CATEGORY ABSOLUTE COMMUNITY OF PROPERTY CONJUGAL PARTNERSHIP OF GAINS SEPARATION OF PROPERTY

Definition Husband and wife become joint owners of all properties of the marriage Special type of partnership where husband and wife place in Each spouse shall own, dispose of, possess, administer and enjoy
a common fund proceeds, products, fruits and income from his or her own separate property, whether acquired prior to or
their separate properties and those acquired by either or during the marriage, without need of consent of the other.
both spouses through their efforts or by chance
When shall govern Marriages entered into on August 3, 1988 onwards: 1. Marriages entered into before August 3, 1988  Agreement in marriage settlement
1. Agreed upon in marriage settlement 2. Express agreement in marriage settlement  Previous marriage has been terminated by death of one
2. By default, when spouses did not execute marriage settlement spouses and subsequent marriage, without subjecting
3. By default, when marriage settlement is void ACP/CPG to liquidation within a period of 1 year from
death of spouse
 Finality of a decree of legal separation
 Court approves joint petition for voluntary dissolution of
ACP/ CPG
 Decree of separation of property:
o Spouse has been sentenced to a penalty which
carries with it civil interdiction
o Spouse was judicially declared an absentee
o Loss of parental authority has been decreed
o Spouse has abandoned or failed to comply with
obligations to the family
o Spouse abused grant of power of administration
in marriage settlement
o Separation in fact for at least 1 year and
reconciliation is highly improbable
Commencement Upon celebration of marriage. Any stipulation to the contrary in the marriage settlement is void.  Marriage settlement before marriage
 Judicial order
Prohibition on Waiver General rule: No waiver
of Rights, Interests,
Shares and Effects Exception: Judicial separation of property

Waiver takes place upon:

1. Judicial separation of property
2. After marriage has been dissolved or annulled

Formalities:
1. Public instrument & signed by parties
2. Registered in local civil registry where marriage contract is recorded
 3. Proper registries of property
Property covered All of the property owned by the spouses at the time of the celebration
of marriage or acquired thereafter.
1.
Exclusions to 1. Property acquired during marriage by gratuitous title, as well as
common property fruits and income thereof, unless stipulated by
donor/testator/grantor that such form part of community
property;
2. Personal and exclusive use of either spouse, except jewelry
which shall form part of community property;
3. Property acquired before the marriage by either spouse who has
legitimate descendants by former marriage, as well as fruits and
income thereof; and
4. Properties excluded by virtue of stipulation in marriage
settlement, as long as within the limits of FC
Property Acquisition Presumed to belong to community property, unless proved otherwise
During Marriage
Proceeds, products, fruits and income from separate The following are separate properties of the spouses:
properties, and those acquired by efforts or by chance  Properties acquired before and during marriage
 All earnings from profession, business, or industry
Conjugal Partnership (Section 3)  All fruits, natural, civil, or industrial
 Acquired by onerous title during marriage at the
expense of common fund Separation of property may refer to present or future property or
 Labor, work, industry or profession of spouses both. It may be partial or total.
 Fruits, natural, industrial, or civil, due or received  Partial – property not agreed upon shall pertain to
during the marriage from common property absolute community
 Net fruits from exclusive properties of each spouse
 Share in hidden treasure
 Acquired through occupation such as fishing or
hunting
 Livestock existing upon the dissolution of
partnership in excess of the number of each kind
brought to the marriage by either spouse
 Winnings from games of chance
1. Those brought to marriage as his or her own N/A – no common property. For partial agreement, those not
2. Those acquired during marriage through gratuitous agreed upon shall follow ACP.
title
3. Those acquired by right of redemption, barter, or
exchange with property belonging to only one of
the spouses
4. Those purchased with exclusive money of husband
or wife
5.
Presumed to belong to conjugal, unless proved otherwise To each spouse shall belong all earnings from her profession,
 Onerous donations – remains exclusive property; business, or industry and all fruits, natural, industrial or civil, due
amount of charges to be borne by exclusive or received during the marriage from his or her separate
property of donee-spouse when advanced by the property.
conjugal partnership
 Retirement benefits, pensions, annuities, gratuities,
usufructs and similar benefits – conjugal
partnership
  Bought on installments
o Paid partly exclusive, partly conjugal –
exclusive if ownership vested before
marriage; conjugal if ownership vested
during marriage
 Amount/credit payable belonging to one of the
spouses
o Sums collected during marriage in
installments – exclusive property of spouse
o Interests – conjugal
 Ownership of improvements made on separate
property at the expense of the partnership or
through acts or efforts of either or both spouses:
o Cost of improvement made by conjugal
partnership + any resulting increase in
value more than value of property at the
time of improvement – entire property
shall be conjugal, subject to
reimbursement of value at the time of
improvement to owner-spouse
o As above, but less than – exclusive
property, subject to reimbursement of
conjugal partnership or other spouse
o Ownership shall vest only upon
reimbursement
Sale or Exchange of  By stipulation – proceeds shall form part of the community  Proceeds shall not form part of conjugal property  Separate property
Separate Properties property
 By default (FC) – proceeds shall follow the property - exclusive
Charges Upon and Absolute community shall be liable for: Conjugal partnership shall be liable for: Both spouses shall bear family expenses in proportion to their
Obligations 1. Support – spouses, common children, and legitimate children of 1. Support – spouses, common children, and income. In case of insufficiency, to the current market value of
either spouses legitimate children of either spouses their separate properties.
*illegitimate children – *illegitimate children – exclusive property
exclusive property 2. Debts and obligations contracted during marriage: Liabilities of spouses to creditors for family expenses shall be
2. Debts and obligations contracted during marriage: a. By designated administrator-spouse for solidary.
a. By designated administrator-spouse for benefit of benefit of conjugal partnership
community b. Both spouses
b. Both spouses c. One spouse with consent of the other
 c. One spouse with consent of the other
3. Debts and obligations contracted by either spouse without
consent of the other to the extent that family may have been
benefited
4. Taxes, liens, charges and expenses, including major and minor
repairs, of community property
5. Taxes and expenses for preservation made during marriage
upon separate property of spouse used by family
6. Expenses to enable either spouse for professional or vocational
course, or other activity for self-improvement
7. Antenuptial debts of either spouse that redounded to benefit of
the family
8. Value of what is donated or promised by both spouses in favor
of their common legitimate children for professional or
vocational course, or other activity for self-improvement
9. The following shall be considered advances to be deducted from
share of the debtor-spouse upon liquidation of community in
the insufficiency of exclusive property of spouses:
a. Antenuptial debts other than those in (7)
b. Support of illegitimate children
c. Liabilities incurred by spouse/s by reason of crime of
quasi-delict
10. Expenses of litigation between spouses unless suit is groundless
Insufficient community property – spouses shall be solidarily liable for
unpaid balance with their separate properties
Game of chance/  Losses – borne by the loser spouse
betting/  Winnings – form part of common property
sweepstakes/ any
form of gambling
Ownership, Community Property
Administration,  Belong to both spouses jointly.
Enjoyment and  Disagreements – husband shall prevail with recourse to court by
Disposition of wife for proper remedy, within 5 years from date of contract
Properties implementing such decision
3. Debts and obligations contracted by either spouse
without consent of the other to the extent that the
family may have been benefited
4. Taxes, liens, charges and expenses, including major
and minor repairs, of conjugal partnership property
5. Taxes and expenses for mere preservation made
during marriage upon separate property of either
spouse
6. Expenses to enable either spouse for professional
or vocational course, or other activity for self-
improvement
7. Antenuptial debts of either spouse insofar as they
have redounded to the benefit of the family
8. Value of what is donated or promised by both
spouses in favor of their common legitimate
children for professional or vocational course, or
other activity for self-improvement
9. Expenses of litigation between spouses unless suit
is found to be groundless
10. Personal debts contracted by spouses before or
during marriage that redounded to the benefit of
the family
a. Spouse with insufficient exclusive property
– shall be borne by the conjugal
partnership but is charged for what has
been paid for upon liquidation
Insufficient community property – spouses shall be solidarily
liable for unpaid balance with their separate properties
Separate property
Exclusive Property Each spouse shall own, dispose of, possess, administer, and enjoy
 Retained by spouse/s his or her own estate without the need of the consent of the
 Transfer of administration to other spouse – public other.
instrument and record in registry of property of
place where property is located
  One spouse is incapacitated – other spouse may assume sole
powers of administration Administration of Conjugal Partnership Property (Section 5)
o Powers of disposition or encumbrance – only valid with  Belong to both spouses jointly
authority of the court or written consent of other o Disagreements – husband shall prevail with
spouse recourse to court by wife for proper
- Either spouse may dispose by will of his or her interest in the remedy within 5 years from date of
community property contract implementing such decision
- Donation o One spouse is incapacitated – other spouse
 General rule: cannot donate any community property without may assume sole powers of administration
consent of other spouse  Powers of disposition or
 Exception: moderate donations on occasions of family rejoicing encumbrance - only valid with
or distress authority of the court or written
consent of other spouse
 Donation
o General rule: cannot donate any
community property without consent of
other spouse
o Exception: moderate donations on
occasions of family rejoicing or distress
Dissolution Absolute Community/Conjugal Partnership terminates: N/A – no common property, unless partial – ACP follows.
 Death of either spouse
 Decree of legal separation
 Annulment or nullity of marriage
 Judicial separation of property (Art. 134 to 138)
Separation in Fact General rule: does not affect community property
Exceptions:
 Spouse who leaves conjugal home without just cause – no right to be supported
 Consent of one spouse is required by law – judicial authorization shall be obtained in a summary proceeding
 Absence of sufficient community property – separate properties of spouses shall be solidarily liable for support of family
Abandonment/Failure Aggrieved spouse may petition court for:
to Comply with 1. Receivership;
Obligations to the 2. Judicial separation of property; or
Family 3. Authority to be the sole administrator of absolute community/conjugal partnership
A spouse is deemed to have abandoned the other:
 Left the conjugal dwelling without any intention of returning – prima facie evidence is absence of 3 months and without any
news as to his whereabouts
Liquidation Upon dissolution, the following procedures shall apply: Upon dissolution, the following procedures shall apply: N/A – no common property, unless partial – ACP follows.
 1. Inventory – community and exclusive properties 1. Inventory – conjugal and exclusive
2. Debts and obligations of community shall be paid out of its 2. Amounts advanced by conjugal partnership for
assets. In case of insufficiency, spouses shall be solidarily liable personal debts – credit to the conjugal partnership
for unpaid balance as asset
3. Exclusive property to be delivered to spouses – remaining 3. Spouses shall be reimbursed for use of his or her
4. Net remainder of community property exclusive property to which ownership was vested
a. GR: divide equally by law in the conjugal partnership
b. Exceptions: 4. Debts and obligations of conjugal partnership shall
i. Marriage settlement be paid out of its conjugal assets
ii. Voluntary waiver 5. Exclusive property to be delivered to spouses –
5. Presumptive legitimes of common children shall be delivered remaining
6. Partition of properties, conjugal dwelling, and lot to which it is 6. Loss or deterioration of movables used for the
situated benefit of family unless already indemnified
a. GR: spouse with whom majority of common children 7. Net remainder of the conjugal partnership of
choose to remain properties
b. ER: a. GR: divide equally
i. marriage settlement b. Exceptions:
ii. children under 7 years – mother, unless court i. Marriage settlement
decides otherwise ii. Voluntary waiver
iii. no majority -court decides 8. Presumptive legitimes of common children shall be
delivered
9. Partition of properties, conjugal dwelling, and lot to
which it is situated
a. GR: spouse with whom majority of
common children choose to remain
b. ER:
i. marriage settlement
ii. children under 7 years – mother,
unless court decides otherwise
iii. no majority -court decides
Termination of  Absolute Community/ Conjugal property shall be liquidated in the same proceeding for settlement of the estate of the deceased
Marriage by Death  No judicial settlement proceeding – surviving spouse to liquidate absolute community/ conjugal partnership within 1 year from
death of deceased spouse
o if lapsed, any disposition or encumbrance shall be void
Subsequent Marriage  Mandatory regime of complete separation of property shall govern if without compliance to provisions on termination of
upon Death of Spouse marriage by death