CONJUGAL PARTNERSHIP OF GAINS (CPG)
Q: What is a Conjugal Partnership of Gains (CPG)?
A: It is the property relation formed by the husband and the wife by placing in a common fund:
1. The proceeds, product, fruits, and income of their separate properties;
2. Those acquired by either or both of them through:
a. Effort – an activity or undertaking which may or may not be rewarded;
b. Chance – activities like gambling or betting. (Art. 106, FC)
Q: When does the CPG commence?
A: CPG shall commence at the precise moment when the marriage ceremony is celebrated.
Q: What law governs the conjugal partnership?
A: The rules on the contract of partnership in all that is not in conflict with what is expressly determined
in the FC and by the spouses in their marriage settlements. (Art. 108, FC)
Q: What is meant by “only inchoate right over conjugal property”?
A: The interest of the spouses in the conjugal properties is only inchoate or a mere expectancy and does
not ripen into title until it appears during the dissolution and liquidation of the partnership that there are
net assets. (Sempio-Diy, 1995)
EXCLUSIVE PROPERTY OF EACH SPOUSE
Q: What properties remain exclusive to each spouse?
A:
1. Those brought into the marriage as his/her own;
a. A property purchased before the marriage and fully paid during the marriage remains to be a
separate property of either spouse; (Lorenzo v. Nicolas, G.R. No. L-4085, 30 July 1952)
b. Fruits and income of said properties shall be included in the conjugal partnership; and
c. Those included therein in the marriage settlement, subject to the 1/5 limitation under Art. 84
and the rule in Art. 92(3) of the FC which applies by analogy.
2. Those acquired during the marriage by gratuitous title;
a. Pensions will not form part of the conjugal partnership of gains when it is given to him
voluntarily and he is not entitled as a matter of right such as a fruit of industry or labor;
b. Proceeds of life insurance policy will not form part of the conjugal partnership of gains when
the beneficiary of the life insurance is the estate, and the premiums are sourced from the separate
property of the spouse; and
c. Retirement benefits will not form part of the conjugal partnership of gains when it is given to
him voluntarily, and he is not entitled as a matter of right to such as a fruit of industry or labor.
3. Those acquired by right of redemption, barter, or exchange with exclusive property;
NOTE: In right of redemption, for it to form part of the exclusive property of the spouse, the
ownership over such property must still pertain to the said spouse.
4. That purchased with exclusive money of either spouse. (Art. 109, FC)
NOTE: The controlling factor is the source of the money used, or the money promised to be paid.
Q: Who may alienate, encumber, or mortgage exclusive property?
A: Either spouse may mortgage, encumber, alienate, or otherwise dispose of his or her exclusive property.
(Art. 111, FC as amended by R.A. No. 10572)
RULES ON IMPROVEMENT OF EXCLUSIVE PROPERTY
Q: What is reverse accession?
A: If the cost of the improvement and the value of the improvement are more than the value of the
principal property at the time of the improvement, the entire property becomes conjugal.
NOTE: For reverse accession to apply, the separate property must be owned by a spouse exclusively at
the time of the introduction of the improvement.
Q: What is accession under Art. 120?
A: If the cost of the improvement and the value of the improvement are equal to or less than the value of
the principal property, the entire property becomes the exclusive property of the respective spouse. (Art.
120, FC)
NOTE: In either case, there shall be reimbursement upon the liquidation of the CPG, and ownership of
the entire property shall be vested only upon reimbursement.
PRESUMPTION IN FAVOR OF CONJUGAL PROPERTY
Q: What is the presumption of inclusion of property in the CPG?
A: All property acquired during the marriage, whether the acquisition appears to have been made,
contracted, or registered in the name of one or both spouses, is presumed to be conjugal.
XPN: Unless the contrary is proved.
ALIENATION OF CONJUGAL PROPERTY
Q: What is required for the alienation or encumbrance of conjugal property?
A: Consent from the other spouse.
OBLIGATIONS CHARGEABLE TO SEPARATE PROPERTY
Q: What obligations are chargeable to separate property?
A:
1. Support of illegitimate children;
2. Liabilities incurred by reason of a crime or quasi-delict;
3. Expenses of litigation between the spouses if found to be groundless;
4. Debts contracted during the marriage by the administrator-spouse which does not benefit the
community;
5. Debts contracted during the marriage without the consent of the other which did not benefit the
family;
6. Ante-nuptial debts by either spouse which did not benefit the family;
7. Taxes incurred on the separate property which is not used by the family; and
8. Expenses incurred during the marriage on a separate property if the property is not used by the
family and not for its preservation.
COMPOSITION OF THE CONJUGAL PARTNERSHIP OF GAINS
Q: What constitutes the conjugal partnership of gains?
A:
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 shares of either spouse in the hidden treasure which the law awards to the finder or owner
(Art. 438, NCC);
5. Those acquired through occupation such as fishing in the open sea;
6. Livestock existing at the dissolution of the partnership in excess of the number of each kind
brought to the marriage by either spouse;
7. Those acquired by either spouse during the marriage by chance, such as winnings from gambling
or betting.
NOTE: Losses from gambling shall be borne by the loser spouse and shall NOT be charged to the
conjugal partnership.
INSTALLMENT PROPERTY RULE
Q: What is the rule on property bought on installment prior to the marriage?
A: The property shall be exclusive if full ownership is vested before the marriage. (Art. 118, FC)
NOTE: The buyer becomes the owner of the thing upon actual or constructive delivery, not upon full
payment.
Q: What is the rule when installment payments are made partly before and partly during the
marriage?
A: The property is owned separately by the spouses and is divided proportionately based on payments
made before and during the marriage. (Art. 118, FC)
CHARGES UPON THE CONJUGAL PARTNERSHIP
Q: What are the charges upon the conjugal partnership?
A:
1. The support of the family;
2. All debts and obligations contracted during the marriage by the designated administrator-spouse
for the benefit of the conjugal partnership;
3. Taxes and expenses for mere preservation made during the marriage upon the separate property of
either spouse used by the family;
4. Expenses to enable either spouse to commence or complete a professional or vocational course,
or other activity for self-improvement;
5. Antenuptial debts of either spouse insofar as they benefited the family;
6. The value of what is donated or promised by both spouses in favor of their common legitimate
children for the exclusive purpose of commencing or completing a professional or vocational
course or other activity for self-improvement; and
7. Expenses of litigation between the spouses unless the suit was found to be groundless.
REIMBURSEMENT TO CONJUGAL PARTNERSHIP
Q: When is reimbursement due to the conjugal partnership?
A: The conjugal partnership shall be reimbursed for the payment of personal debts of a spouse, support of
illegitimate children, and liabilities not chargeable to the partnership.
ADMINISTRATION OF CONJUGAL PROPERTY
Q: Who administers the conjugal partnership?
A: The husband and wife jointly administer the conjugal property.
XPN: In case of disagreement, the husband’s decision shall prevail, subject to recourse to the court by the
wife for proper remedy. (Art. 124, FC)
Q: What happens if one spouse is incapacitated or unable to participate in the administration?
A: The other spouse may assume sole powers of administration. (Art. 124, FC)
DONATIONS IN CONJUGAL PARTNERSHIP
Q: What is the rule on donations made by the spouses during the marriage?
A: Neither spouse may donate any conjugal property without the consent of the other.
XPN: Moderate donations for charity or on occasions of family rejoicing or family distress. (Art. 125,
FC)
DISSOLUTION OF THE CONJUGAL PARTNERSHIP OF GAINS
Q: When is the conjugal partnership of gains dissolved?
A:
1. Upon the death of either spouse;
2. When there is decree of legal separation;
3. When the marriage is annulled or declared void;
4. In case of judicial separation of property; and
5. When there is a voluntary dissolution of the conjugal partnership during the marriage, or other
reasons provided by law.
LIQUIDATION OF THE CONJUGAL PARTNERSHIP
Q: What is the order of liquidation after dissolution of the CPG?
A:
1. Inventory of conjugal property;
2. Payment of debts and obligations;
3. Reimbursement of advances made by either spouse;
4. Delivery of exclusive properties to each spouse;
5. Division of net remainder between spouses (or heirs in case of death).
ORDER OF PREFERENCE IN PAYMENT OF LIABILITIES
Q: What is the order of preference in settling obligations of the CPG?
A:
1. Obligations chargeable to the conjugal partnership;
2. Reimbursement to either spouse for personal funds used for conjugal benefit;
3. Delivery of net remainder.
FORFEITURE OF SHARE IN CONJUGAL PARTNERSHIP
Q: What happens when a spouse is guilty of legal separation grounds?
A: The share of the guilty spouse in the net profits of the conjugal partnership shall be forfeited in favor
of the common children or the innocent spouse. (Art. 43, FC by analogy)
EFFECT OF SEPARATION OF PROPERTY
Q: What is the effect of judicial separation of property?
A: It terminates the conjugal partnership and vests administration and enjoyment of property separately in
each spouse.
EFFECT OF ANNULMENT OR NULLITY
Q: What happens to the CPG when the marriage is annulled or declared void?
A:
1. If both spouses are in good faith → CPG is dissolved and liquidated like a valid marriage.
2. If only one spouse is in good faith → Share of spouse in bad faith is forfeited in accordance with
Art. 43(2), FC.
SUPPORT OBLIGATION
Q: How is support charged when CPG exists?
A: Support for common children and spouses is chargeable to the conjugal partnership.
TERMINATION OF ADMINISTRATION RIGHTS
Q: When does the power to administer conjugal property cease?
A: Upon dissolution of the conjugal partnership.
REIMBURSEMENT AND ADVANCES
Q: When is reimbursement due to a spouse from the conjugal partnership?
A: Reimbursement is due when the separate funds of a spouse were used for conjugal purposes.
Q: When is reimbursement due from a spouse to the conjugal partnership?
A: When conjugal funds were used for the exclusive benefit of one spouse or to pay for personal debts.
NET PROFITS
Q: What are net profits?
A: The increase in value of the conjugal partnership property existing at the time of liquidation, after
deducting obligations.
EFFECT OF DEATH ON CPG
Q: What happens to the CPG when one spouse dies?
A: The conjugal partnership is dissolved and must be liquidated before any distribution of estate.
EFFECT OF LEGAL SEPARATION ON CPG
Q: What is the effect of a decree of legal separation on the CPG?
A: The conjugal partnership is dissolved and liquidated, and the guilty spouse forfeits his or her share in
the net profits.
EFFECT OF ANNULMENT OR NULLITY ON CPG
Q: What is the effect on the CPG if marriage is annulled or declared void?
A:
1. If both spouses are in good faith → apply rules on dissolution of CPG.
2. If only one is in good faith → share of spouse in bad faith is forfeited.
SEPARATION IN FACT
Q: Does separation in fact dissolve the CPG?
A: No. Separation in fact does not dissolve the conjugal partnership.
ADMINISTRATION AFTER DISSOLUTION
Q: Who manages the conjugal property after dissolution?
A: The surviving or present spouse remains administrator until liquidation, unless otherwise ordered by
the court.
TIMEFRAME FOR LIQUIDATION
Q: When must liquidation of CPG take place?
A:
1. Upon death of a spouse → liquidation must precede distribution of estate.
2. Upon annulment, legal separation, or nullity → liquidation shall be done in the same proceeding.
PROPERTY REGIME IF NO LIQUIDATION
Q: What happens if CPG is not liquidated after death or annulment?
A: The property regime of the surviving or present spouse becomes one of complete co-ownership.
LIABILITY OF CONJUGAL PARTNERSHIP
Q: Are the conjugal properties liable for the debts of one spouse contracted before marriage?
A: No, unless the family benefited from the debt.
SUPPORT OF ILLEGITIMATE CHILDREN
Q: From what fund is the support of illegitimate children chargeable?
A: From the separate property of the parent, not from the conjugal partnership.
INSURANCE PROCEEDS
Q: Do life insurance proceeds form part of the conjugal partnership?
A: No, if the beneficiary is the estate and premiums were paid from separate property.
TAXES AND EXPENSES
Q: Are taxes on separate property chargeable to the conjugal partnership?
A: Yes, but only if the property is used by the family.
Q: Are expenses for preservation of separate property chargeable to the CPG?
A: Yes, but only if the property is used by the family.
EXPENSES FOR EDUCATION OR SELF-IMPROVEMENT
Q: Are expenses for a spouse’s professional or vocational course chargeable to the conjugal
partnership?
A: Yes, expenses to enable either spouse to commence or complete a professional or vocational course, or
other activity for self-improvement, are chargeable to the conjugal partnership.
LIABILITY RULES SUMMARY
Q: What debts are chargeable to the conjugal partnership of gains?
A:
1. Debts contracted during the marriage for the benefit of the family;
2. Taxes on property held by the conjugal partnership;
3. Expenses of litigation between spouses (unless groundless);
4. Expenses for professional or vocational education of either spouse;
5. Ante-nuptial debts to the extent that the family was benefited.
Q: What debts are chargeable to the separate property of a spouse?
A:
1. Support for illegitimate children;
2. Debts not redounding to the benefit of the family;
3. Liabilities arising from a crime or quasi-delict;
4. Personal debts contracted before or during the marriage when the family did not benefit;
5. Taxes on separate property that is not used by the family.
EFFECT OF BAD FAITH
Q: What is the effect of bad faith on the part of a spouse in CPG?
A: The guilty spouse forfeits his or her share in the net profits of the conjugal partnership.
IMPROVEMENTS ON EXCLUSIVE PROPERTY
Q: What happens if the value of improvement is greater than the value of the land?
A: Under reverse accession, the entire property becomes conjugal.
Q: What happens if the value of the principal property is greater than the improvement?
A: The property remains exclusive, subject to reimbursement upon liquidation.
FRUITS, INCOME, AND ACCESSIONS
Q: Do fruits of exclusive property belong to the conjugal partnership?
A: Yes, the fruits, income, and products of exclusive property belong to the CPG.
Q: What happens to hidden treasure discovered during the marriage?
A: The share of either spouse in the hidden treasure accrues to the conjugal partnership.
REIMBURSEMENT RULES SUMMARY
Q: When is the conjugal partnership entitled to reimbursement?
A: When conjugal funds are used for the exclusive benefit of one spouse.
Q: When is a spouse entitled to reimbursement from the CPG?
A: When separate funds are used for the benefit of the family or conjugal property.
LIVESTOCK RULE
Q: What is the rule on livestock in CPG?
A: Livestock existing at the dissolution of the partnership in excess of the number of each kind brought to
the marriage is conjugal.
ADMINISTRATION AND CONSENT
Q: Who administers the conjugal partnership of gains?
A: The husband and wife jointly administer the conjugal property. (Art. 124, FC)
Q: What happens in case of disagreement in administration?
A: The husband’s decision shall prevail, subject to recourse to the court by the wife for proper remedy.
(Art. 124, FC)
Q: What happens if one spouse is incapacitated or unable to participate in the administration?
A: The other spouse may assume sole powers of administration. (Art. 124, FC)
PRESUMPTION OF CONJUGAL OWNERSHIP
Q: What is the presumption regarding property acquired during the marriage?
A: All property acquired during the marriage is presumed to be conjugal, whether the acquisition appears
to have been made, contracted, or registered in the name of one or both spouses.
XPN: Unless the contrary is proved.
DONATION, ALIENATION, OR ENCUMBRANCE OF CONJUGAL PROPERTY
Q: What is required for the donation of conjugal property?
A: Consent of the other spouse.
XPN: Moderate donations for charity or on occasions of family rejoicing or family distress. (Art. 125,
FC)
Q: What is required for alienation or encumbrance of conjugal property?
A: Written consent of the other spouse.
GAMBLING GAINS AND LOSSES
Q: Are gambling winnings part of the conjugal partnership?
A: Yes, those acquired by either spouse during the marriage by chance, such as winnings from gambling
or betting, belong to the CPG.
Q: Are gambling losses chargeable to the conjugal partnership?
A: No. Losses from gambling shall be borne exclusively by the losing spouse and shall NOT be charged
to the conjugal partnership.
EFFECT OF JUDICIAL SEPARATION OF PROPERTY
Q: What is the effect of judicial separation of property?
A: It terminates the conjugal partnership and vests administration, enjoyment, and disposition in each
spouse over his or her separate property.
CLASSIFICATION OF PROPERTIES
Q: What properties are exclusive of each spouse?
A:
1. Those brought into the marriage as his/her own;
2. Those acquired during the marriage by gratuitous title;
3. Those acquired by right of redemption, barter, or exchange with exclusive property;
4. Those purchased with exclusive money of either spouse.
Q: What properties belong to the conjugal partnership?
A:
1. Those acquired during the marriage by onerous title at the expense of the common fund;
2. Those obtained by labor, industry, work, or profession of either or both spouses;
3. Fruits, products, and income of separate property;
4. Hidden treasure share;
5. Property acquired by chance;
6. Excess livestock at dissolution.
SUMMARY OF LIABILITY SOURCES
Q: From what property is support of the family charged?
A: Conjugal partnership.
Q: From what fund is support of illegitimate children charged?
A: Separate property of the parent.
Q: From what fund are ante-nuptial debts charged?
A: Separate property, unless the family benefited.
SEPARATION IN FACT
Q: Does separation in fact affect the conjugal partnership of gains?
A: NO. Separation in fact shall not affect the regime of conjugal partnership, except that:
1. The spouse who leaves the conjugal home without just cause shall not have the right to be
supported;
2. The spouse who abandons the other loses the right to administer the conjugal partnership. (Art.
100, FC by analogy)
LIQUIDATION OF THE CONJUGAL PARTNERSHIP
Q: When is liquidation of the conjugal partnership required?
A: Upon:
1. Dissolution of marriage;
2. Legal separation;
3. Annulment or declaration of nullity of marriage;
4. Judicial separation of property.
Q: What happens if liquidation is not made?
A: Property shall be governed by the rules on co-ownership.
REIMBURSEMENT RULES
Q: When is reimbursement allowed in CPG?
A: Reimbursement is allowed when:
1. Conjugal funds are used for exclusive property;
2. Exclusive funds are used for conjugal property;
3. Expenses are made for preservation or improvement of exclusive property.
Q: When is reimbursement claimable?
A: Only upon liquidation of the conjugal partnership.
REDUCTION TO WRITING
Q: Should the marriage settlements and modifications be in writing?
A: YES, otherwise they are void.
PROPERTY REGIME IN VOID MARRIAGES
Q: What property regime applies if the marriage is void?
A: The property regime shall be governed by the rules on co-ownership.
Q: Are properties acquired by parties in a void marriage presumed to be co-owned?
A: YES, subject to proof of exclusive ownership.
EFFECT OF PRESUMPTION FAILURE
Q: What happens if no proof exists that property was acquired during the marriage?
A: The presumption of conjugality does not apply.
SUPPORT OBLIGATIONS
Q: From which property is support of the spouses, common children, and legitimate children of
either spouse paid?
A: From the conjugal partnership of gains.
TABLE SUMMARY: EXCLUSIVE VS CONJUGAL PROPERTY
Exclusive Property
Brought into marriage
Conjugal Property
Acquired by onerous title during marriage
Acquired by gratuitous title
Fruits of exclusive property
Purchased with exclusive funds
Income of either spouse
Acquired by right of redemption, barter, or exchange Acquired by chance (gambling, lotto, etc.)
Exclusive Property
Conjugal Property
Pensions, life insurance, retirement benefits
Hidden treasure share
Personal property before marriage
Excess livestock
IMPROVEMENT OF EXCLUSIVE PROPERTY
Q: What is reverse accession?
A: If the cost of the improvement and its value are more than the value of the principal property, the entire
property becomes conjugal.
Q: What is accession in improvement rules?
A: If the cost of the improvement and its value are equal to or less than the value of the principal property,
the property remains exclusive.
Q: In both cases, what is required?
A: Reimbursement upon liquidation.
OBLIGATIONS CHARGEABLE TO THE CONJUGAL PARTNERSHIP OF GAINS (Art. 121,
FC)
Q: What obligations are chargeable to the CPG?
A:
1. Support of the spouses, their common children, and the legitimate children of either spouse;
2. Debts and obligations by one without the consent of the other to the extent of the family
benefited;
3. Debts and obligations contracted during the marriage by an administrator-spouse, both spouses or
one with the consent of the other;
4. Taxes, liens, charges, expenses, including major or minor repairs upon conjugal property;
5. Taxes and expenses for mere preservation made during the marriage of separate property;
6. Expenses for professional, vocational, or self-improvement courses of either spouse;
7. Ante-nuptial debts to the extent the family has been benefited;
8. Value of what is donated or promised to common legitimate children for professional, vocational,
or self- improvement courses;
9. Expenses of litigation between the spouses unless the suit is found to be groundless.
NOTE: If the conjugal partnership is insufficient to cover the foregoing liabilities, spouses shall be
solidarily liable for the unpaid balance with their separate properties.
CHARGES AGAINST SEPARATE PROPERTY THAT MAY BE CHARGED UPON THE
CPG (Art. 122, FC)
Q: What are the requisites before separate property debts may be charged to the CPG?
A:
1. All the responsibilities of the partnership have already been covered; and
2. The spouse who is bound has no exclusive properties or the same are insufficient.
Q: What charges may be made against the CPG under this rule?
A:
1. Personal debts of either spouse contracted before the marriage which did not redound to the
benefit of the family;
2. Support of the illegitimate children of either spouse;
3. Fines and indemnities arising from delicts and quasi-delicts.
Q: What happens if levy was made on the conjugal property by reason of the husband being a
guarantor?
A: The levy is improper. 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 as they redounded to the
benefit of the family.
PROPERTY BOUGHT THROUGH INSTALLMENT (Art. 118, FC)
Q: What are the requisites for installment purchase rules to apply?
A:
1. Property is bought in installments prior to the marriage; and
2. Paid partly from exclusive funds and partly from conjugal funds.
Q: Who owns the property if full ownership vested before the marriage?
A: It belongs to the buyer spouse.
Q: Who owns the property if full ownership vested during the marriage?
A: It belongs to the conjugal partnership.
Q: What rule applies in either case?
A: Any amount advanced by the partnership or by either or both spouses shall be reimbursed upon
liquidation of the partnership.
HIDDEN TREASURE
Q: How is hidden treasure divided between spouses?
A: The share of either spouse in hidden treasure forms part of the conjugal partnership.
PROPERTY ACQUIRED BY OCCUPATION
Q: What properties acquired by occupation belong to the CPG?
A: Those acquired through occupation such as hunting or fishing. (Art. 117, FC)
GAMBLING AND BETTING
Q: What happens to winnings from gambling?
A: They are conjugal property.
Q: What happens to losses from gambling?
A: They are chargeable exclusively to the spouse who incurred them.
ADMINISTRATION AND CONSENT (Art. 124, FC)
Q: Who administers the conjugal partnership?
A: The husband and wife jointly administer the conjugal property.
Q: What happens in case of disagreement in administration?
A: The husband’s decision shall prevail, subject to recourse to the court by the wife for proper remedy.
Q: When may one spouse administer alone?
A: When the other spouse is incapacitated, absent, or unable to participate in the administration.
Q: What is required for the alienation, encumbrance, or disposition of conjugal property?
A: Written consent of the other spouse, or authority of the court.
EFFECT OF LACK OF CONSENT
Q: What is the effect of alienation or encumbrance of conjugal property without consent under the
Family Code?
A: It is void.
DONATIONS OF CONJUGAL PROPERTY
Q: May either spouse donate conjugal property?
A: No, unless the other spouse consents.
XPN: Moderate donations for charity or on occasions of family rejoicing or family distress. (Art. 125,
FC)
PRESUMPTION OF CONJUGAL NATURE
Q: What is the general rule on properties acquired during marriage?
A: All properties acquired during the marriage are presumed conjugal.
XPN: Unless the contrary is proved.
Q: What is the condition sine qua non for the presumption to apply?
A: Proof that the property was acquired during the marriage.
Q: Does registration in the name of only one spouse destroy presumption of conjugality?
A: No. Registration does not confer ownership; it only confirms one already existing.
WHEN PRESUMPTION DOES NOT APPLY
Q: When does the presumption of conjugality NOT apply?
A: When there is no showing that the property was acquired during the marriage.
SEPARATION IN FACT VS LEGAL SEPARATION
Q: Does separation in fact terminate the conjugal partnership?
A: No.
Q: What is the effect of separation in fact on support?
A: The spouse who leaves the conjugal dwelling without just cause shall not have the right to be
supported.
TABLE SUMMARY: CONSENT REQUIREMENTS
Act
Consent Needed?
Administration
No, joint power unless one is incapacitated
Alienation / encumbrance of conjugal property Yes, written consent
Donation of conjugal property
Yes, except moderate donations
Alienation of exclusive property
No consent required
ADMINISTRATION OF THE CPG
Q: What is the general rule on administration of the conjugal partnership?
A: The right to administer the conjugal partnership belongs to both spouses jointly. (Art. 124, FC)
Q: What are the exceptions to joint administration?
A:
1. If one spouse is incapacitated or otherwise unable to participate in the administration of the
common properties – capacitated or able spouse may assume sole powers of administration;
2. 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 the court for sole administration; and
3. During the pendency of a legal separation case, the court may designate either of the spouses as
sole administrator.
Q: What powers are NOT included even if one spouse assumes sole administration?
A:
1. Disposition;
2. Alienation; or
3. Encumbrance of the conjugal or community property.
NOTE: The sale of conjugal property without the consent of the husband is void. If one spouse is
incapacitated or otherwise unable to assume sole powers of administration of the conjugal properties, the
other spouse may assume sole powers of administration. These powers do not include disposition or
encumbrance without authority or written consent of the other spouse. (Aggabao v. Parulan, G.R. No.
165803, 01 Sept. 2010)
DISAGREEMENT IN THE ADMINISTRATION OF THE CPG
Q: What happens in case of disagreement in administration?
A: The decision of the husband shall prevail subject to recourse to the court by the wife for proper
remedy.
NOTE: Prescriptive period for recourse is 5 years from the date of the contract implementing such
decision. (2000, 2002 BAR)
DISSOLUTION OF CPG
Q: What terminates the conjugal partnership?
A:
1. Death of either spouse;
2. Legal separation;
3. Annulment or Declaration of Nullity; or
4. Judicial separation of property during marriage. (Art. 126, FC)
PROCEDURE IN CASE OF DISSOLUTION OF CPG (Art. 129, FC)
Q: What is the procedure in case of dissolution of the conjugal partnership?
A:
1. Inventory of all the properties;
2. Restitution of advances made to each of the spouses;
3. Reimbursement for use of exclusive funds;
4. Debts and obligations of the CP are paid;
5. Delivery of exclusive properties;
6. Payment of losses and deterioration of movables belonging to each of the spouses, unless the
owner had been indemnified from whatever source;
7. Division of the net conjugal partnership;
8. Delivery of the common children’s presumptive legitimes; and
9. Adjudication of conjugal dwelling and custody of common children.
LIQUIDATION OF COMMUNITY PROPERTY IF TERMINATED BY DEATH
Q: When is liquidation made if marriage is terminated by death?
A: Upon termination of marriage by death, the community property shall be liquidated in the same
proceeding for the settlement of the estate of the deceased spouse. (Art. 130, FC)
SUPPORT DURING LIQUIDATION
Q: From what source is support for the surviving spouse and children given during liquidation?
A: Support shall come from the common mass of property and shall be particularly charged against the
fruits, rents, or income pertaining to their shares to the inventoried property.
Q: What if the support exceeds the fruits, rents, or income?
A: The excess shall be deducted from their respective shares as these are deemed advances from the
inventoried property. (Art. 133, FC)
LIQUIDATION IN ABSENCE OF JUDICIAL SETTLEMENT
Q: What happens if there is no judicial settlement proceeding after death?
A: The surviving spouse shall liquidate the community property either judicially or extra-judicially within
1 year from the death of the deceased spouse. (Art. 130, FC)
WHEN COMPLETE SEPARATION OF PROPERTY GOVERNS
Q: When does the system of complete separation of property govern?
A:
1. When it is expressly provided for in the marriage settlement;
2. When it is so decreed by a competent court;
3. Mandatory regime of complete separation of property; and
4. By failure of the surviving spouse to liquidate the ACP or CPG of a previous marriage which has
been terminated by death within the 1-year period required by law prior to contracting another
marriage, the subsequent marriage is mandatorily governed by a regime of complete separation.
EFFECTS IF THE COMMUNITY PROPERTY IS NOT LIQUIDATED
Q: What are the effects if the community property is not liquidated?
A:
1. Any disposition or encumbrance made by the surviving spouse involving community property of
the terminated marriage shall be void; and
2. Should the surviving spouse contract a subsequent marriage, a mandatory regime of complete
separation of property shall govern the p
SEPARATION OF PROPERTY REGIME (Arts. 143-146, FC)
Q: What are the instances when separation of property is allowed?
A:
1. By agreement through marriage settlement; and
2. By judicial order. (Art. 134, FC)
Q: What rules govern the regime of separation of property?
A:
1. Marriage settlement; and
2. Family Code in supplemental character. (Art. 149, FC)
KINDS OF SEPARATION OF PROPERTY
Q: What are the kinds of separation of property as to extent?
A:
a. Total;
b. Partial – In this case, the property not agreed upon as separate shall pertain to the absolute community.
(Art. 144, FC)
Q: What are the kinds of separation of property as to kinds of property?
A:
a. Present property;
b. Future property; and
c. Both present and future property. (Art. 144, FC)
RIGHTS OF SPOUSES UNDER SEPARATION OF PROPERTY
Q: What are the rights of the spouses under the regime of separation of property?
A:
1. Each spouse shall own, dispose of, administer, possess, and enjoy his or her own separate
property, without the need of the consent of the other.
2. Each spouse shall own all earnings from his or her profession, business, or industry and all fruits,
natural, industrial, or civil, due or received during the marriage from his or her separate property.
(Art. 145, FC)
LIABILITIES FOR FAMILY EXPENSES
Q: Who is liable for family expenses under separation of property?
A: GR: Both spouses shall bear the family expenses in proportion to their income. (Art. 146, FC)
XPN: In case of insufficiency or default thereof, to the current market value of their separate properties.
(Ibid.)
REVIVAL OF PREVIOUS PROPERTY REGIME
Q: When may the previous property regime be revived?
A:
• If the spouses opted for voluntary separation of property, the parties may agree to the revival even
in the absence of a reason/ground. However, a subsequent voluntary separation of property is no
longer allowed.
• If the separation of property is for a sufficient cause, the revival of the previous property regime
depends upon the cessation of the ground which was the basis of the judicial order.
•
•
A subsequent judicial separation of property for a sufficient cause may be allowed so long as
there is a new ground to rely on.
The procedure of the revival of the previous property regime is the same as those followed upon
reconciliation of the spouses after the finality of legal separation.
TRANSFER OF ADMINISTRATION OF EXCLUSIVE PROPERTY
Q: How may administration of exclusive property be transferred to the other spouse during the
marriage?
A:
1. By agreement;
o Requisites:
a. By means of a public instrument;
b. To be recorded in the registry of property of the place where the property is located.
2. By order of the court upon petition.
o Based on these grounds:
a. Other spouse becomes the guardian of the other;
b. The other spouse is judicially declared an absentee;
c. Other spouse is sentenced to a penalty which carries with it civil interdiction; or
d. Other spouse becomes fugitive from justice or hiding as an accused in a criminal case.
(Art. 142, FC)
NOTE: For as long as it is proven that said property was acquired during marriage, the presumption of
conjugality will attach regardless of whose name the property is registered. The presumption is not
rebutted by the mere fact that the certificate of title of the property or the tax declaration is in the name of
one of the spouses. (Villanueva v. CA, G.R. No. 143286, 14 Apr. 2004)
PROPERTY REGIME WHEN MARRIAGE IS VOID DUE TO PSYCHOLOGICAL
INCAPACITY
Q: What property regime applies when a marriage is declared null and void on the ground of
psychological incapacity?
A: The property relation between the parties is governed by Art. 147 of the FC. Property acquired by both
spouses through their work and industry shall be governed by the rules on equal co-ownership.
Q: What is the presumption regarding properties acquired during the union?
A: Any property acquired during the union is prima facie presumed to have been obtained through their
joint efforts.
Q: What if one party did not contribute financially to the acquisition of property?
A: Said party shall still be considered as having contributed jointly if their efforts consisted in the care
and maintenance of the family household.
Q: What is the difference from conjugal partnership of gains?
A: The fruits of the couple’s separate property are not included in the co-ownership.