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Art.

68 Enumerates the obligations between spouses

Right to live together / consortium


o
Failure result to abandonment,
Psychological Incapacity

Obligation of Mutual Love, Mutual Respect,


Mutual Fidelity

Mutual Help and Support


o
Obligation to take care of the family, to
pay
expenses,
administer
the
households
Remedy of a Spouse if failure to comply:

Ground for nullity of marriage


o
Inability of a spouse to perform marital
obligation (psychological incapacity)

In case of neglect/ either spouse commit any act


to bring danger or disorder to the family
o
Grave spouse may file to the court for
relief for any injunction to enjoin the
other from committing the act to bring
dishonor or injury or danger to the
family/ family member

When it involves dissipation of assets:


o
the aggrieved spouse may go to court
to ask for receivership - someone
appointed by the court to administer the
property of the spouses
o
the innocent spouses may ask the court
for an order authorizing her/him to be
the sole administrator of the conjugal or
community property

some may include criminal complaint against the


erring spouse like economic abuse, refusal of the
spouse to support the other violation of special
law (VAWC)

in case of violation of obligation to be faithful to


the other criminal action for adultery or
concubinage
*Obligation enumerated except Mutual Help and Support
aggrieved spouse may not go to court to compel the other
to comply (Love, Respect and Fidelity) personal and
voluntary in nature
*Refusal to support may constitute liability for contempt
or violation of VAWC criminal support

aggrieved spouse may also avail of civil action for


damages against the guilty spouse Art. 19, 20,
21 Abuse of Rights Principle
o
only if property is under regime of
complete separation of property

not community absurd to file


complaint where liability may
be charged to the common
property
Either spouse may exercise legitimate profession,
business, occupation or any activity even without the
consent of the other spouse

if not legitimate other spouse can always object


o
only on valid, serious and moral ground
What will happen if a spouse exercise an illegitimate
profession without the consent of the other?

Co-relate Art. 73 and Art. 94(3) of Family Code


73 obligation of a spouse in an exercise of illegitimate
profession

Distinguish when the benefit redounded to the


family
o
Before knowledge on the part of
objecting spouse no objection
exclusive obligation
o
Benefit after the objection has been
made charged against the common
property

Because of principle of Estoppel


despite objection spouse
continue to receive benefit
94(3) obligation of a spouse in an exercise of legitimate
profession the absolute community of property shall be
liable

To the extent that family may have been


benefited

In contrary, not require that their should be


actual benefit to the family, it is enough that
profession is exercised legitimately presumed to
the benefit of the family
o
Distinguish from Isolated Transaction
not prima facie intended for the family
(Ayala Investment Corp VS CA)
Where the husband who is a VP of acertain company
executed or acted as a guarantor to guarantee the
obligation obtained by his corporation. Where the
corporation failed to pay the loan, the creditor filed a case
against the company and the VP who acted as a
guarantor. The judgment was rendered in favor of the
creditor. The judgment became final and during the
execution, the common property was levied in execution
by the sheriff at the instance of the creditor. The wife of
the VP complained to the levy of execution, imposed on
the common property arguing that the obligation incurred
by the husband did not redound to the benefit of the
family. The creditor argued that the obligation incurred by
the husband arising from having acted as a guarantor has
redounded to the benefit of the family in the sense that
through the obligation guaranteed by the husband, the
financial position of the company was improved such that
when the company has eventually rehabilitated and the
company survives, the husband being the officer of the
corporation is guaranteed that his employment would also
continue. He is also guaranteed to be continued to be
given the supreme court holding that the benefit
contemplated under Article 94 (3) is a benefit which is
direct benefit and not an indirect or speculative benefit.
o
In an isolated transaction, benefit
contemplated by Law must be direct and
not remote for the common property to
be charged.

ART 74 Property Relations governed by the following:

Stipulations in the Marriage Settlement before


marriage

Provision of Family Code

Customs
Marriage
Settlement/Pre-nuptial
Agreement

stipulations involving property of the spouses

Is a Contract - It is an agreement of the party


about to be married stipulating the conditions
and terms of the property relations during the
existence of marriage

It is an agreement on how the property relations


should be administered and should be handled
while the marriage exist

There are property regimes that may govern the


spouses:
o
Absolute
Community
of
Property
Regimes
o
Conjugal Partnership of Gains
o
Complete
Separation
of
Property
Regimes
o
Any other Regimes (combination of 1 or
2 or 3)
*For marriage settlement to prejudice third party, it should
be registered on the local civil registrar where the
marriage contract is registered and to the registry of
property where the property involved situated

Creditors are always protected

Because if there is insufficiency of


exclusive property, he can go after the
community property
*Other than regime of Property, the spouses can also
stipulate Donations by reason of marriage
o

Donation by reason of marriage in relation to


ordinary donation should be in consideration of
marriage as distinguished from ordinary donation

Maybe executed by 3rd party in favor of either or


both of the would be spouses

Maybe executed by either of the would be spouse


in favor of the other would be spouse
Distinguish:
Donation by 3rd party and donation by the spouses

By 3rd party
o
Not required to execute a Marriage
Settlement
o
It cannot be incorporated in a Marriage
Settlement only the would be spouses
are parties Must be executed in a Deed
of Donation for the 3rd party.
o
Limitation of Not more that 1/5 of the
property does not apply - so donor
may donate more that 1/5

The limitation only is that he


has to leave behind something
for his survival and must leave
something
for
his/her
compulsory heirs
o
Not rendered void if the marriage does
not take place only revocable
Donation by a would be spouse in favor of the other would
be spouse distinguish further into 2:

Donation incorporated in the Marriage Settlement


o
Required to have a Marriage Settlement

Must
stipulate
a property
regime other than the absolute
community of property regime
absurd situation where the
donor will end up being the
donee
o
Prohibits the donor to donate more than
1/5 of property to the donee

To avoid danger of undue


influence over the other in the
course of the negotiation
o
Donation is VOID if marriage does not
take place. (ART 81)

Except those provisions that


have nothing to do with
marriage

Donation made in a separate Deed of Donation unilaterally


o
Must have a valid Marriage Settlement

If no Marriage Settlement, the


presumption is, it is governed
by the Absolute Community of
property regime
o
Must stipulate regime other than the
absolute property regime

If it is absolute community, the


donor ends up being a donee
o
Not more than 1/5 limitation does not
apply

it is made unilaterally

undue influence does not exist


since there is no negotiation
donation is made voluntarily
o
If marriage does not take place
donation is not void, it is only
REVOCABLE

Because it is not incorporated


in marriage settlement
It maybe revoked by the donor
under the conditions in Art. 86

Ordinary donation made during marriage


between spouses
o
Regardless of value, regardless of
regime VOID

To prevent undue influence


o
Sale what about sale? Family code is
SILENT

Only
under
the
complete
separation of property regime

Danger is not present

Transaction is onerous
The law does not prohibit spouses from
selling their exclusive property to the
other if the governing property regime is
the complete separation of property
regime.

Donation made by either spouse in favor of a third party,


Rule:

requires the consent of the other spouse

Not all donation of either spouse in favor of third


party are void
o
Law provide for exceptions that one
spouse may donate without the consent
of the other in favor of third party may
be valid

Moderate
donations
for
purposes of Charity

Moderate donation on occasion


of family rejoicing or family
distress

To be determine in a
case to case basis
depending
on
the
capacity of donor

Conflict of Law Rules on Property Relations


Art. 81 Regardless of location of the property, it is
governed by Philippine law. Except:

If spouses are both aliens

Extrinsic Validity of Contract involving a


property outside of Philippines contract
executed where the place the property is located
o
Apply Lex Rae Sitae Art 16 law of the
place where property is situated

Extrinsic validity of Contract executed in the


Philippines but affecting property located outside
of the Philippines or in a country which laws
requiring a different formality Apply Lex Rae
Sitae
Donations by reason of marriage may be revoked by
operation of Law

1st Rule the marriage does not take place. (ART


86)
o
REVOCABLE Except:

Incorporated in the Marriage


Settlement = VOID (ART 81)

No prescription

Made in Deed of Donation


REVOCABLE 5 years from
the time the cause of action
accrues

Time
marriage
suppose to take place

2nd Rule Marriage solemnized but declared void


by the court
o
If the ground for declaration of a void
marriage is a subsequent marriage and
the party failed to obtain a judicial
declaration of nullity of the void
marriage (Art. 40)

Donation is REVOKED by
operation of law (Art 43 par
3)
*Effect in 43 situation where subsequent marriage is
terminated by the result of reappearance of missing
spouse

by virtue of Art 50 expressly provide that effects


in Art 43 shall likewise apply to marriages
declared void by reason of Art. 40 and to
marriages annulled under Art. 45 - -Not 86 but
apply 43
o
If ground for the void marriage is that
both parties acted in bad faith and one
previously
obtain
a
court
order
declaration of presumptive death of
former spouse under Art 44

Donation
is
VOID
by
Operation of Law
Revoked at the instance of the Donor

If ground for the void marriage is other than Art.


40 and Art. 44 Any donation is REVOCABLE by
Art 86
GENERAL RULE: Donation by reason of marriage in case
of marriages declared void are REVOCABLE at the
instance of the donor
EXCEPT if it is void under Art 40 and Art 44
*In instances where the donation by reason of marriage is
only Revocable because the grounds of the declaration of
a marriage void is a ground other than 40 and 44 (IN BAD
FAITH), the bad faith of the donee is immaterial
*Art 43 for the deed of donation to be revoke by operation
of law, the donee must have acted in bad faith.
*Ground other than 40 and 44 donation by reason of
marriage is merely REVOCABLE regardless the donee
acted in good faith or bad faith

If ground of void is when one party failed to


comply with the parental consent
o
REVOCABLE upon knowledge
prescription must start from knowledge
(on or before marriage) Art 86

Instance where the donation by reason of


marriage is subject to a Resolutory Condition
donation takes effect during the marriage and is
extinguished when the condition is met,
distinguish from conditional obligation
obligation arises upon the happening of condition
o
RC Revoked at the instance of the
Donor

In case the Marriage is annulled under Art 45


o
Revocable at the instance of the
donor Art 86
o
Contradicts with Art 43 (3) in relation to
Art 50 of the family code Revoked by
operation of law
*Sta. Maria: Art 43 (3) in relation to Art 50 revoke by
operation of law if donee acted in bad faith more
consistent with intention of the law to punish the guilty
donee who acted in bad faith
*Monteclar: Art 86 effect not so serious revocation
does not come automatically but at the instance of the
donor later provision deemed to be later expression of
the legislative will apply the principle of statutory
construction.
CONFLICTING PROVISIONS!!!!!

When there is a decree of legal separation and


donee acted in bad faith Revocable at the
instance of the donor (ART 86)
Exeption:
o
If the donee is guilty of concubinage or
adultery is rendered VOID
by
operation of law by virtue of Art 739
of Civil Code

Absolute Community of Property Regime


When will it govern the property relation between spouses
during the marriage?

When parties stipulate in the Marriage Settlement

In instances where the parties did not execute a


Marriage Settlement before the solemnization of
the marriage

In case the Marriage Settlement is void


*commences at the very moment the marriage is
solemnized any stipulation of any other time, the
marriage is void
What is mine is yours, what is yours is mine
more consistent with Filipino Spouses
What constitute the absolute community property?

Whatever is owned by either spouse at the time


of the celebration of marriage and acquired
thereafter
Exclusions:

Contractual Exclusions properties agreed upon


by the parties in the marriage settlement to be
exclusive can cover any property

Statutory Exclusions expressly considered by


law as exclusive
o
Properties acquired from gratuitous
title DURING marriage by either spouse
including fruits and income

Except
if donor
expressly
provide that property shall form
part of the common property or
absolute community

Gratuitous Title may refer


to donation or succession
without consideration pure
liberality on the part of the
donor
*if during the marriage gratuitous title exclusive
*if before the marriage property owned by spouse
brought to marriage = common
Properties for personal and exclusive use
of either spouse = NAPKIN OF YOUR
WIFE (SHYARO DI KASABOT!)

Except Jewelry because of


its
value
is
considered
COMMON
o
Properties acquired before the marriage
of either spouse who has LEGITIMATE
descendants by former marriage and
including their fruits and income

Considered by law as an
exception
to
protect
the
descendants of the spouse by
the former marriage

Legitimate descendants not


limited to children and does not
include ascendants
*What happens if the property falling under contractual or
statutory exclusion is sold during the marriage under the
regime of absolute community of property? What is the
status of the proceeds of the sale? Or What will happen if
the contractual or statutory is exchanged to another
property (Barter or Exchange)?
*Under Family Code in Absolute Community Regime no
specific provision
o

According to Sta Maria: Proceeds under Absolute


Community Regime shall be common
Justification:

Falls under Property acquired during marriage

Any property not falling under Contractual and


Statutory exclusions shall be deemed common
Opposite View: Proceeds in exchange for exclusive
property does not necessarily become common.
Reason:

If it will become common, it would be easy to


circumvent statutory exclusions

To give justice, whatever received through


exchange of the exclusive property should also
be exclusive
*But according to Sta Maria this view have no support
in law
Reason:

If the owner want his property to be exclusive


then he must keep his property and not exchange
it with something else, the moment it transform
into another property (either by sale or exchange
or barter), the property becomes common.
Charges and Obligations upon the Absolute
Community Art 94

Support of spouses for their common children and


the legitimate children of either spouse

Debts and obligations incurred by the designated


administrator spouse or both spouses or by one
spouse with the consent of the other
o
If incurred with authority

Obligations incurred during the marriage by one


spouse without the consent of the other to
the extent that the family may have been
benefited
o
Only to the extent to the benefit
redounded to the family
o
Distinguish if the obligation is exercised
in the legitimate or isolated/illegitimate
profession

Legitimate no proof of actual


benefit
for
ABSOLUTE
COMMUNITY
OF
PROPERTY
liable

Presumed to be for the


benefit of the family

Isolated there must be proof

All taxes, liens, charges including major and


minor repairs upon common property

Expenses for mere preservation of exclusive


property of either spouse used by the family
o
If not used not chargeable

Expenses to enable either spouse to commence


or complete vocational or professional course or
any activity for self improvement

Ante nuptial debts redounded to the benefit of


the family
o
Obligation before marriage
o
If not redound for the benefit of the
family, NOT COVERED

Value promised to common legitimate children of


both spouses for profession or vocational or any
self improvement

Litigation expenses filed against the spouse


UNLESS the suit is found to be groundless
o
GROUNDLESS - court dismissed the case
in motu propio no need for a trial
kanang way rason nga file2x bah, bogo
au ug rason

Unless in good faith believing


he has ground

WITH GROUND right cause of action court tries the case regardless of the
result (acquitted or guilty)

Par. 9 debts and obligations against the debtor


spouse alone personal obligations, EXCLUSIVE
LIABILITIES OF THE SPOUSE ALONE
o
Support of illegitimate children of either
spouse
o
Ante nuptial debts which does not
redound to the benefit of the family
o
Obligation arising from crimes or quasidelict

Only so far as civil liability

Criminal liability to the spouse


only
*in cases of insufficiency of the exclusive
property of the debtor spouse
- creditor has the option to go after the
Absolute Community
Absolute Community bound under the law to
advance the amount to satisfy the liability of
either spouse in his/her personal capacity
-but is subject to reimbursement to
be deducted from his share upon dissolution of
the marriage ADVANCE REIMBURSEMENT
MECHANISM

*If the absolute community cannot satisfy the obligation


referring to 9 articles of Art 94 spouses shall be
SOLIDARILY LIABLE
- Solidary Liability obligation pertaining to
two or more person. Significance:
o
Creditor may recover liability either
against all of the debtor with respect to
their corresponding debt or against the
one who he thinks more capable to pay
the entire debt
o
Debtor who pays the full solidary liability
has the right to go after the other for
reimbursement
Ownership,
Administration,
Enjoyment
and
Disposition of the Absolute Community Property
RULE:
*distinguish situation where disposition or alienation of
property is done in a situation where (1) both parties
exercise joint administration and in a situation where (2)
only one is administering because the other is
incapacitated or unable to participate.
GENERAL RULE: Administration shall be jointly by the
spouse
First Situation Joint administration

One or either of the two dispose of or alienate a


common property
o
Status if done without the knowledge
and consent of the other = VOID

Husband sells the common property with


knowledge of wife but the wife objects = resulting
in disagreement
o
Result of the transaction = VOIDABLE

Wife may go to court 5 years


from the time the decision of
the husband is implemented
*law is in favor of the husband in case of
disagreement but the wife has remedy
to go to court
-Court can
determine the
propriety, validity and the necessity of
the disposition
-if disposition is prejudicial to
the interest of the community the
court can enjoin the disposition

-General
Rule:
Husband
Decides

Wife dispose of property with knowledge of the


Husband who objects = resulting in disagreement
o
Transaction is UNENFORCIABLE (under
1317)

A contract entered into without


authority cannot be enforced
o
Husband can go to court to ask for
injunction to prohibit the wife from
enforcing the contract
o
Or He can ask for the nullification of the
transaction because it is done contrary
to law and public policy
*wife inferior to the husband acknowledged by law
Second Situation: Only one is administering
-other spouse is incapacitated or unable to administer the
absolute community property

RULE: If the one administering the property


disposes, sells or alienates the property without
the knowledge or without approval of the court =
transaction is VOID
o
But the transaction is considered as
continuing offer on the part of
consenting spouse and the third party
o
It maybe rectified by the eventual
consent of the other spouse or approval
of the court
o
Once the consent of the other spouse is
given:

It will validate the contract

But the effect of the consent or


approval of the court will not
retroact to the time of the
transaction because a void
contract cannot be ratified

Essentially a new contract is


created at the time of consent
and approval of the court.
*contrary to the common notion,
although spouse own 50% of the
common property, they will have 50-50
share. When one spouse dispose of a
property without the consent of the
other, the sale is VOID in its entirely.
It is not only void so far as the non
consenting
spouse, but also the
consenting spouse. Law is specific the
entire transaction is void even one of
the party consented. So if you happen to
buy a property sold by the husband
alone, and the property belongs to the
absolute property, THE BUYER CANNOT
SAY THAT HE OWN 50% RESPECTING
THE SHARE OF THE CONSENTING
SPOUSE.
Termination of Absolute Community Regime

By death of either spouse


o
Death terminates marriage, terminates
the property relation

When the marriage declared void or nullity or


annulled

When there is decree of legal separation

When there is Judicial Separation of Property


Effects of Termination of the Absolute Community of
Property Regime

Upon termination Liquidation follows


Liquidation of the Absolute Community of Property
Regime

Inventory of all the properties belonging to the


absolute community property must be indicated
and also all the exclusive property
Obligations of absolute shall be deducted to the
absolute community; Obligations of exclusive
property shall be deducted to the exclusive
property
When the assets are more than the liability = net
asset the remaining asset shall be delivered to
the owner
o
Absolute property shall be delivered
equally

Unless stipulations of the


spouses provide otherwise
o
Exclusive property shall be delivered to
the owner spouse of the property
o
Part of items delivered to the common
children = legitimes reserved to the
compulsory heirs/ common children
Advance Inheritance subject to
determination of inheritance upon death
of the parents

102 Absolute Community


Property

129 Conjugal Partnership of


Gains

*the position of the liquidation provides that the family


dwelling shall be awarded to the spouse with whom the
majority of the children choose to stay

General Rule: Children below 7 deem to have


chosen the wife UNLESS the court otherwise
provides because of direct or compelling reason
(wife might be drug addict and finds that
husband is more competent)

In case there is no majority, the court shall


determine to whom the family dwelling shall be
awarded
Conjugal Property of Gains
When will it govern?

During the marriage specifically stipulated in the


Marriage Settlement this is the ONLY instance
o
If no Marriage Settlement Absolute
Community of Property governs
*what governs is the partnership between the spouses
embodied in the marriage settlement debtors of the
property relations shall be performed in accordance with
the terms and conditions in the conjugal partnership of
gains

In matters in conflict Family Code Applies


Properties forming part of Conjugal Property

Those values that the spouses placed in a


common fund
o
Product
o
Fruits - any improvements of principal
properties

Natural piglets, manure, tree


growing in land added to the
principal

Civil rent of a property and


interest of bank deposits

Industrial building introduced


as improvements
o
Income of their exclusive separate
properties
o
Properties acquired by their efforts or by
chance
Specific:

Property acquired during marriage through their


joint efforts. (Ex salaries during the marriage,
etc.)

Fruits of respective property anything acquired


through their profession, degrees, industry and
work
Properties acquired through occupation mode of
acquisition where a property without any owner is
acquired by either spouse (ex. hunting and
fishing)
Chance - Discovery of hidden treasures
Livestock

Relating to Conjugal

in case one of the spouse mortgage his exclusive


property,
then
exercises
his
right
of
redemption
during
the
marriage
=
EXCLUSIVE even property obtained through
payment from conjugal fund or part thereof
STILL EXCLUSIVE
o
conjugal
property
is
entitled
to
reimbursement

Exceptions: - Exclusive to each spouse under


Conjugal Partnership of gains

Any property owned by each spouse at the time


of the celebration of the marriage

Property by direct acquisition


o
But the fruits and income of the
exclusive property = Conjugal

Properties acquired during marriage through


Gratuitous title
o
But the income and fruits = Conjugal
o
DOES NOT provide a provision that if
the donor express provides it to be part
of conjugal

General Rule: Whatever is exclusive shall remain


exclusive even if exchanged by another property so long
as the exclusive property is used in exchange of that
property.

*Distinction from ABSOLUTE COMMUNITY


OF PROPERTY

Income and fruits = Exclusive

There is an exception: It can be


part of the absolute community
property when the grantor or
donor expressly provide it to be
part of the absolute community
property

Property acquired during the marriage through


Right of Redemption, Barter or Exchange
o
Under
the
regime
of
conjugal
partnership of gains are considered
Exclusive
o
exclusive property exchanged with
another property is exclusive (opposite
to the rule of ACPR)
using exclusive money of the either spouse

Right to Redemption What is this animal?


arises from real estate mortgage of a property
Purpose of real estate mortgage in case the borrower
cant pay the loan the creditor can go after the collateral
(mortgaged property) creditor wants to foreclose the
property

FORECLOSURE is that the property is being


offered for sale to the general public Auction
Sale to any interested buyer
*if the debtor cannot pay, the creditor shall not be the
automatic owner of the mortgaged property even with
an agreement between the two STILL VOID (pactum
comesorium) but foreclosure is legal.

In foreclosure, creditor shall not become the


owner goes to the bidding

highest bidder new owner

proceeds creditor will be paid not by becoming


the owner but by applying the proceeds of the
sale resulting from the proportion of the payment
*suppose the property is now foreclosed and awarded to
the winning bidder, under the law one year from the
time the sale is registered in appropriate registrar
of property, the owner of the property foreclose is
given by law the right of redemption 1 year from the time
of registration

original owner can get the property back by


paying the obligation
o
failure to pay the obligation within 1
year,
the property will become the
absolute property of the winning bidder

Distinguish Right of Redemption with Trade-In


Trade-In intend to buy a new car but part of the
purchased price is from the old car value of the old car
shall be considered part of the purchased price for the
new car

Suppose you have an EXCLUSIVE old car, during


marriage you intend to buy a new one
o
Money used exclusive (old car) and
Conjugal Property
o
Owner of the New Car = Conjugal
Property (this falls on properties
acquired during the marriage)
If an exclusive property is sold under Conjugal
Partnership of Gains not expressly provided by law

Proceeds of sale of Exclusive Property it


depends
o
If property sold for the same value at the
time of acquisition ex. 1M BMW sold for
1M no income no profit (using the
principle of barter and exchange)=
EXCLUSIVE
o
If property sold more than the value at
the time of acquisition ex. 1M BMW
sold for 1.5M - with profit 1M is
Exclusive 500k profit is Conjugal
considered as income

Rule on ownership of property acquired through


installment

Suppose either spouse acquires a property


through installments and will be fully paid during
the marriage using part of common fund Who
gets to own the property acquired through
installment? IT DEPENDS
o
If the title of the property is transferred
before the marriage EXCLUSIVE to the
owner spouse even if the purchased
price is partly paid from the common
fund but is entitled to reimbursement
o
If the title of the property is transferred
during the marriage CONJUGAL even
if part of the purchase price is from the
spouse

spouse
is
subject
to
reimbursement
*what if the property is transferred before the marriage
and full payment is during the marriage?

Requires distinction between sales transaction


o
Contract of Sale contract where
ownership is transferred to the buyer
regardless of full payment

Full payment not requirement


for ownership

Transfer of ownership is from


the Delivery of property sold.

If movable property
delivery by physical
delivery to the buyer

Immovable delivery
by formality
Contract to Sell - if expressly agree in
the Contract to sell that ownership
transfer upon full payment of the price
despite the delivery

Property becomes Conjugal


because full payment is during
the marriage

Rule Payments Received during marriage or amount


received during marriage in payment of obligation
extended by either spouse before the marriage
ex. lending business
Rules:

Payment received during marriage for the


principal EXCLUSIVE

Payment received during marriage for the


interest
o
Distinguish as to when the interest
accrued

If interest accrued during


marriage = CONJUGAL

If interest accrued before the


marriage = EXCLUSIVE
Rule on Retirement Benefits, Pension or Gratuity
Who gets to own any amount representing benefits,
gratuity or pension received by either spouse
during the marriage? it DEPENDS

If received gratuitously in pure liberality of the giver


as to recognition of past services = EXCLUSIVE
o
Similar to exclusion to the rule that if
gratuitous exclusive

If received is onerous in nature (part of the salary


deducted, a matter of right) CONJUGAL
Rule on Damages received by either spouse during
marriage
it DEPENDS

If damages received arose from transaction solely


financed by the conjugal partnership belong to
the conjugal funds CONJUGAL

If the damages represent the damages arising


from physical injuries suffered by either spouse
EXCLUSIVE

compensate
the
damage
personally sustained

Rule on Improvement introduced to the separate


property of either spouse. IT DEPENDS

If the cause of improvement and the resulting


increase of the value of that property > separate
property
=
separate
property
becomes
CONJUGAL but the property entitled to
reimbursement
o
Ownership transfer to Conjugal only
upon reimbursement of the separate
property but can be done only during
the dissolution of the conjugal property

If the cause of improvement and the resulting


increase value of the property < separate
property = improvements and increase become
part of EXCLUSIVE entitled to reimbursement
o
Done during dissolution also
*Possible that 1M land + 1M improvement = 3M value
(because of resulting increase of the property)
Formula:

Value of improvement + resulting increase of the


separate property, if > Exclusive Property =
CONJUGAL

improvement + resulting increase < Exclusive


Property = EXCLUSIVE

(UNRELIABLE INFO KAY LIBOG KAAU ANG


RECORDING!!!! PAG BASE LANG SA CODAL!!)
Charges upon Conjugal Partnership of Gains - the
same as absolute, only one distinction

In Absolute Community of Property Art. 94 (9)


Personal Obligations of the Spouses
o
In case of insufficiency of the exclusive
property of the spouse may be satisfied
by the Absolute Community of Property
by
Advance
Reimbursement
Mechanism

Satisfied in the same manner


as the obligations under the
Absolute
Community
of
Property

Under Conjugal Partnership of Gains can only be


satisfied under the Advance Reimbursement
Mechanism out of the conjugal property after all
the obligations pertaining to the Conjugal
Partnership shall have been satisfied
o
It is before the Advance Reimbursement
Mechanism to be applied there has be
an exhaustion of the obligations
pertaining to the Conjugal Partnership

It is only when the assets are in


excess
of
the
liabilities
pertaining to the conjugal
partnership that the excess
may be applied in payment for
the exclusive liability of the
spouse under the Advance
Reimbursement Mechanism
*Principle of Exhaustion does not applied in Absolute
Community of Property regime
Rule on Liquidation

Governed by Arty 102 - ACR

Governed by Art 129 - CPG

Conjugal Dwelling shall be awarded to the spouse


with whom the majority of common children
chose to stay
o
Distinguish this to liquidation of coownership under 147 and 148 Conjugal
Dwelling is not awarded to the spouse
with whom the majority of common
children chose to stay

But it is divided equally among


the party Rule on coownership applies not Art 102
or 129
Separation of Property
Is governed in the instance that:

It is stipulated in Marriage Settlement

When the marriage is terminated by death and


surviving spouse conducted a subsequent
marriage with complying with the requirement of
liquidation of assets of the previous marriage
o
By Art 103 property relation in
subsequent marriage shall be governed
by mandatory regime of Complete
Separation of Property

When there is judicial declaration of separation of


marriage

Abandonment/ failure of either


spouse to comply with marital
obligation

Either spouse is guilty of abuse


in the management of the
community/ conjugal property
no need for court order

When there is separation in fact


between the spouses for at
least 1 year and reconciliation
is highly improbable
*if the ground ceases to exist, the
spouses can revive their former regime
Voluntary Judicial Separation of Property
o
Law does not provide any grounds
o
Joint petition for voluntary judicial
separation of property
o
Party mutually agree to separate their
properties

Law requires that both of them


file
petition
for
voluntary
judicial separation

Law does not specify specific


ground

Just both of them agree


*the spouses can revive their former regime

Separation of Property in case of death of either


spouse

When either of the spouses dies, the law requires


Liquidation of the assets of the spouses shall be
held in the same proceedings for the settlement
of estate of the deceased
o
Law requires settlement of the estate of
the deceased spouse
o
Whatever remains shall be distributed to
his heirs
o
When that person is married and
settlement of estate is absent law
requires that the surviving spouse shall
judicially or extra judicially liquidate the
assets

Shall be complied within 1 year


from the death of other spouse
Effect of failure to comply with liquidation - DEATH

Any disposition made involving the property or


the asset is VOID

Suppose the surviving spouse contract a


subsequent marriage, the property relation of the
subsequent marriage shall be governed by
complete separation of property regimes
mandatory
*Distinguish from a marriage where there is failure to
comply with liquidation but NOT BECAUSE OF DEATH BUT
BY COURT ORDER (nullity of marriage or annulment)

Failure to comply with liquidation that provided


under Article 53
*requirement under Articles 50, 51, 52 Liquidation of
Absolute Community and Conjugal Partnership provided
under Art. 43 (2) in relation to Art 102 and 129 What is
the effect?

Law requires that the liquidation, partition,


delivery and distribution shall be recorded in the
appropriate local registrar and the appropriate
registry of property
o
Failure to do so will render the
SUBSEQUENT MARRIAGE VOID
under Art 53
Distinguish the (1) situation where the marriage is
terminated by death failure to comply with
requirement of liquidation and (2) situation where
the marriage is terminated by court order either by
nullity or annulment.

In death marriage is valid


o
Effect: property regime of subsequent
marriage is that of complete separation
of property regime

If by court order (Art 53) it will have to comply


with Art 147 Co-Ownership
Judicial Separation of Property

Involuntary Judicial Separation of Property


o
Law provides for specific grounds

Either spouse is imposed of civil


interdiction accessory penalty
of a crime

Either spouse is declared by the


court as an absentee

Either spouse is declared by the


court having lost their parental
authority
st
*1
three grounds requires court
decision before they can be used as a
basis or petition for involuntary judicial
separation

After the court declares the judicial separation

Spouses may agree to revive


their former regime

Limited only ONCE


*in both situation there is always approval from the court
Complete Separation of Property Effects:

Each spouse shall have full ownership of his/her


property Exclusive

May use, abuse, enjoy or dispose of their


respective properties without the consent of the
other spouse
o
Family Expenses spouses shall be
jointly responsible proportion to their
respective INCOME

In absence of income
contribution determine by the
respective value of exclusive
properties
*under Art. 146 spouses are
solidarily liable to the creditor to
whatever is incurred by the family
expenses.
Unions without the Marriage or is Void

Governed by 147 and 148

subject to the Rule on CO-OWNERSHIP

*Distinguish 147 and 148 both involves union without


marriage or there is marriage but declared void.
ART 147

The parties lives together without marriage but


parties are capacitated to marry

Or the parties are married but marriage is void on


grounds other than legal capacity
Void marriages covered under 147 void which has
nothing to do with legal capacity

Void under Art. 36 either or both parties is


guilty of psychological incapacity but has nothing
to do with capacity to marry
Art 53 subsequent marriage void because of
non-compliance with liquidation requirement
prescribed by Art. 51 and Art. 52.

No liquidation after the marriage was


terminated by court order
o
Void because of non-compliance with
liquidation, not by legal capacity

Art 44 subsequent marriage where one of the


spouses previously obtained a court declaration
of presumptive death of the missing spouse
o
Parties acted in bad faith they knew
that the missing spouse is actually not
missing
o
It is void, but this ground that renders
the marriage void has nothing to do with
capcity to marry

either or both of the contracting parties did not


give consent under Art. 4 Essential Requisite

Void because of absence of a Marriage License

Void because of lack of authority of the


solemnizing officer

Void because of lack of marriage ceremony


*THESE VOID MARRIAGES HAS NOTHING TO DO
WITH CAPACITY TO MARRY
o

Structure of property regime under 147


Governed by rule on co-ownership

Wages and salaries earned by either party during


the union/void marriage belong to both equally
unless there is a different agreement to the
sharing
o
Presume that all wages and salaries
earned are owned by either spouses
belongs to both of them even if it is
earned by only one of them

Properties acquired using the exclusive funds of


either party or either spouse under void
marriage Exclusive to the spouse concerned

Properties acquired by both through their work,


effort, industry belong to both
The Rule:
a. absence of proof to the contrary, any property
acquired during the void marriage presumed jointly
acquired equal ownership (50-50 unless theres
different arrangement)
b. Participation of either spouse consisting of only
maintenance and care of the family and household is
enough to entitle that spouse to share of property
under co-ownership
c. Neither party can dispose of their shares to the
third party without the consent of the other before
the termination of the union
o
But even before the termination, either
of them may dispose their share to the
other
d. Fruits and income of separate and exclusive
properties do not form part of the partnership
EXCLUSIVE
*If one of the parties acted in bad faith, his share in the
co-ownership it is FORFEITED NO SHARE

Order of Forfeiture:
o
Shares of the partner who acted in bad
faith goes to the common children and
common descendants
o
In the absence of no. 1, share shall go to
their
respective
legitimate
descendants by a former marriage
o
In absence of no. 2, share shall go to the
Innocent spouse
*Distinguish 147 from Forfeiture under Art 43 (2)
Under 43 (2) Limited only to the net profits only, not
the whole share, only the increasing value of the property
at the time of the dissolution from time of marriage, he
still gets the principal share

Under 147 whole share is forfeited party who acted in


bad faith gets nothing
The order of the share of forfeiture:
o
The share Shall go to the Common
children ONLY not descendants, other
descendants not covered
o
In absence of no. 1, it shall go to the
Children of the guilty spouse
o
In absence of no.2, it shall go to the
innocent Spouse
ART 148

The parties live together without marriage at all


and incapacitated to marry

Or under void marriage because they are not


legally capacitated
Void marriages falling under 148:

Art. 37 Incestuous marriage incapacity by


reason of relationship

Art. 38 Because of Public Policy

Art. 40 subsequent marriage without


complying with judicial declaration of nullity of
marriage
o
Because in the absence of declaration of
nullity the subsequent marriage is
Bigamous

Art. 4 either or both of the party is below 18


age

Same sex marriage


Structure of the property regime under Art 148:

Salaries and wages EXCLUSIVE to the


earning spouse

Properties acquired using the exclusive fund


of one of party EXCLUSIVE

Only properties acquired through joint actual


contribution of money, effort and industry COOWNED
o
Only those joint contribution of money,
effort and industry
o
Contributions should be actual
o
Mere administration or management
not sufficient contribution to the
acquisition

No presumption that what ever


is acquired during the union is
joint

There has to be proof of actual


contribution of money, work or
industry

If there is proof property is


shared equally

Neither party can dispose of their shares to the


third party without the consent of the other
before the termination of the union (like 147)
o
But even before the termination, either
of them may dispose their share to the
other partner
*if one of the spouses is legally married to another
previously, the salary that he/she earns belongs to the
ACR or CPR in the previous marriage
*the same applies to properties acquired through the joint
actual contribution of money, industry, work

share of the spouse who is previously married


to another belongs to the APR or CPR in the
previous marriage (Cario vs Cario; Villanueva
Case)
*if one of the spouses who is not married acted in bad
faith

his/his share shall be forfeited in order of


forfeiture

o
o
o

Common Children or Descendants


Respective Legitimate Descendants
Innocent Spouse

Family Home house and lot in which it is constructed,


occupied by the spouses or unmarried head of the family
Family Dwelling
When is it constituted?

Before it requires court proceedings Summary


Proceedings

Now ACTUAL OCCUPANCY of the house and


lot as FAMILY RESIDENCE
Who may constitute?

Husband and wife, jointly

Unmarried head of the family

Any beneficiaries with consent of the owner of


the house and lot and their spouses even owner
is not residing therein
In What property may a family home be
constituted?

Properties belonging to CPR or ACR

Constituted in the property owned by the


unmarried head

In the property of one spouse with the consent of


the other
*if the property owned by the 3rd party not a family home
there is absence of the element of permanence
*Family home is permanent in nature.
*law requires actual occupation not constructive
occupation must have the element of actuality actual
residence
*beach house not a family home

Who are beneficiaries?

Spouses

Unmarried head

Any of their parents, ascendants, descendants,


brothers and sisters (legitimate or illegitimate)

in-laws actually residing and dependent of the


head of the family with legal support
*Apo/grandson cannot be considered beneficiary even if
residing in the family home grandfather not legally
obliged to support the Apo if survived by his parent (son)
Benefit if the house and lot is considered family
home

exempted from
o
force sale
o
execution or
o
attachments of debts
Obligations which can be enforce against family
home provided by law these are more superior to
the family home

Taxes non payment

Obligations incurred before the constitution of the


family home

If family home is mortgaged in payment of an


obligation made as collateral

Mechanics lien obligations due to laborers


(mechanics, architects, builder) or to anyone

who gave materials for the construction of the


family home failure to pay the services
*They can go after the family home to satisfy the
obligation.
Procedure - If falling under preferred Creditors and value
of family home falls within the limits prescribed by law

the family home may be subjected to force sale


or execution to satisfy the entire claim
*if obligation is 500k, family home is 300k
-entire proceeds will go the creditor if bigger debt
*if obligation is 300k, family home is 500k
-credit is less than the value any excess will be returned
to the owner
*if the creditor not any of the 4 falling above cannot go
after the family home not superior than family home

if he believes that the family home is more than


the value fixed by law
o
he can go to court and ask for the
determination of the value of the family
home as to the time of constitution
o
if you can prove that indeed the value is
more than the maximum value fixed by
law

ask the court to issue an order


directing the sale of the family
home to apply the proceeds of
the sale in satisfaction of your
claim
Procedure: - if not falling under preferred Creditors and
value of family home not within the limits prescribed by
law more than

ex. Obligation 500k

Value of the property 500K it is 200k more


than fixed by law (300k in urban area)
o
Will be auctioned no bid lower than
the value fixed by law

200k rural

300k urban
o
Supposed sold at 500k

300k given to the owner of


family home

200k excess to the creditor


for satisfaction of the claim
*to
afford
the
debtor
the
opportunity to construct or build
another family home
When one of those who constituted the family home
dies, what will happen to family home?

It will continue to exist as such for a period of 10


years or even longer so long as minor
beneficiary resides therein
o
10 years shortest period before the
heirs can divide the family home
o
if theres still minor beneficiary residing
therein, it cannot be divided even after
10 years
Partitions:
Extra Judicial Partition heirs voluntarily agree among
themselves to divide

after death, the family home will be under coownership among the compulsory heirs
o
heirs are not compelled to stay under
the
co-ownership
forever

not
compelled by law to maintain the coownership
o
everyone has the right to ask the
division of partition of the property
owned common

if it is a family home but there


is limitation: not allowed to
partition until 10 years lapse
and longer if there is a minor
beneficiary

Judicial Partition ordered by the court

may be done by filing a petition to judicial


partition if the heirs cannot agree on the division
o
court decides on how the partition
should be done

also prohibited within the first 10 years, or when


minor beneficiary resides in the family home
o
Except:

Compelling reason to effect a


partition
earlier

ex.
beneficiary is no longer living
harmoniously
If the spouse wants to sell the family home, jointly
constituted

Needs consent of the spouse and the majority of


the beneficiaries of legal age
o
If no consent of the majority of
beneficiaries Jurisprudence is silent

POINTERS:
*debts incurred in the exercise of legitimate
profession in relation to isolated transaction;
*147, 148 definitely;
*barter and exchange, installment, payments
received for interest and principal;
*determine whether the property is exclusive,
common or conjugal;
*pay
particular
attention
to
statutory
exclusion;
*rights and obligations... not so much;
*donation by reason of marriage, if made in a
marriage settlement or in a deed of donation,
as to the limitation of not more than 1/5;
*the effect if the marriage is not celebrated
and the effect of donation;
*\distinction between 43(2) in relation to
liquidation of conjugal or acp, distinguish this
from 147 and 148 insofar as the family
dwelling, the liquidation. you review the case
of antonio valdez vs rtc.