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Property Relations; Unions without Marriage (1997)

Luis and Rizza, both 26 years of age and single,

live exclusively with each other as husband and
wife without the benefit of marriage, Luis is
gainfully employed, Rizza is not employed,
stays at home, and takes charge of the household
chores. After living together for a little over
twenty years, Luis was able to save from his
salary earnings during that period the amount of
P200,000.00 presently deposited in a bank. A house
and lot worth P500,000.00 was recently purchased
for the same amount by the couple. Of the P500.000.00
used by the common-law spouses to purchase the property,
P200.000.00 had come from the sale of palay harvested
from the hacienda owned by Luis and P300,000.00 from
the rentals of a building belonging to Rizza. In fine,
the sum of P500.000.00 had been part of the fruits
received during the period of cohabitation from
their separate property, a car worth P100.000.00.
being used by the common-law spouses, was donated
Just months ago to Rizza by her parents. Luis and Rizza
now decide to terminate their cohabitation, and
they ask you to give them your legal advice on the following:
(a) How, under the law should the bank deposit of
P200,000.00 the house and lot valued at P500.000.00
and the car worth P100.000.00 be allocated to them?
b) What would your answer be (to the above question) had
a) Who will be entitled to the house and lot? (3%)
Luis and Rizza been living together all the time, ie., since twenty years ago, u
nder a valid marriage?
a) Art. 147 of the Family Code provides in part that when a man and a woman who
are capacitated to marry each other, live exclusively with each other as husband
and wife without the benefit of marriage or under a void marriage, their wages
and salaries shall be owned by them in equal shares and the property acquired by
both of them through their work or industry shall be governed by the rules of c
oownership. In the absence of proof to the contrary, properties acquired while th
ey lived together shall be presumed to have been obtained by their Joint efforts
, worker Industry, and shall be owned by them in equal shares. A party who did n
ot participate in the acquisition by the other party of any property shall be de
emed to have contributed jointly in the acquisition thereof if the former's effo
rts consisted in the care and maintenance of the family and of the household. Th
us: 1) the wages and salaries of Luis in the amount of P200,000.00 shall be di
vided equally between Luis and Rizza. 2) the house and lot valued at P500.000.00
having been acquired by both of them through work or industry shall be divided
between them in proportion to their respective contribution, in consonance with
the rules on co-ownership. Hence, Luis gets 2\5 while Rizza gets 3\5 of P500.000
.00. 3) the car worth P100,000.00 shall be exclusively owned by Rizza, the same
having been donated to her by her parents.