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Quiao:
The following principles can thus be culled from Quiao:
(i). The definition of net profits in Article 102(4) of the Family Code
applies to both the absolute community regime and conjugal partnership regime
as provided for under Article 63, No. (2) of the Family Code, relative to the
provisions on legal separation.
(ii). The liquidation procedure for the absolute community property is
different from the liquidation procedure for the conjugal partnership of gains. Thus:
ABSOLUTE
COMMUNITY PROPERTY
Art. 102
CONJUGAL PARTNERSHIP
OF GAINS
Note:
The
exclusive
properties are included in the
inventory because said properties
shall be solidarily liable if the
community's
properties
are
insufficient to pay the community
debts.
(d)
The
net
remainder
of
the
absolute
community is its net assets, which
shall be divided between the
husband and the wife;
(iii). The separate properties of the husband and the wife are not subject to
forfeiture since they are not considered assets of the absolute community property of the
conjugal partnership of gains.
(iv). In determining the net profit subject of forfeiture, the following are
illustrative:
FOR ABSOLUTE COMMUNITY PROPERTY
In determining the net profits:
1.
Determine the market value of the properties at the time of the community's
dissolution.
2.
From the totality of the market value of all the properties, subtract the debts
and obligations of the absolute community
3.
The result to the net assets or net remainder of the properties of the absolute
community, from which we deduct the market value of the properties at the time of
marriage, which then results to the net profits.
In applying the above, let us assume the following:
a.
b. The parties brought properties the fair market value of which is P6Million
at the time of the celebration of the marriage.
c. The fair market value of the community properties at the time of
dissolution is worth P10M
d. The community debts and liabilities amount to P2M
Thus:
P10M (FMV of the properties at the time of dissolution)
minus
P2M (community debts and charges)
===================================
P8M (net remainder)
minus
P6M (FMV of the properties at the time of the celebration of the marriage)
======================================
P2M
divided by
2 ( to determine the share of the H and the W in the net profit)
===============
P1M share of the net profit of the wife
P1M share of the net profit of the husband
Since H is the guilty spouse, his P1M share in the net profit shall be forfeited in
favor of their common children.
Note 1: Since the parties brought properties at the time of the celebration of the
marriage, the fair market of those properties will be divided into two. Theoretically
therefore, the husband will still get P3M; the wife will get P4M.
Note 2: If the parties did not bring any property at the time of the celebration of
the marriage, then the net profits shall be determined as follows:
P10M (FMV of the properties at the time of dissolution)
minus
P2M (community debts and charges)
===================================
P8M (net remainder)
divided by
2 ( to determine the share of the H and the W in the net profit)
===============
P4M share of the net profit of the wife
P4M share of the net profit of the husband
In this case, following Quiao nothing is left to the H since both parties entered
into their marriage without bringing with them any property.
FOR CONJUGAL PARTNERSHIP OF GAINS
Let us assume the following:
a. The actual inventory conjugal properties is worth P10M;
b. The parties do not have any separate properties.
[1] Siochi vs. Gozon, G.R. No. 169900, March 18, 2010