Absolute Community of Property Conjugal Partnership of Gains

Alien married to Filipino CANNOT have any interest in the community or conjugal partnership.
Disqualified from acquiring lands of public domain
Art. 88 Art. 107
Commencement? At precise moment marriage is CELEBRATED.
Stipulation, express or implied, for commencement at any other time shall be VOID
Art. 89 Art. 107
No waiver of rights, interests, shares and effects (RISE) of the ACP/CPG during marriage can be made except in case of judicial
separation of property (JSP). When can waiver take place?
1. upon JSP
2. after dissolution or annulment of marriage
Waiver of RISE should be in a public instrument and recorded as provided for in Art. 77 (register in LCR where marriage contracted
and in the registries of property.
Art. 90 - Co-ownership to apply in all matters not provided Art. 108 – Apply rules on contract of partnership in all matters not
for in conflict with the Code nor with the agreements by the spouses
in their marriage settlement

Art. 105 – code suppletory in application for CPG. Also applies to

WHAT CONSTITUTES ACP and CPG?
Art. 91
1. All properties owned by spouses at time of marriage
2. Those which they may acquire thereafter
(properties acquired during the marriage presumed
community unless proven to be excluded – Art. 93)
Art 95*
3. Acquired by chance such as gambling and betting,
loss borne by spouse alone
*Connote that spouses parted with some valuable
consideration
Ticket given by 3rd party won prize? SEPARATE (considered
income/fruit of that acquired by gratuitous title)
Property acquired using exclusive money/property?
Community property
What are SEPARATE/EXCLUSIVE properties?
Art. 91
1. Provided for in the marriage settlement as exclusive
Art. 92 (GPL)
2. Acquired during marriage by gratuitous title UNLESS
provided by donor, testator or grantor to be
community property.
3. Personal and exclusive use (except: jewelry =
community)
CPG already established before effectivity of code
Art. 106 – H&W place in common fund
(1) proceeds, products, fruits and income from separate prop
and
(2) those acquired through effort or chance
Upon dissolution net GAINS shall be divided equally UNLESS
otherwise agreed in MS
Art. 117 (OLOF-HLA)
1. Acquired by onerous title during marriage at expense of
common fund
2. Obtained from labor, industry, work or profession
3. Acquired through occupation (e.g. fishing, hunting)
4. ALL FRUITS, whether from common or exclusive property
5. Share in hidden treasure which law awards to finder or
owner or property where treasure is found
6. Livestock in excess of number brought of marriage
7. Acquired by chance such as gambling and betting, loss
borne by spouse alone (Art. 123)
Art. 115
8. Amount entitled as a matter of right. Annuity e.g.
pension, retirement benefits
9. Proceeds of life insurance paid fully or partly with
conjugal funds
Art. 116
All property acquired during marriage presumed conjugal unless
contrary is proved.
Ticket given by 3rd party won prize? CONJUGAL (considered
income/fruit of that acquired by gratuitous title)
Exclusive
Art 109 (BGER)
1. Brought to the marriage as his/her own
2. Acquired during marriage by gratuitous title (but fruits =
conjugal!!)
3. Acquired by right of redemption, by barter or exchange
with exclusive property
*ownership vests upon whoever has the RIGHT to
redeem regardless of whether personal or conjugal
 Absolute Community of Property Conjugal Partnership of Gains
4. Property acquired before marriage by either spouse funds were used; liable to CPG for amt used to redeem
who has LEGITIMATE descendants by former his/herproperty
marriage, including fruits and income 4. Purchased with exclusive money of the spouse
Art. 115
5. Gratuity = act of pure liberality
6. Proceeds of life insurance paid out of exclusive fund
Art. 118
Property bought in installment (regardless of who pays)
ownership vested BEFORE the marriage = SEPARATE
ownership vested AFTER marriage = CONJUGAL
Art. 119
Principal in credit belonging to one spouse even if collected during
marriage in partial payments = EXCLUSIVE
Interest on said credit – CONJUGAL
Subject to reimbursement
Art. 120
Cost of improvement (actual cost + “plus value") on separate
property at expense of conjugal funds:
Cost of improvement > value of property at time of improvement =
conjugal
Cost of improvement < value of property at time of improvement =
separate
Subject to reimbursement at time of liquidation = only the time
when ownership vests.
Prior to reimbursement = CPG may use property as exercise of a
USUFRUCT
Prior to liquidation (reimbursement) = owner-spouse still owns as
separate property, cannot be levied upon to satisfy conjugal debt
UNLESS CPG insufficient
Art. 112
Alienation of exclusive property of spouse administered by
another automatically terminates administration over such
property and proceeds of alienation shall be turned over to owner-
spouse
* Limitation to Art. 112: Owner-spouse (party to summary
proceeding) may not revoke judicially approved administration of
present over his specific properties by alienating such property.
Owner-spouse must get (1) consent of administrator-spouse or (2)
approval of court
Art. 113
Property donated or left by will to spouses, jointly and with
designation of DETERMINATE shares shall pertain to each as
EXCLUSIVE property.
Absence of designation, share and share alike without prejudice to
right of accretion.

Art. 114
If donations onerous, amount of charges shall be borne by
exclusive property of done-spouse, even if advanced by the CPG.
GR: In joint donation, one could not accept independently of his
co-donee.
Except: Joint donation in favor of H&W. Right of accretion allowed.
E.g. Donation of ¼ and ¾ share to spouses. One acquires the share
of the other who refused his/her share. Does not apply if specific
determinate properties.
Accretion in property left by will
(1) same inheritance pro indiviso (not divided)
 Absolute Community of Property Conjugal Partnership of Gains
(2) one of the spouses died before the testator, renounces
inheritance or incapacitated
CHARGES and OBLIGATIONS
Art. 94 Art. 121
1. support of spouses, common children and legitimate children of either spouse (Art. 194)
2. debts and obligations contracted during the marriage for the benefit of the ACP/CPG
3. debts and obligations contracted by both or by one of the spouses with the consent of the other (express or implied)
4. taxes, liens, charges and expenses (including major and minor repairs) on community or conjugal property (even w/o
consent)
5. taxes and expenses for mere preservation during marriage of separate property used by the family
6. expenses to commence or complete professional or vocational course or other activity for self-improvement
7. antenuptial debts redounding to benefit of family
8. value donated or promised by BOTH spouses in favor of common legitimate children for EXCLUSIVE purpose of number (5)
above.
9. expenses of litigation between spouses UNLESS suit is found to be groundless
Gen Rule: Debts contracted before marriage as well as fines Art. 122 – Gen Rule: Debts contracted before marriage as well as
and pecuniary indemnities are not chargeable to CPG. fines and pecuniary indemnities are not chargeable to CPG.
10. community property to pay as an advance to be 10. EXCEPT: Conjugal partnership to pay as an advance to be
deducted from share of debtor-spouse upon deducted from share of debtor-spouse upon liquidation:
liquidation: d. antenuptial debts not redounding to benefit of family
a. antenuptial debts not redounding to benefit of e. support of illegitimate children of either spouse
family f. liab incurred from crime or quasi-delict
b. support of illegitimate children of either spouse Conditions:
c. liab incurred from crime or quasi-delict b. charges under Art 121 above have been covered
Conditions: c. absence or insufficiency of exclusive property of
a. absence or insufficiency of exclusive property of debtor-spouse
debtor-spouse

 If ACP/CPG insufficient to pay for (1) to (9), spouses shall be SOLIDARILY liable for unpaid balance with their separate
properties. (Art. 94 and 121)
 Debts or obligations contracted during marriage without consent of one of the spouses will make the ACP/CPG liable only
to the extent the family benefitted.
 Exercise of profession or family business presumed to redound for benefit of family thus, chargeable to ACP/CPG.
 ACP/CPG may be liable for suit not involving H&W if the same is for the benefit of the family.
ADMINISTRATION and ENJOYMENT
Art. 96 Art. 124
Both spouses jointly. Disagreement? Husband’s decision will prevail subject to recourse by wife to courts (summary proceeding) for
remedy 5 years from date of the contract implementing such decision
If one spouse incapacitated or unable to participate in administration of common properties, other souse may assume SOLE
powers of administration. DO NOT include powers of disposition or encumbrance—such requires:
1. authority of court OR
2. written consent of the other spouse
Disposition or encumbrance VOID in absence of either of the two above (voidable only prior to Family Code). Construed as a
continuing offer on the part of the consenting spouse and the 3 rd party which may be perfected as binding contract upon
acceptance of other spouse or authorization of court before such offer is withdrawn.
 Administration of property may be validly delegated to only one spouse in a marriage settlement executed prior to
marriage
 Husband also allowed to go to court if disagrees with wife’s decision
 Unequal sharing provided for in marriage settlement does no affect joint administration
 Repairs for preservation – may act without consent of the other but, if practicable, should first notify
 Expenses to improve or embellish – decided by co-owners.
 CANNOT alter without consent of the other. Gen Rule: will be SOLELY liable unless ratified by the other spouse. Exception:
redounded to benefit of family, chargeable to ACP
EFFECT of ALIENATION and ENCUMBRANCE
 Without knowledge AND consent = NULL and VOID. Action to nullify contract will NOT have any prescriptive period.
Exception: TCT indicates person is single, innocent purchaser-for-value who relies on official annotation in TCT in good
 Absolute Community of Property Conjugal Partnership of Gains
faith is protected by law and CANNOT be voided. Remedy of aggrieved spouse = compel erring spouse to account for
proceeds of sale as ACP/CPG. If buyer not in good faith = VOID.
 With knowledge but WITHOUT consent = ANNULABLE within 5 years from date of contract. If ratified (express or implied),
cannot anymore seek annulment even within prescriptive period. May nullify entire contract and not just share/portion.
EFFECT of INCAPACITY of ONE of the SPOUSES on ADMINISTRATION
 Involves situation where other spouse is (1) absent or (2) separated or (3) abandoned the other or (4) consent is withheld.
 If “incompetent” – comatose, stroke, cerebrovascular accident, etc. Remedy is judicial GUARDIANSHIP proceeding NOT
summary proceeding. Other spouse becomes administrator and must perform duties of a guardian. Requirement to sell
real property: observe procedure for sale of ward’s ESTATE required of judicial guardians.
Art. 97
Either may dispose by will his/her interest or share in the
community property
*should not affect legitime of compulsory heirs
*only interest/share may be disposed by will and not a
specific property
Art. 98 Art. 125
Neither may donate community/conjugal property without consent of the other. May make moderate donations from community
property without consent of other for charity or occasions of family rejoicing or distress.
DISSOLUTION
Art. 99 Art. 126
When ACP/CPG terminates?
1. Death of either spouse – extinguish civil personality
2. Decree of legal separation – one of the effects of LS is dissolution and liquidation of ACP/CPG, guilty spouse forfeits share
in net profits subject to reconciliation and revival of property regime
3. Marriage is annulled of declared void – under Art. 40 (no judicial declaration of nullity). Void marriage generally not
governed by ACP/CPG but by Art. 147 (capacitated to marry) or 148 (all other void marriages not falling under 147 and
Art. 40)
4. In case of judicial separation of property during marriage under Art 134 to 138 (voluntary or involuntary)
5. Reappearing spouse or an interested person under Art. 41 files affidavit of reappearance to terminate subsequent
marriage of present spouse validly contracted with another person.
Art. 100 Art. 127
Separation in fact b/w H&W shall not affect the ACP/CPG EXCEPT:
1. Spouse who leaves conjugal home or refuses to live therein W/O JUST CAUSE shall not have the right to be supported.
2. When consent of one spouse required by law, judicial authorization shall be obtained in a summary proceeding
3. In absence of sufficient community/conjugal property, separate property of spouses SOLIDARILY liable for support of
family. Spouse present, upon proper petition in a summary proceeding, shall be given judicial authority to administer or
encumber any specific SEPARATE property of the other spouse and the use of fruits and proceeds thereof to satisfy his
share (e.g. reimbursement for expenses to support family paid by .
 Spouse who leaves with just cause shall still have the right to support from ACP/CPG
 But if with fault or without just cause, cannot be supported
 ACP/CPG still liable expenses redounding to the benefit of the family incurred by the spouse who left home
 Any of the spouses (whether or not he/she was the one who left the conjugal home without just cause), can seek judicial
relief/authorization
Art. 101 Art. 128
Spouse (1) abandons the other without just cause or (2) fails to comply with his/her obligations to the family.
Aggrieved spouse may petition court for:
1. receivership
2. judicial separation of property
3. authority to be sole administrator of the ACP/CPG, subject to precautionary conditions court may impose
Obligations refer to (1) marital (2) parental or (3) property relations.
Deemed to have abandoned when left conjugal dwelling without intention of returning. 3 mos. left or failed to give info on
whereabouts is prima facie presumption of no intention to return to conjugal dwelling.
 Abandonment = there should be absolute cessation of marital relations, duties, and rights with the intention of perpetual
separation; financial and moral desertation and not merely physical estrangement
 If abandonment >1 year, may be a ground for LS (Art 55(10))
 Failure to comply with family obligations = ABUSE = willful and utter disregard of interest of the partnership evidenced by
repetition of deliberate acts and/or omissions prejudicial to the latter; should not be an isolated event
 Absolute Community of Property Conjugal Partnership of Gains
LIQUIDATION
Art. 102 - Upon dissolution of ACP: Art. 129 - Upon dissolution of CPG:
1. Inventory listing separately ACP and exclusive 1. Inventory listing separately CPG and exclusive properties
properties of each spouse of each spouse
2. Debts and obligations paid out from ACP. 2. Amounts advanced by CPG for payment of personal debts
Insufficiency = spouses solidarily liable with their and obligations of either spouse to be credited as an asset
separate properties under Art. 94 of the CPG
3. Remainder of exclusive properties to be delivered to 3. Each spouse reimbursed for use of exclusive fund in
each of them acquisition of property whose ownership vested with the
4. Net remainder of ACP to be divided equally b/w conjugal partnership
H&W UNLESS (1) there is different division agreed 4. Debts and obligations of CPG to be paid out of conjugal
upon in the MS or (2) there has been a voluntary assets. Insufficiency? spouses solidarily liable with
waiver of such share (Art. 89). separate properties (Art. 121 (2))
Net profits = increase in MV b/w time of celeb and 5. Remainder of exclusive properties, delivered to each of
MV at time of dissolution (under Art 43(2) and them
63(2)) 6. Loss or deterioration of movables used for benefit
5. Delivery of presumptive legitimes of common belonging to other spouse shall be paid for conjugal funds
children in accordance with Art. 51 (for 40 & 45 UNLESS: (1) owner had been indemnified from whatever
ONLY) source (e.g. insurance)
6. Unless otherwise agreed upon, conjugal dwelling 7. Net remainder of conjugal partnership shall constitute
and lot to be adjudicated to spouse with whom profits to be divided equally b/w H&W UNLESS different
majority of the children choose to remain proportion or division agreed upon in marriage
If below 7 years, with mother UNLESS court has settlement or there is voluntary waiver of share
decided otherwise. 8. Delivery of presumptive legitimes of common children in
If no majority, consider best interest of children accordance with Art. 51 (for 40 & 45 ONLY)
9. Unless otherwise agreed upon, conjugal dwelling and lot
to be adjudicated to spouse with whom majority of the
children choose to remain
If below 7 years, with mother UNLESS court has decided
otherwise.
If no majority, consider best interest of children
Art. 103 Art. 130
Termination of marriage by death = ACP/CPG liquidated in same proceeding for settlement of estate of deceased.
Surviving spouse to liquidate ACP/CPG judicially or extra-judicially within 1 year from death of spouse.
If not liquidation made within 1 year, any disposition or encumbrance involving ACP/CPG shall be VOID.
Subsequent marriage contracted by surviving spouse without liquidation = valid but under mandatory regime of complete
separation of property
Art. 104 Art. 131
Liquidate 2 or more marriages contracted simultaneously by same person before effectivity of code.
Capital, fruits and income of each community to be proved according to rules of evidence.
If there is doubt, divide among diff. communities in proportion to capital and duration.

1st scenario: 2nd scenario:

Equal duration
FMV of total assets = 15K
Divide equally = 7.5K for heirs of each
marriage
3rd scenario:
Same duration
FMV of total assets = 15K
Assets of each marriage known:
1st – 1K
2nd – 2k
Prorate accdg to value of assets:
1st marriage – 3K (1/3 of 15K)
2nd marriage – 10K (2/3 of 15K)
1st marriage – 2yrs; 2nd marriage – 3yrs
FMV of total assets = 15K
Prorate accdg to duration:
1st marriage – 6k (15K * 2/5)
2nd marriage – 9k (15K * 3/5)
4th scenario:
Duration different = 2 and 3 years,
respectively
Assets equal = 5K
Prorate based on duration
1st marriage – 6k (15K * 2/5)
2nd marriage – 9k (15K * 3/5)
 Absolute Community of Property Conjugal Partnership of Gains
th
5 scenario:
Duration different = 2 and 3 years,
respectively
Assets different = 1K and 2K respectively,
Prorate based on D*A:
1st marriage = 3.75K (2/8 * 15K)
2nd marriage = 11.25K (6/8 * 15K)

 If there are 2 or more CPG of 2 marriages = subsequent partnership cannot be liquidated without liquidation of prior one.
Art. 132
Rules of Court on administration of estates of deceased shall be
observed in appraisal and sale of property of CPG and other
matters not expressly determined in this Chap.
Art. 133
From common mass of property, support to be given to surviving
spouse and children during liquidation of inventoried property
until what belongs to them is delivered—should not exceed fruits
or rents pertaining to them. Excess to be taken from part of
property given to them as their separate property = deducted from
inheritance to be received.