against the person, the honor or the property of the donor or of his wife or children under his parental authority. 2. 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.

Spouse Prospective Spouse Third Person

No one is compelled to accept the generosity of another

3

3. 

If he unduly refuses him support when the donee is legally or morally bound to give support to the donor.

-

The spouses becomes co-owners of all the properties in an absolute community property regime so if there is no agreement as to what is going to be the sharing, then the presumption is it will be divided equally. Waivers: No waiver of rights, interest, shares and effects of the absolute community of property during the marriage can be made except in case of a judicial separation of property.

For the inconsistency between article 50 and Article 86 of the Family Code. The later provision will apply due to the Principle in Statutory Construction which states that “Statutes of Later Date Prevails”

Donation between husband and wife is prohibited:  The prohibition also applies to those who are living together as husband and wife without a valid marriage.  What the law prohibits is not only the giving of donation but also the grant of gratuitous advantage to the other spouse as in the case of usufruct.  The prohibition also applies to indirect donation

Waiver upon a judicial separation of property When the waiver is made upon judicial separation of property or after the marriage has been dissolved or annulled, the same shall appear in a public instrument and shall be recorded as provided in Article 77. The creditors of the spouse who made such waiver may petition the court to rescind the waiver to the extent of the amount sufficient to cover the amount of their credits.

Example: When the husband donates a property to the father of his wife, the donor’s wife is the sole heir of the donee, then the donation is covered by the prohibition since it is an indirect donation.

Article 91-92: What constitutes community property?

Matabuena vs. Cervantes 38 SCRA 284:

 

The reason for prohibiting husband and wife from donation to each other is because of the fear of undue influence, then there is more reason to prohibit those living together without a valid marriage as the possibility of undue influence is even greater. Either spouse may, however, donated to each other some gifts during the marriage provided it is considered as moderate gifts given on the occasion of any family rejoicing. People who may challenge the validity of the donation: The validity of the donation or transfer cannot be challenged by those who bore absolutely no relation to the parties at the time it occurred and had no right or interest inchoate, present, remote or otherwise, in the property in question at the time transfer occurred.

The Community property shall consist of all property owned by the spouses at the time of the celebration of the marriage or acquired thereafter, unless otherwise provided by the marriage settlement.

SYSTEM OF ABSOLUTE COMMUNITY Article 88-90: General Provisions for Absolute Community

Properties Excluded in the Community under Article 92:

The Absolute Community of Property Regime This is the default property regime in the Family Code for it is more in consonance with the traditional oneness of the Filipino Family. This regime will commence at the precise moment of the celebration of marriage and shall continue during the marriage; any stipulation that the absolute community shall commence over a year or two after the marriage is void. The provisions on co-ownership shall govern the spouses under the absolute community property regime. Effect:

1.

2.

Those acquired during the marriage by gratuitous title, including the fruits as well as the income thereof, unless it is expressly provided by the donor, testator or grantor that it shall form part of the community property. Those personal and exclusive use of either spouses. However, jewelries shall form part of the community property. “The car is likewise to be treated for the community because of its high value”

3.

4

Those acquired before the marriage by either spouse who has a legitimate descendant by a former marriage.

community property and to be deducted to the share of the spouse upon liquidation of the absolute community.

4. Those that are expressly excluded in the marriage settlement.



“The support of the illegitimate child, will depend on the capacity of the giver and the need of the recipient”

2.

All the debts and obligations contracted by the spouse designated as the administrator of the absolute community for the benefit of the family during the marriage.  If both spouses contracted the obligation or by one of the spouse with the consent of the other, then the liability will be charged to the community; whether or not it benefited the family. Debts and obligations contracted by either spouse without the consent of the other to the extent that the family may have been benefited. All taxes, liens, charges and expenses for major and minor repairs of community property are chargeable to the absolute community.  Taxes, liens and charges on the exclusive property of one spouse but is being used by the family can be charged to the community.

A previous marriage was declared void due to lack of a valid marriage license, the couple had a child. Subsequently, the husband remarried, will the properties of the husband part of the community property? 

The properties of the husband will be considered part of the community property of the subsequent marriage since the previous marriage was declared void on the absence of a formal requisite which is the lack of a valid license. In this case the child is considered illegitimate.

3. 4.



A previous marriage was declared void under article 36 of the Family Code, the couple had a child. Subsequently, the husband remarried, will the properties of the husband be part of the community property? 

No, since in this case, the previous marriage was declared void due to Article 36 which would not affect the legitimacy of the child, of the husband’s previous marriage. This situation falls under paragraph 3 of Article 92 of the Family Code.

5.

6.

Article 93:

Property acquired during the marriage is presumed to belong to the community, unless it is, proved that it is one of those excluded therefrom.

7.

8. 9. What if you inherited a parcel of land during the marriage, you sold the land and bought another property using the proceeds of the sale of an exclusive property. Will the property you bought using the proceeds of the exclusive property be considered still an exclusive property or will it form part of the community property? 

Expenses needed for the self-improvement of one spouse, by either commencing or completing a professional or vocational course is chargeable to the absolute community. Ante-nuptial debts of either spouse in so far as it redounded to the benefit of the family is chargeable to the community. The value of what is promised by both spouses in favor of their common children for the exclusive purpose of commencing or completing a course or vocational course for their children’s self-improvement. Expenses of litigation between spouses unless the suit is found to be groundless. A spouse who gambles or engages in any game of chance or betting shall bear the losses and he cannot charge it to the absolute community. However, if he wins, the winnings will become part of the community.

Three Personal Obligations that the community is compelled to pay subject as an advances of the spouse from the absolute community: a. Ante-nuptial debt which did not redound to the benefit of the family. b. Support of illegitimate children. c. Civil liability arising from the crime committed.

The property becomes community property since there is no law which states that a property bought from the proceeds of an exclusive property will still be considered an exclusive property. Furthermore, Article 93 of the Family Code states that properties acquired during the marriage is presumed to belong to the community, unless of course, it is proved that it is excluded therefrom.



Article 94: Obligations Chargeable to the Absolute Community

1.

Expenses for repair of the exclusive property is chargeable to the community only if it is a minor repair or those necessary for the preservation of the said property. If it is already a major repair, it has to be answered by the separate fund of the exclusive owner.

The support of the spouses, their common children and legitimate children of either spouse.

If the community property is insufficient to pay those foregoing liabilities, except those falling under par.9 of Article 94, the spouses shall be considered solidarily liable for the unpaid balance with their separate properties.

Article 96-98: Ownership, Administration, Enjoyment and Disposition of the Community Property

The husband and wife are co-owners of the absolute community property

-

The support of the illegitimate children shall be charged to the exclusive properties of the spouse concerned. However, if the exclusive property is insufficient, then it will be advanced to the

-

5

The administration and enjoyment of the community shall belong to both spouses jointly. In case of disagreements, the husband’s decision shall prevail, subject to the recourse of the court by

the wife for proper remedy, which must be availed within 5 years from the date of the contract implementing such decision. 

-

This provision only refers to acts of administration and not acts of ownership since ownership needs both consent otherwise it shall be considered void.



The sole administrator of the absolute community by one spouse does not include the powers to dispose of or encumber the community property without the consent or the authority of the other spouse or from the court. The sale is null and void. However, the transaction shall be construed as a continuing offer 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 or both offerors.



Article 99-100: Dissolution of Absolute Community Regime

Instances of the Termination of the Absolute Community 1. Death of either spouse 2. There is a decree of legal separation 3. The marriage is declared annulled or declared void 4. Judicial separation of property during the

marriage Effect of De Facto Separation: 1. This does not dissolve the community property. 2. The spouse who leaves the conjugal home without justifiable cause will not be entitled to support. 3. If the consent of the abandoning spouse is needed in a transaction involving a common property, judicial authorization may be obtained in a summary proceeding. 4. Lastly, abandoned spouse may petition the court for judicial authorization to administer or encumber any specific separate property of the other spouse so that the proceeds thereof as well as its fruits can be used to help defray the expenses in supporting the family.

PNB vs. Court of Appeals 153 SCRA 435

If the buyer of the property is in “good faith”, the sale could no longer be nullified by the wife. The only remedy of the wife is to compel the husband to account for the proceeds of the sale as it is part of the absolute community of property. This rule will apply only if the buyer is not aware that the seller is married as he merely relied on what appears in the title.



Under Article 173 of the Civil Code, a sale of common property by the husband without the consent of the wife is mere voidable and not void. The non-consenting spouse has a period of 10 years to annul the sale, otherwise the action to annul prescribes. The annulment of the sale does not only refer to the share of the unconsenting spouse but the entirety of the contract. 

This is to protect a spouse from the reckless and unreasonable act of generosity of the other spouse which may result to the diminution of the common property to the damage and prejudice of the said spouse. However, if the donation is merely a moderate gift given on occasion of family rejoicing or distress, or as charity, the donation is valid. Whether a donation is moderate or not depends upon the financial situation of the spouses and the absolute community of property regime.

Effect to the spouse who abandons the family without just cause or fails to comply with his/her obligations to the family: 1. Receivership 2. Judicial separation of property 3. Appointment as sole administrator of the absolute community

Villaranda vs. Villaranda, G.R. No. 153447, Feb. 23, 2004:

Under the Civil Code, the consent of the wife to the sale of the conjugal property by her husband is required only if the said conjugal property was acquired after the effectivity of the Civil Code. If it was acquired before the effectivity of the Civil Code, consent of the wife is not required.

Either spouse may dispose by will of his/her interest in the community property

-

This is allowed because the disposition in a will does not take effect during the marriage but only upon death of the party disposing. However, considering that the absolute community is a co-ownership, the spouse can only dispose of his/her interest in the community property and not in a specific property.

Abando nment This implies a departure by one spouse with the avowed intent never to return, followed by a prolong absence without just cause. The spouse left the conjugal dwelling for a period of 3 months or has failed within the same period to

A spouse cannot donate to a third person a community property without the consent of the other spouse

6

give any information as to his or her whereabouts shall be prima facie presumed to have no intention of returning to the conjugal dwelling.

children. Thus, the surviving spouse cannot sell an absolute community property except with the consent and conformity of the children.

Article 102-104: Liquidation of the Absolute Community Assets and Liabilities

CONJUGAL PARTNERSHIP OF GAINS

Procedure for the Dissolution of the Absolute Community Regime: 1. Inventory shall be prepared:  Lists separately all the properties belonging to the community and the exclusive properties of each spouse. 2. The debts and obligations of the absolute community shall be paid out of its assets  In case of insufficiency, the spouses shall be solidarily liable for the unpaid balance with their separate properties according to Article 94 3. The remaining exclusive properties of the spouse shall be delivered to each of them 4.

5.

6.

Article 105-108: General Provisions

This chapter on conjugal partnership of gains is only applicable if the parties to the marriage have agreed to be governed by it in the marriage settlement:

 This is only suppletory because the property relation of the spouses will be primarily governed by their marriage settlement.  This chapter will apply to those marriages who were solemnized before the effectivity of the Family Code without a marriage settlement.  General Rule: Only those properties acquired during the marriage through the efforts and industry of either spouses as well as the income or fruits of their exclusive properties that accrue during the marriage will the compromise the conjugal partnership.  Upon the dissolution of the marriage or the property relation: The net gains shall be divided between the spouses equally, unless there is a different ratio of sharing stated in the marriage settlement.  Article 88 and 89 shall apply to Conjugal Partnership of Gains: a. The conjugal partnership of gains shall commence at the precise moment of celebration of the marriage. It cannot commence at any time during the marriage. b. Spouses cannot waive their rights, interests, shares or effects in the conjugal partnership during the marriage except in case of judicial separation of property. c. In case a waiver is made which resulted to the judicial separation of property, the waiver must be made in a public document and duly recorded in accordance with Article 77. d. A creditor of the spouse may ask for the rescission of the waiver if it prejudices him.  The Rule on Partnership in the Civil Code shall apply to Conjugal Partnership of Gains: Any stipulation which excludes the partners from any share of the profits and losses of the partnership is void. Every partner must account to the partnership for any benefit and hold as trustee for any profits derived from the use of any partnership property.

The net remainder of the absolute community is composed of the net assets of the community:  The net asset shall be divided equally between husband and wife, unless a different proportion was agreed in the marriage settlement or there was a voluntary waiver of such share.  The net profit is the increase in value between the market value of the community property at the time of the celebration of the marriage and the market value at the time of its dissolution. The presumptive legitimes of the common children shall be delivered upon partition, in accordance with Article 51 The conjugal dwelling will be adjudicated to the spouse with whom the majority of common children choose to remain, unless otherwise agreed upon by the parties.  Children below 7 years old are deemed to have chosen the mother, unless the court will decide otherwise.  In case there is no such majority, the court shall decide taking into consideration the best interest of the said children.

Termination of the marriage by death: a. Upon death of one spouse, the community property shall be liquidated in the same proceeding for the settlement of the estate of the deceased. b. If no judicial settlement proceeding is instituted, the surviving spouse shall liquidate the community property either judicially or extra-judicially within one year from the death of the deceased spouse. 

c.



If after the lapse of 1 year, no liquidation is made, any disposition or encumbrance involving the community property of the terminated marriage shall be void.

If the surviving spouse contract a subsequent marriage without compliance with requirements of Article 101, the mandatory regime of complete separation shall govern the property relation of the subsequent marriage.

Article 109: Exclusive Property of Each Spouse

Marigsa vs. Macabuntoc, 17 Phil 107

Upon the death of a spouse, the absolute community which has been dissolved by death of one spouse evolves into a co-ownership of the surviving spouse and their common

7



The owner spouse can dispose, alienate or encumber his/her exclusive property without the consent of the spouse or administering spouse 

Properties owned by either spouse before the marriage.







Properties acquired during the marriage by gratuitous title.

If an exclusive property is involved in a litigation, only the owner spouse will litigate and need not include the other spouse  

Properties acquired by right of redemption, by barter or by exchange with property belonging to only one of the spouses.  Exclusive properties by either spouse that were mortgaged and foreclosed before the marriage but were redeemed during the marriage shall remain as an exclusive property, even if the money used to redeem it is a conjugal money.  In this case, the spouse concerned shall be considered as indebted to the conjugal partnership as the money used to the redemption shall be treated as advances of the spouse form the conjugal partnership.



Properties donated or left by will to either of the spouses during the marriage, shall pertain to the donee-spouse as his own exclusive property 

Properties purchased with the exclusive money of either spouse.  When a property is bought during the marriage the presumption is that it is conjugal. However, if the money used to buy such property is an exclusive fund of either one of the spouse, then the property shall be considered an exclusive property of the said spouse.









A spouse shall retain the ownership, enjoyment and administration of his/her exclusive properties

The donee spouse shall bear the cost in complying with the condition. Should the spouse have no sufficient funds to pay the cost of complying the condition, the conjugal partnership may advance the cost subject to reimbursement later on from the exclusive funds of the donee spouse.

Rule on retirement benefits, pensions, annuities, gratuities, usufruct and other similar benefits: 

RULES IN HANDLING THE EXCLUSIVE PROPERTIES IN A CONJUGAL PARTNERSHIP REGIME

In the absence of specific designation of shares, the spouses will own the donated property in equal shares. Should a spouse refuse to accept the donation, his/her share in the property donated pro indiviso shall go to the other spouse by way of accretion.

If the donation is subject to an onerous condition: 

Article 110-115: Ownership, Enjoyment and Administration of Exclusive Properties



This only applies if the properties litigated are all exclusive properties of one spouse. If the litigation of the properties also involves a conjugal property, the other spouse must be impleaded as party plaintiff.

Thus, if a wife files an action for ejectment to recover possession of her exclusive property being leased by a delinquent tenant, she alone must litigate. But, if she also demands payment of unpaid rentals that accrued during the marriage, the husband must be impleaded because the unpaid rentals are conjugal.





Even if the exclusive property of a spouse is under the administration of the other spouse, it does not preclude the owner spouse from selling or encumbering the property. The alienation would simply mean that the owner spouse is terminating the administration of the property by the other spouse. The proceeds of the sale shall only belong to the owner spouse.

If it is acquired gratuitously during the marriage then it is exclusive. If acquired onerously, then it is conjugal.

Article 116-120: Conjugal Partnership Property

General Rule: All properties acquired by either spouse during the marriage are presumed conjugal even if it is declared in the name of only one spouse.  This rule applies even if the spouses are already living separately.

Either spouse, during the marriage, may transfer the administration of his/her own exclusive property to the other spouse by means of a public instrument, which shall be recorded in the registry of property of the place where the property is located.

8

 However, for this rule to be applicable, it is a condition sine qua non that proof of its acquisition during the marriage is duly established.



Properties bought on installments before the marriage and paid partly by exclusive funds and partly by conjugal funds:  If the ownership was vested BEFORE the marriage: The property is an exclusive property of one spouse and the payment thereof is considered as an advance by the owner-spouse from the conjugal partnership.  If the ownership was vested DURING the marriage: The property belongs to the conjugal partnership of both spouses, however, the spouse who originally purchased the property through installment is to be reimbursed by the conjugal partnership upon liquidation.

The presumption of law is in favor of conjugality, whoever claims that it is not conjugal has the burden of proving that is acquired using the exclusive money of a spouse or that is acquired gratuitously. Magallon vs. Mantejo, 146 SCRA 282

It has been held that an inscription in the Torrens Title of the owner’s name as “Marting Lacerna married to Epifania Magallon” is merely descriptive of the civil status of the owner and does not necessarily prove that the land is conjugal in the absence of proof that it was acquired during the marriage.

1.



CONJUGAL PARTNERSHIP PROPERTIES Properties acquired by onerous title during the marriage at the expense of the common fund, whether the acquisition is for partnership or for only one of the spouses Zulueta vs. Pan American World Airways, Inc 49 SCRA 1

The Supreme Court held that damages granted by the courts in favor of any of the spouses arising out of a contract sole financed by the conjugal partnership of gains and consequently unduly breached by a third party belongs to the conjugal partnership of gains.



Payment of a credit in favor to one spouse made during the marriage shall remain as an exclusive property of the spouse concerned.  The interest thereof which accrued during the marriage is conjugal as it is considered fruits of an exclusive property during the marriage

Lilius vs. Manila Railroad Co. 62 Phil 56

The Supreme Court said that if damages were awarded to one of the spouses as a result of physical injuries inflicted by a third person, as in the case of an injury resulting from an automobile accident which resulted to the disfigurement of the wife’s face, the damages awarded belong exclusively to the injured spouse.

2.

Those obtained through the labor, industry, work or profession of either spouse during the marriage

 The salary of the spouse  Fruits of exclusive rights, if it accrued during the marriage and the fruit is the net fruits. 3. 4. 5.

6. 7.

Effects if improvements are introduced to a land belonging to either spouse is taken from the conjugal partnership:

Share of either spouse in the hidden treasure which the law awards to the finder or owner of the property where the treasure is found. Those acquired through occupation such as fishing or hunting. Fruits, natural, industrial or civil, due or received during the marriage from the common property, as well as the net fruits from the exclusive property of each spouse. Livestock existing upon the dissolution of the partnership in excess of the number of each kind brought to the marriage by either spouse. Those acquired by chance, such winnings from gambling or betting. However, losses shall be borne exclusively by the loser-spouse.



If the improvement introduced and the resulting increase in the value are more than the value of the land at the time the improvement was introduced therein:

-



If the land has more value than the improvements introduced:

-





9

The land and the improvement made shall belong to the conjugal partnership, however, the spouse who originally owned the land shall be reimbursed of its cost upon liquidation of the conjugal partnership. The land and the improvement made upon it shall belong to the exclusive property of the spouse who originally owned the land. However, ownerspouse shall need to reimburse the conjugal partnership the cost of the improvements upon liquidation thereof.

Until reimbursement is made at the time of the liquidation, ownership is retained by the original owner. Thus, ownership of the land and the improvement shall be transferred only upon liquidation of the conjugal property. Contract of Sale: ownership is already vested to the buyer even if the property acquired is not yet fully paid. For Contract

to Sell: ownership of the property is only vested upon the

A surety agreement contract entered into by the husband in favor of his employer cannot, by itself, alone be categorized as falling within the context of “Obligation for the benefit of the family”. Thus, said obligation cannot be charged against the conjugal partnership.

buyer after fully payment thereof. Article 121- 123: Charges upon and Obligations of the Conjugal Partnership



Liabilities of the Conjugal Partnership:



 





Sps. Buado vs. Court of Appeals G.R. No. 145222

The wife’s civil liability arising from the crime of slander cannot be charged against the conjugal partnership as it did not definitely redound to the benefit of the family. The levy on execution on a conjugal partnership property to satisfy the said civil liability of the wife is not valid. Article 122 of the Family Code explicitly provides that payment of personal debts contracted by the husband or the wife before or during the marriage shall be charged to the conjugal partnership except insofar as they redound to the benefit of the family. The filing of third party claim by the husband to nullify the execution sale of the conjugal property is proper.

The charges and obligations of the conjugal partnership are the same as mentioned in Article 94 of the Family Code. The only difference is that paragraph 9 of Article 94 is not included in the Conjugal Partnership of Gains. If the conjugal partnership is insufficient to cover the liabilities, the spouses shall be solidarily liable for the unpaid balance with their separate properties. The payment of personal debts contracted by any of the spouse before or during the marriage shall not be charged to the conjugal partnership except in so far as they redounded to the benefit of the family. Neither does the fines and indemnities imposed upon them be charged to the partnership. The payment of personal debts contracted by the husband or the wife before or during the marriage shall not be charged to the conjugal partnership except in so far as it redounded to the benefit of the family.

Article 124-125: Administration of the Conjugal Partnership Property



The provisions of Articles 124 and 125 are very similar or identical to Articles 96 and 98 of the Family Code.



A period of 5 years is given to a spouse to institute a case questioning the validity of decisions made by the administrator-spouse of the conjugal properties

-

The personal obligations of a spouse mentioned in Article 94, par. 9 of the Family Code (support of an illegitimate children, anti-nuptial debts which did not redound to the family and fines and indemnities imposes upon a spouse for delicts and quasi-delicts committed) can be charged against the conjugal partnership if the spouse concerned does not have any exclusive property, provided that all liabilities mentioned in Article 121 are covered first.

Where a husband contracts a loan on behalf of the family business, the law presumes, and rightly so, that such obligation will redound to the benefit of the conjugal partnership.

This actions falls within the rules on summary procedure pursuant to Title XI, Article 238-253 of the Family Code.

Sale without knowledge and consent

-

If one the spouse sells a conjugal property without the knowledge and consent of the other, such sale is VOID. The action to nullify the sale does not prescribe.

The conjugal partnership is liable for all obligations contracted by the husband and wife. Thus, when the said obligations becomes due, the conjugal partnership shall be answerable for it and not the husband and the wife individually. It is therefore an error to consider the husband and wife solidarily liable, as it is the conjugal partnership and not the individual spouses who should answer for it.

Sale with knowledge but without approval

If the conjugal partnership fund is insufficient to pay the obligation, the spouses shall be solidarily liable for the unpaid balance with their separate properties.



Ayala Investment & Development Corp. vs. Court of Appeals, G.R. No. 118305, Feb. 12, 1998

10

If one the spouse sells a conjugal property with the knowledge but without the approval of the other, such sale is ANNULABLE at the instance of the aggrieved spouse, who is given 5 years from the date of the contract implementing the decision to institute the case.



b. c.

Fuentes vs. Roa G.R. No. 178902, April 21, 2010

If the sale, without the consent of the wife, was made on January 11, 1989, after the effectivity of the Family Code, the sale is still void even if the parties were married in 1950. The buyer, however, may recover the amount they paid to the seller with legal interest until fully paid and to be entitled to indemnity with a right of retention until the reimbursement is made.



Demand for judicial separation of property Petition the court for authority to act as sole administrator of the conjugal partnership

Article 129-133: Liquidation of the Conjugal Partnership Assets and Liabilities



This procedure in the liquidation of the conjugal partnership regime is the same as that of the absolute community property regime.

Melania Roxas vs. Court of Appeals, G.R. No. 92245

The husband-administrator cannot lease a conjugal property without the consent of the wife. This is because lease is an encumbrance on the property as the lessor transfers his right to use the property in favor of the lessee. The lessor’s right is impaired therein. He may even be rejected by the lessee if the lessor uses the leased premises. Therefore, lease is a burden on the land. Moreover, the lease is not only an encumbrance but also a “qualified alienation” with the lessee becoming, for all intents and purposes and subject to its terms, the of the thing affected by the lease.

SEPARATION OF PROPERTY OF THE SPOUSES AND ADMINISTRATION OF COMMON PROPERTY BY ONE SPOUSE DURING THE MARRIAGE Article 134: Judicial separation of property during the marriage

General Rule: The regime of separation if property can only govern if the husband and wife have entered into a marriage settlement and it is the property regime they have agreed upon in their pre-nuptial agreement.

Article 126-128: Dissolution of Conjugal Partnership Regime Article 135: Grounds for Judicial Separation of Property TERMINATION OF CONJUGAL PARTNERSHIP

1.

Sufficient Cause for Judicial Separation of Property:

Death of either spouse

1.

 1/2 of the conjugal properties will go to the surviving spouse while the other ½ will form part of the estate of the deceased spouse and the same will be transmitted to his heirs.  The death of a spouse will result to a co-ownership between the surviving spouse and their children. 2.

3.

2. 3.

When there is a decree of legal separation

4.

 The conjugal partnership is terminated by express provision of the law.

5.

When the marriage is annulled or declared void

The conjugal partnership is dissolved as there is no more marriage to speak of and when the marriage is terminated, the conjugal partnership is also terminated. 4.

6.

The spouse of the petitioner has been sentenced to a penalty which carries with it civil interdiction. The spouse of the petitioner has been judicially declared an absentee. The loss of parental authority of the spouse of the petitioner has been decreed by the court. The spouse of the petitioner has abandoned the latter or failed to comply his/her obligations with the family. The spouse who has been granted with the power of administration in the marriage settlement has abused the power. At the time of the petition, the spouses has been separated in fact for at least 1 year and reconciliation is high improbable.

When there is a judicial separation of property during the marriage

This is another instance where the conjugal partnership is terminated when there is still a subsisting valid marriage. 

A separation in fact between the husband and wife does not affect the regime of conjugal partnership.

a.

The spouse who left the conjugal dwelling without just cause will no longer be entitled to support from the abandoned spouse. If the consent of the abandoning spouse is needed in any transaction involving conjugal properties, the present spouse may ask judicial authorization in a summary proceeding. The present may sell or encumber an exclusive property of the abandoning spouse, with prior judicial authorization, to answer for his/her share in the solidary obligation to support the family. In case of insufficiency of the conjugal partnership, the exclusive property of the spouses is solidarily liable for the support of the family.

CONSEQUENCES OF A DE FACTO SEPARATION

b.

c.

d.

For the first three grounds mentioned in Article 135, it is enough for the petitioner to attach the final the final judgment of the court declaring a spouse under civil interdiction, being an absentee, or having lost his parental authority. The final judgment of the court in these first three grounds will be sufficient basis for the court to grant the petition.



REMEDIES OF THE PRESENT SPOUSE DUE TO ABANDONMENT

a.

Petition the court for receivership

11

When any of the grounds exists, the aggrieved party may file in court asking for the dissolution of their existing property regime. There is no need for the conformity of the other party

as the petitioner must have to establish the grounds in court. Once the court grants the petition, the existing property regime that governs them will be considered dissolved and they will now be governed by the regime of separation of property during their marriage. When the separation of property is based on the ground enumerated on Article 135 and the said grounds no longer exists:

Article 136: Voluntary Separation of Property



The spouses may jointly file a verified petition in court for the dissolution of their property regime



The petition for separation of property as well as the final judgment of the court granting it shall be recorded in the proper local civil registries and the registry of property in order to bind third persons. However, the separation of property shall not prejudice the rights of the creditors acquired previous to the marriage.



All creditors of the community and the conjugal partnership of gains, as well as the personal creditors of the spouses shall be listed in the petition and notified of the filing thereof.



 The parties must file a joint motion with the court that issued the judgment for separation of property praying that a decree for revival of the former property regime be issued.  The separation of property under Article 135 may be availed of many times for as long as there exists a ground.

Even without any grounds, the husband and wife may dissolve their conjugal partnership or absolute community by mutual agreement. Once the court grants the petition, the parties will then be governed by the regime of separation of property.

When the separation of property is based upon mutual agreement of the parties:

 A revival of the former property regime is allowed.  However, once granted, the parties could no longer go back to separation of property by mutual agreement because voluntary separation of property may be availed on only once.

The court shall take measures to protect the creditors and other persons with pecuniary interests.

Article 137-140: Effects of the Decree of Separation of Property

Article 142: Administration of Exclusive Properties

General Rule: The administration of the exclusive property shall belong to the owner-spouse. Except: If any of the following grounds exists: a. The owner-spouse is placed under guardianship of the other spouse. b. The owner-spouse is declared an absentee. c. The owner-spouse has been sentenced to a penalty which carries with it civil interdiction. d. The owner-spouse becomes a fugitive from justice or is hiding as an accuse in a criminal case.  In this case, the other spouse may be appointed by the court as the administrator of the exclusive property of the said spouse.  In the event that that other spouse is not qualified to assume administration due to incompetence, conflict of interest, or any other cause, the court shall appoint a suitable person to be the administrator.

Once the court decrees the separation of property, whether based on sufficient causes under Article 135 or upon mutual agreement by the spouses under Article 136, there will be dissolution of the absolute community or the conjugal partnership as the case may be and consequently, the liquidation of the absolute community or the conjugal partnership will take place as a matter of course. While the proceeding for the Judicial Separation is ongoing:

 The support of the children and the spouses shall be taken from the absolute community or conjugal partnership. The court grants the separation of property:

REGIME OF SEPARATION OF PROPERTY

 There will no longer be any absolute community or conjugal partnership, so support of the children shall be taken from the separate or exclusive property of both spouses in proportion to their income pursuant to Article 146 of the Family Code. 

Article 143-146: Separation of Property

The petition for separation of property as well as the final judgment of the court granting it shall be recorded in the proper local civil registries and the registry of property in order to bind third persons. However, the separation of property shall not prejudice the rights of the creditors acquired previous to the marriage.

-

Article 141: Revival of the Former Property Regime

12

Separation of Property Each spouse shall own, administer, use and enjoy his or her exclusive property to the exclusion of the other. Each spouse can sell, dispose or encumber his exclusive property without the consent of the other spouse.

-

-

All income or earnings derived from his profession or business shall belong to him alone. As well as the fruits, natural, industrial or civil, received or earned during the marriage from the exclusive property of a spouse shall belong to the spouse concerned. The separation can partial or total. In case of partial separation, the property not agreed upon as separate shall be governed by the absolute community of property regime.

e.



In the absence of proof to the contrary, the properties acquired while they lived together shall be presumed to have been obtained by their join efforts, work or industry and shall be owned by them in equal shares. A party who did not participate in the acquisition by 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.



Where will the expenses of the family be taken?  The separate properties of both spouse shall be answerable for it. Thus, both spouses shall bear the family expenses in proportion to their income.  In case of insufficiency or default thereof, the current market value of the exclusive property of each spouse shall be the basis of the proportionate contribution.

Article 148: In case of cohabitation not falling under Article 147::



Only the properties acquired by both parties through their actual joint contribution of money, property or industry shall be owned by them in equal proportion to their respective contribution. If one of the parties is validly married to another, his/her share in the co-ownership shall accrue to the absolute community or conjugal partnership existing in such valid marriage.

-

The liability of the spouse for the creditors of the family shall be solidary:  The creditors can demand payment of the entire obligation from the husband alone or from the wife alone.  The spouse who paid the whole obligation may later on demand be reimbursed by the other spouse.

his/her previous marriage before contracting a subsequent one. Void marriages because of absence of consent, authority of the solemnizing officer, absence of a valid marriage license or marriage ceremony.

-



In the absence of proof to the contrary, their contributions and corresponding shares are presumed to be equal. The same rule and presumption shall apply in joint deposits of money or evidences of credit.

Article 147-148: Property Regime of Union without Marriage

Termination of Cohabitation in case of bad faith by one party for Article 147 and 148:

a. b. -



Co-ownership This the property regime that will govern when a man and woman lived together as husband and wife without the benefit of marriage or under a void marriage.

c. 

Article 147: When a man and woman capacitated to marry, live exclusively with each as husband and wife or under a void marriage:

His or her share in the co-ownership shall forfeited in favor of their common children. In case of default or waiver of the common children, his/her share shall go to his surviving descendant. In the absence thereof, shall belong to the innocent party.

Valdes vs. RTC, 260 SCRA 221

A spouse who contracted a subsequent marriage without having his previous marriage judicially declared void is guilty not only of bigamy but also of violating Article 40, thus, his subsequent marriage is null and void. The spouse in bad faith in a void marriage under Article 40 shall forfeit only his share in the net profits of the community or the conjugal partnership in favor of the common children, or if there are none, the children of the guilty spouse by a previous marriage, or in default of children, the innocent spouse. This is because of the explicit provision of Article 43(2) in relation to Article 50 of the Family Code. However, if the marriage is void, not because of Article 40, the forfeiture of share shall be in accordance with Article 147 or 148, which provide that the guilty party shall forfeit not only his/her share in the net profits but all his or her shares in the co-ownership in favor of their common children or to the innocent spouse.

The full co-ownership will govern for everything acquired by either party onerously during their cohabitation. 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 full co-ownership rule. Consent of both parties is required in the disposition of any of the common properties. Neither party can encumber or dispose of by act inter vivos his/her share in the co-ownership without the consent of the other, until after the termination of their cohabitation. Void Marriages referred in Article 147: a. Void on the ground of Psychological Incapacity b. Void due to absence to legal capacity to marry c. Void due to both spouses acted in bad faith in declaring an absentee spouse presumptively dead. d. Void due to one spouse did not secure a judicial decree of annulment or nullity of marriage of -



Alain M. Diño vs. Ma. Caridad Diño, G.R. No. 178044

The void marriages under Article 36 of the Family Code is one of the void marriages referred to in Article 147 where coownership governs. It is an error for the trial court to order that a decree of absolute nullity of marriage shall be issued only after liquidation, partition and distribution of the parties’ properties. The ruling has no basis because Section 19(1) of the Rule does not apply to cases governed under Articles 147 and 148 of the Family Code. It is clear from Article 50 of the Family Code that Section 19(1) of the Rule applies only

13

to marriages declared void ab initio or annulled by final judgment under Articles 40 and 45 of the Family Code. In short, Article 50 of the Family Code does not apply to

marriages which should be declared void without waiting for liquidation of the properties of the parties.

14

***Nothing Follows***

“Frodo: I can't do this, Sam. Sam: I know. It's all wrong. By rights we shouldn't even be here. But we are. It's like in the great stories, Mr. Frodo. The ones that really mattered. Full of darkness and danger, they were. And sometimes you didn't want to know the end. Because how could the end be happy? How could the world go back to the way it was when so much bad had happened? But in the end, it's only a passing thing, this shadow. Even darkness must pass. A new day will come. And when the sun shines it will shine out the clearer. Those were the stories that stayed with you. That meant something, even if you were too small to understand why. But I think, Mr. Frodo, I do understand. I know now. Folk in those stories had lots of chances of turning back, only they didn't. They kept going. Because they were holding on to something. Frodo: What are we holding onto, Sam? Sam: That there's some good in this world, Mr. Frodo... and it's worth fighting for.” ― J.R.R. Tolkien, The Two Towers