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Absolute Community of Property vs.

Conjugal Partnership of Gains


CIVIL LAW REVIEW I
ACP vs. CPG
By Olive Cachapero

Absolute Community Property Difference Conjugal Partnership Gains


Default property regime under the Default Default property regime under the Old Civil
Family Code, in the absence of Property Code
marriage settlement, or when the Regime
regime agreed upon is void

Art. 88. The absolute community of Commencement Art. 88. The absolute community of
property between spouses shall property between spouses shall commence
commence at the precise moment that at the precise moment that the marriage is
the marriage is celebrated. Any celebrated. Any stipulation, express or
stipulation, express or implied, for the implied, for the commencement of the
commencement of the community community regime at any other time shall
regime at any other time shall be void. be void.

Art. 91, FC. Unless otherwise What Art. 106,FC. Under the regime of conjugal
provided in this Chapter or in the constitutes partnership of gains, the husband and wife
marriage settlements, the community ACP/CPG place in a common fund the
property shall consist of proceeds, products, fruits and income from
all the property owned by the spouses at their separate properties and
the time of the celebration of the those acquired by either or both spouses
marriage or through their efforts or by chance, and,
acquired thereafter. upon dissolution of the marriage or of the
including winnings from gambling (Art. partnership, the net gains or benefits
95, FC) obtained by either or both spouses shall be
divided equally between them, unless
otherwise agreed in the marriage
basically EVERYTHING, hence no need settlements.
to worry about interest, winnings, fines,
etc.(see Articles 106, 115, 118, 119, 120) Art. 117. The following are conjugal
partnership properties:
1) Those acquired by onerous title during
the marriage at the expense of the common
fund, whether the acquisition be for the
partnership, or for only one of the spouses;
2) Those obtained from the labor, industry,
work or profession of either or both of the
spouses;
3) The 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;
4) The 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;
5) Those acquired through occupation such
as fishing or hunting;
6) Livestock existing upon the dissolution of
the partnership in excess of the number of
each kind brought to the marriage by either
spouse; and
7) Those which are acquired by chance, such
as winnings from gambling or betting.
However, losses therefrom shall be borne
exclusively by the loser-spouse.

Including: (Family Code)


Art. 118. Property bought on installments
paid party from exclusive funds of either
spouses and arty from conjugal funds, if full
ownership was vested DURING the
marriage (subj to reimbursement upon
liquidation of partnership)
Art. 119. Interest falling due DURING the
marriage, accruing from a credit payable to
the spouse (but the principal belongs
exclusively to the creditor-spouse)
Art. 120. Ownership of improvements
(whether for utility or adornment) on the
separate property of the spouses at the
expense of the partnership or through the
acts/efforts of either or both spouses
belong to the CPG OR the owner-spouse
subject to reimbursement

Art. 92, FC. The following shall be Exclusions FC Art. 109. The following shall be the
excluded from the community exclusive property of each spouse:
property: 1) That which is brought to the marriage as
1) Property acquired during the his or her own;
marriage by gratuitous title by either 2) That which each acquires during the
spouse, and the fruits as well as the marriage by gratuitous title;
income thereof, if any, unless it is 3) That which is acquired by right of
expressly provided by the donor, redemption, by barter or by exchange with
testator or grantor that they shall form property belonging to only one of the
part of the community property; spouses; and
2) Property for personal and exclusive 4) That which is purchased with exclusive
use of either spouse. However, jewelry money of the wife or of the husband.
shall form part of the community
property; Also:
3) Property acquired before the Art. 122. Payment of personal debts of H/W
marriage by either spouse who has before/during the marriage which has NOT
legitimatedescendants by a former redounded to the benefit of the family
marriage, and the fruits as well as the Art. 122. Fines and pecuniary indemnities
income, if any, of such property. imposed upon the H/W

Art. 92 (1) even fruits are excluded Art. 109 (2) only the property is excluded but
its fruits belong to the CPG
Art. 90, FC. The provisions on CO- Suppletory FC Art. 108. The conjugal partnership
OWNERSHIP shall apply to the Rule shall be governed by the rules on the
absolute community of property contract of PARTNERSHIP in all that is
between the spouses in all matters not not in conflict with what is expressly
provided for in this Chapter. determined in this Chapter or by the
spouses in their marriage settlements.
Hence, simply divide by two
Still have to worry about who uses, who
pays, etc.
FC Art. 93. Property acquired during Presumption Article 160, NCC. All property of the
the marriage is presumed to belong to marriage is presumed to belong to the
the community, unless it is proved that conjugal partnership, unless it be proved
it is one of those excluded therefrom. that it pertains exclusively to the husband
or to the wife.

FC Art. 94. The absolute community Charges from Art. 121. The conjugal partnership shall be
of property shall be liable for: ACP/CPG liable for:
1) The support of the spouses, their 1) The support of the spouse, their common
common children, and legitimate NOTE:Art. 94 children, and the legitimate children of
children of either spouse; however, the (5) vs. Art. 121 either spouse; however, the support of
support of illegitimate children shall be (5) illegitimate children shall be governed by
governed by the provisions of this Code the provisions of this Code on Support;
on Support; Art. 94 has #92) All debts and obligations contracted
2) All debts and obligations contracted while Art. 121 during the marriage by the designated
during the marriage by the designated has no such administrator-spouse for the benefit of the
administrator-spouse for the benefit of provision. Such conjugal partnership of gains, or by both
the community, or by both spouses, or provision for spouses or by one of them with the consent
by one spouse with the consent of the CPG is found in of the other;
other; Art. 122. 3) Debts and obligations contracted by
3) Debts and obligations contracted by either spouse without the consent of the
either spouse without the consent of other to the extent that the family may have
benefited;
the other to the extent that the family 4) All taxes, liens, charges, and expenses,
may have been benefited; including major or minor repairs upon the
4) All taxes, liens, charges and conjugal partnership property;
expenses, including major or minor 5) All taxes and expenses for mere
repairs, upon the community property; preservation made during the marriage
5) All taxes and expenses for mere upon the separate property of either
preservation made during marriage spouse;
upon the separate property of either 6) Expenses to enable either spouse to
spouse used by the family; commence or complete a professional,
6) Expenses to enable either spouse vocational, or other activity for self-
tocommence or complete a improvement;
professional or vocational course, or 7) Antenuptial debts of either spouse insofar
other activity for self-improvement; as they have redounded to the benefit of the
7) Antenuptial debts of either spouse family;
insofar as they have redounded to the 8) The value of what is donated or promised
benefit of the family; by both spouses in favor of their common
8) The value of what is donated or legitimate children for the exclusive
promised by both spouses in favor of purpose of commencing or completing a
their common legitimate children for professional or vocational course or other
the exclusive purpose of commencing activity for self-improvement; and
or completing a professional 9) Expenses of litigation between the
or vocational course or other activity spouses unless the suit is found to
for self-improvement; groundless.
9) Antenuptial debts of either spouse
other than those falling under If the conjugal partnership is insufficient to
paragraph (7) of this Article, cover the foregoing liabilities, the spouses
thesupport of illegitimate children of shall be solidarily liable for the unpaid
either spouse, and liabilities incurred balance with their separate properties.
by either spouse by reason of a crime or
a quasi-delict, in case of absence or Including:
insufficiency of the exclusive property Art. 122. Payment of personal debts of H/W
of the debtor-spouse, the payment of before/during the marriage insofar as they
which shall be considered redounded to the benefit of the family
as advancesto be deducted from the Art. 122. Personal debts, fines and
share of the debtor-spouse upon indemnities, support of illegitimate
liquidation of the community; and children of either spouse, may be enforced
10) Expenses of litigation between the against the partnership upon the ff
spouses unless the suit is found to be conditions:
groundless. 1) After the responsibilities under Art. 121
are paid, AND
If the community property is 2) If the spouse has no exclusive property or
insufficient to cover the foregoing sufficient property
liabilities, except those falling under 3) Provided, that these will be charged to the
paragraph (9), the spouses shall be spouse upon liquidation of the partnership
solidarily liable for the unpaid balance
with their separate properties.

FC Art. 96. The administration and Ownership, FC Art. 124. The administration and
enjoyment of the community property Administration enjoyment of the conjugal partnership shall
shall belong to both spouses jointly. & enjoyment belong to both spouses jointly.
Disagreement: husband's decision Same as Art. 96
shall prevail, subject to recourse to the
court by the wife for proper remedy, FC Art. 142. The administration of all
which must be availed of within five classes of exclusive property of either
years from the date of the contract spouse may be transferred by the court to
implementing such decision. the other spouse:
One spouse is incapacitated/unable 1) When one spouse becomes
to participate in the administration of the guardian of the other;
the conjugal properties: the other 2) When one spouse is judicially declared
spouse may assume sole powers of an absentee;
administration. These powers do not 3) When one spouse is sentenced to a
include disposition or encumbrance penalty which carries with it civil
without authority of the court or the interdiction; or
written consent of the other spouse. In 4) When one spouse becomes a fugitive
the absence of such authority or from justice or is in hiding as an accused in
consent, the disposition or a criminal case.
encumbrance shall be void. However,
the transaction shall be construed as a If the other spouse is not qualified by
continuing offer on the part of the reason of incompetence, conflict of interest,
consenting spouse and the third or any other just cause, the court shall
person, and may be perfected as a appoint a suitable person to be
binding contract upon the acceptance theadministrator.
by the other spouse or authorization by
the court before the offer is withdrawn
by either or both offerors.

Art. 100 (3) FC. In the absence of Support of Art. 127 (3). In the absence of sufficient
sufficient community property, the family in case conjugal partnership property, the separate
separate property of both spouses shall of separation in property of both spouses shall be solidarily
be solidarily liable for the support of the fact bet. H&W liable for the support of the family. The
family. The spouse present shall, upon spouse present shall, upon petition in a
proper petition in a summary summary proceeding, be given judicial
proceeding, be given judicial authority authority to administer or encumber any
to administer or encumber any specific specific separate property of the other
separate property of the other spouse spouse and use the fruits or proceeds
and use the fruits or proceeds thereof to thereof to satisfy the latter's share.
satisfy the latter's share.

Art. 99. The absolute community Termination FC Art. 126. The conjugal partnership
terminates: terminates:
1) Upon the death of either spouse; 1) Upon the death of either spouse;
2) When there is a decree of legal 2) When there is a decree of legal
separation; separation;
3) When the marriage is annulled or 3) When the marriage is annulled or
declared void; or declared void; or
4) In case of judicial separation of 4) In case of judicial separation of property
property during the marriage under during the marriage under Articles 134 to
Article 134 to 138. 138.

Art. 102. Upon dissolution of the Dissolution Art. 129. Upon the dissolution of the
absolute community regime, the conjugal partnership regime, the following
following procedure shall apply: NOTE: Art. 102 procedure shall apply:
1) An inventory shall be prepared, (5) and Art. 1291) An inventory shall be prepared, listing
listing separately all the properties of (8) apply only in separately all the properties of the conjugal
the absolute community and the Articles 40 and partnership and the exclusive properties of
exclusive properties of each spouse. 45. each spouse.
2) The debts and obligations of the 2) Amounts advanced by the conjugal
absolute community shall be paid out partnership in payment of personal debts
of its assets. In case of insufficiency of and obligations of either spouse shall be
said assets, the spouses shall be credited to the conjugal partnership as an
solidarily liable for the unpaid balance asset thereof.
with their separate properties in 3) Each spouse shall be reimbursed for the
accordance with the provisions of the use of his or her exclusive funds in the
second paragraph of Article 94. acquisition of property or for the value of
3) Whatever remains of the exclusive his or her exclusive property, the ownership
properties of the spouses shall of which has been vested by law in the
thereafter be delivered to each of them. conjugal partnership.
4) The net remainder of the properties 4) The debts and obligations of the conjugal
of the absolute community shall partnership shall be paid out of the
constitute its net assets, which shall be conjugal assets. In case of insufficiency of
divided equally between husband and said assets, the spouses shall be solidarily
wife, unless a different proportion or liable for the unpaid balance with their
division was agreed upon in the separate properties, in accordance with the
marriage settlements, or unless there provisions of paragraph (2) of Article 121.
has been a voluntary waiver of such 5) Whatever remains of the exclusive
share provided in this Code. For properties of the spouses shall thereafter be
purpose of computing the net profits delivered to each of them.
subject to forfeiture in accordance with 6) Unless the owner had been indemnified
Articles 43, No. (2) and 63, No. (2), the from whatever source, the loss or
said profits shall be the increase in deterioration of movables used for the
value between the market value of the benefit of the family, belonging to either
community property at the time of the spouse, even due to fortuitous event, shall
celebration of the marriage and the be paid to said spouse from the conjugal
market value at the time of its funds, if any.
dissolution. 7) The net remainder of the conjugal
5) The presumptive legitimes of the partnership properties shall constitute the
common children shall be delivered profits, which shall be divided equally
between husband and wife, unless a
upon partition, in accordance with different proportion or division was agreed
Article 51. upon in the marriage settlements or unless
6) Unless otherwise agreed upon by the there has been a voluntary waiver or
parties, in the partition of the forfeiture of such share as provided in this
properties, the conjugal dwelling and Code.
the lot on which it is situated shall be 8) The presumptive legitimes of the
adjudicated to the spouse with whom common children shall be delivered upon
the majority of the common children the partition in accordance with Article 51.
choose to remain. Children below the 9) In the partition of the properties, the
age of seven years are deemed to have conjugal dwelling and the lot on which it is
chosen the mother, unless the court has situated shall, unless otherwise agreed
decided otherwise. In case there in no upon by the parties, be adjudicated to the
such majority, the court shall decide, spouse with whom the majority of the
taking into consideration the best common children choose to remain.
interests of said children. Children below the age of seven years are
deemed to have chosen the mother, unless
Formula: Net proceeds = Net Assets/2 the court has decided otherwise. In case
there is no such majority, the court shall
decide, taking into consideration the best
interests of said children.

Formula: Net remainder = Net Profits/2

No such proof Proof In Articles 106, 115, 118, 119, 120, it may be
proved whether the property belongs to the
CPG or is an exclusive property of the
spouse