Title IV – Property Relations between Husband and Wife

Chapter 1: General Provisions

Article 74. The property relations between husband and wife shall be governed in the following order:

1. By marriage settlements executed before the marriage

2. By the provisions of this Code; and
3. By the local customs. (118)

Article 75. The future spouses may, in the marriage settlements, agree upon the regime of ABSOLUTE
COMMUNITY, CONJUGAL PARTNERSHIP OF GAINS, COMPLETE SEPARATION OF PROPERTY, or ANY
OTHER REGIME. In the absence of a marriage settlement, or when the regime agreed upon is void, the
system of ABSOLUTE COMMUNITY of property as established in this Code shall govern. (119a)

Article 76. In order that any modification in the marriage settlement may be valid, it must be made
BEFORE THE CELEBRATION of the marriage, subject to the provisions of Articles 66, 67, 128, 135 and
136. (121)

Article 77. The marriage settlements and any modification thereof shall be IN WRITING, SIGNED BY
THE PARTIES and executed BEFORE THE CELEBRATION of the marriage. They shall NOT PREJUDICE
THIRD PERSONS unless they are REGISTERED IN THE LOCAL CIVIL REGISTRAR where the marriage is
recorded as well in the PROPER REGISTRIES OF PROPERTY. (122a)

Property Relations and Ante-Nuptial Agreements

 Husband and wife cannot sell property to each other, except when a separation of property was
agreed upon or when there has been a judicial separation of property
 There shall be right of accretion unless donor has otherwise provided
 As to property relations, husband and wife shall be primarily governed by their marriage
settlement
o Must be in writing, signed by parties, and made prior to celebration of marriage
o In writing, not just for enforceability, but also for validity
 Oral marriage settlement is void and cannot be ratified by any claim of partial
executing or absence of objection
 Can agree on any arrangement in marriage settlement that is not contrary to law and public
policy and is within the limits provided by Family Code
o Absolute community of property, division will not be equal
o Separation of property, refer to present or future property or both, may be total or
partial (pertains to the absolute community)
 Cannot stipulate that conjugal partnership of gains or absolute community of property will start
at a time other than precise moment of celebration of marriage
o Void under Art. 88 and 107
 Cannot stipulate that they can make substantial donation to each other during marriage
o Void under Art. 87
 If marriage terminated by death of one spouse and there has been no liquidation of properties
of previous marriage, surviving spouse, if decided to remarry, cannot execute marriage
settlement providing for regime other than complete separation of property
 o Article 103 and 130 provide that in such remarriage, property regime governing
subsequent marriage must be the separation of property regime
 Arrangement, as agreed upon by the parties, may stipulate:
o Conjugal partnership of gains
o Complete separation of property
o Any other regime
o No marriage settlement or if void, absolute community of property
 Parties may design their own property regime not in violation of any law
o “Mixed-Up Property Regime”
 Spouse shall retain own exclusive property, all their salaries during marriage but
will consider any real estate purchased from the same as commonly owned
while all personal properties as exclusively owned

Prejudice to Third Parties

 To bind third persons, marriage settlement and any modification thereof must be registered in
the local civil registrar where the marriage contract is recorded and in the proper registries of
property
 No marriage settlement, property regime shall be absolute community of property
o There is nothing to register with the local civil registrar and proper registries of
properties
 Effect of transformation of property by operation of law from being exclusively-owned to one
which is co-owned because it has become part of the absolute community of property may have
different effects on a third party, despite the fact that there is no marriage settlement to
register
 If property itself is registered in proper civil registry and has corresponding valid Transfer
Certificate of Title (TCT), a third person can rely on annotations or entries on the TCT such that
if a married man cased the description “single” in the TCT and through continuous
misrepresentation that he is single, sells the property to an innocent purchaser for value and
there are no other indicators for said purchaser to be suspicious, the transaction cannot be
annulled

Fairness in Marriage Settlement

 Must exercise a high degree of good faith and candor in all matters bearing upon the contract
 In weighing the fairness and reasonableness of the provision, ff. must be considered:
o Relative situation of the parties
o Their respective ages
o Health and experience
o Their respective properties
o Their family ties and connections
o Spouse’s needs
o Factors that tend to show that agreement was understandingly made
 Measured as of the time of the execution of the agreement
  Even if agreement is not reasonable, can be maintained if shown that disadvantaged spouse,
when she signed, had some understanding of her rights to be waived or prejudiced or any
many affected by the agreement
 Spouse must have signed freely, voluntarily, intelligently and preferably upon competent and
independent advice
o Burden of proof of invalidity of a pre-nuptial agreement is on spouse alleging it
 If on its face, contract is unreasonable, a presumption of concealment arises, burden shift and
it is incumbent upon the other party to prove validity

Exceptions

 Last paragraphs of Article 103 and 130 of Family Code provide for exceptions for general rule
that ante-nuptial must be in writing and in absence of ante-nuptial agreement of if void,
absolute community of property regime shall prevail
 In even that marriage is terminated by death of one spouse and surviving spouse remarries w/o
initiation judicial or extrajudicial settlement of properties of previous marriage w/in 1 year of
death, a mandatory regime of complete separation of property shall govern the property
relations of the subsequent marriage

Modifications

 General rule: In order that any modification in marriage settlements may be valid, it must be
made before the celebration of marriage, in writing and signed by parties
o Exception, modification can be made after marriage ceremony, but such post-marriage
modification shall need judicial approval and refer to instances in Articles 66, 67, 128,
135 and 136 of Family Code
o Otherwise, modification is invalid
 Revival of former property regime between reconciling spouses after judicial decree of legal
separation has been rendered can be made only via a court order recorded in proper civil
registries
 Cases of abandonment or failure to comply w/ marital obligations, court, on petition of
aggrieved spouse, may issue decree of judicial separation of property
o Art. 135 further provides for grounds for judicial separation of property
 Spouses may file voluntary and verified petition in court to modify property regime into a
separate community of property
 Separation of property cannot be effected by the mere execution of a contract or agreement
of the parties but by the decree of the court approving the same

Local Customs

 Custom defined “as a rule of conduct formed by repetition of acts uniformly observed as a
social rule, legally binding and obligatory.”
o Law requires that “a custom must be proved as a fact, according to the rules of
evidence”
 Stipulate that local custom shall apply or that absolute community of property regime shall not
govern their property relations but fail to stipulate what property regime shall be applied
 o Recourse would be to apply local custom
o Under Art. 74, agreement between parties, if contained in valid marriage settlement,
shall be prevail
o In this situation, although parties executed marriage settlement, only stipulation made
was that absolute community regime shall not apply or that local customs shall apply
 No particular property regime was designated
 Local custom was expressly provided
 If marriage settlement provides neither absolute community of property nor local custom shall
prevail, w/o particularizing any other valid property regime, such provision is void
o Contravenes mandatory provision under Art. 74 provides that acts executed against
provisions of a mandatory law shall be void
 Absolute community of property shall prevail

Article 78. A minor who according to law may contract marriage may also execute his or her marriage
settlements, but they shall be valid only if the person designated in Article 14 to give consent to the
marriage are MADE PARTIES to the agreement subject to the provisions of Title IX of this Code. (120a)

Article 79. For the validity of any marriage settlements executed by a person upon whom a SENTENCE
OF CIVIL INTERDICTION has been pronounced or who is subject to any other DISABILITY, it shall be
INDISPENSIBLE for the GUARDIAN appointed by a competent court to be MADE A PARTY THERETO.
(123a)

Consent by those Designate by Law.

 R.A. No. 6809 (Dec. 18, 1989)

o Person attains age of majority upon reaching 18 years of age
o Below 18 is a minor
 Marriage contracted by person below 18 years is void ab initio (Art 35(1))
o “a minor who according to law may contract marriage” in Art. 78 has been impliedly
repealed considering that no minor may contract a valid marriage
 18-year old person may valid execute a marriage settlement w/o consent of persons designated
in Art. 14 of Family Code upon being emancipated
o Save exceptions established by existing laws in special cases
 Art. 79 makes it mandatory that, in case a person upon whom a sentence of civil interdiction
has been pronounced or subject to any other disability, it shall be indispensable for the
guardian appointed to be made a party to the written marriage settlement
o Art 34 of RPC: Civil interdiction shall deprive offender during the time of his sentence of
the rights of parental authority, or guardianship, either as to the persons or property of
any ward, of marital authority, of the right to manage his property, and of the right to
dispose of such property by any act or conveyance inter vivos.
 Art. 41 of RPC provides penalties of reclusion perpetua and reclusion temporal meted on any
accused found guilty of a crime shall carry w/ them, as accessory penalties, that of civil
interdiction for life or during period of the sentence as the case may be, and that of perpetual
absolute disqualification which the offender shall suffer even though pardoned as a principal
penalty, unless expressly remitted in the pardon
Article 80. In the ABSENCE of a CONTRARY STIPULATION TO THE MARRIAGE SETTLEMENT, the
property relations of the spouses shall be governed by PHILIPPINE LAWS, REGARDLESS OF PLACE OF
CELEBRATION of the marriage and RESIDENCE.

This rule shall NOT APPLY:

1. Where both spouses are ALIENS

2. With respect to the EXTRINSIC VALIDITY of contracts AFFECTING PROPERTY NOT SITUATED IN
THE PHILIPPINES and EXECUTED IN THE COUNTRY WHERE THE PROPERTY IS LOCATED
3. With respect to the EXTRINSIC VALIDITY of contracts entered into the PHILIPPINES but
affecting PROPERTY SITUATED IN A FOREIGN COUNTRY whose laws require DIFFERENT
FORMALITIES for its extrinsic validity. (124a)

Rules Governing Property Relations

 Property relations of spouses can be governed by the will of parties provided that agreement
will not be contrary to law or public policy and it should be within the limits provided in the
Family Code (Article 1).
 Contracting parties are Filipino
o Property relations governed by Philippine laws in absence of any agreement to the
contrary
o Rule applies even if they are married abroad or even if they reside abroad
 However, under Art. 16 of Civil Code, real and personal property shall always be subject to the
law of the country where it is situated
o Extrinsic validity of the contract whether executed here or abroad, will not be
governed by Philippine laws
o If contract executed here, laws of the country where the property is located may
govern the extrinsic validity of the contract
 Not applicable when both spouses are aliens married in the Philippines

Article 81. EVERYTHING STIPULATED IN THE SETTLEMENTS or contracts referred to in the preceding
articles in consideration of a FUTURE MARRIAGE, including DONATIONS BETWEEN PROSPECTIVE
SPOUSES made therein, shall be rendered VOID IF THE MARRIAGE DOES NOT TAKE PLACE. However,
stipulations that DO NOT DEPEND upon the CELEBRATION of the marriage shall be VALID. (125a)

Efficacy of Marriage Settlement

 Consideration of marriage settlement is marriage itself

o If marriage does not take place, marriage settlement is void
 Provisions in a marriage settlement are separable
o If some provisions are invalid but do not affect the rest of the provisions, only said
invalid provision will be rendered ineffectual while the rest continue to remain
enforced
 Stipulations that do not depend upon celebration of marriage shall be valid
o Provision to support common child of contracting parties
 Is valid regardless of marriage celebration because parent is obliged to support
child whether legitimate or illegitimate
Chapter 2: Donations by Reason of Marriage

Article 82. Donations BY REASON OF MARRIAGE are those which are made BEFORE ITS CELEBRATION,
in consideration of the same, and in FAVOR OF ONE OR BOTH of the future spouses.

Article 83. These donations are governed by the rules on ORDINARY DONATIONS established in Title
III of Book III of Civil Code, insofar as they ARE NOT MODIFIED by the following Articles. (127a)

Article 84. If the future spouses AGREE UPON A REGIME OTHER THAN ABSOLUTE COMMUNITY OF
PROPERTY, they CANNOT DONATE to each other in their marriage settlements MORE THAN 1/5 of
their PRESENT PROPERTY. Any excess shall be considered VOID.

Donations of future property shall be governed by the provisions on TESTAMENTARY SUCCESSION and
the FORMALITIES OF WILLS. (130a)

Donation Propter Nuptias

 Donation by reason of marriage is known as donation propter nuptias

o Without onerous consideration
 Marriage being merely the occasion or motive for the donation, not its “causa”
o Remain subject to reduction for inofficiousness upon donor’s death, if they should
infringe the legitime of a forced heir
 Indispensable that such a donation must be made prior to celebration of marriage, in
consideration of the same and must be in favor of one or both spouses
 Deed of donation executed before marriage by one of the spouses, which among other things
provide:
o Marriage would have to be childless
o One of spouses would have to die before donation would operate
o Donation was made not in favor of wife but rather in favor of those who acted as her
parents and raised her from girlhood to womanhood in the absence of her father
o NOT MADE IN CONSIDERATION OF MARRIAGE
 Donations excluded are those:
o Made in favor of the spouses after the celebration of the marriage
o Executed in favor of the future spouses but not in consideration of marriage
o Granted to persons other than the spouses even though they may be founded on the
marriage
 Donations propter nuptias can even be contained in a marriage settlement
o Donee must accept donation personally, or through an authorized person w/ a special
power for the purpose, or with a general or sufficient power; otherwise the donation
shall be void
o Acceptance must be made during lifetime of donor and done
o Donation of a movable may be made orally or in writing
 Oral donation requires simultaneous delivery of the thing or of the document
representing the thing donated
 If value of personal property donated exceeds P5,000, donation and the acceptance shall be
made in writing
o Otherwise, void
  In order for the donation of an immovable may be valid, it must be made in a public document
o Specifying therein the property donated and the value of the charges which the donee
must satisfy
o Acceptance may be made in same deed of donation or in a separate public document,
but it shall not take effect unless it is done during the lifetime of the donor
 If acceptance is made in a separate instrument, donor shall be notified thereof
in an authentic form and this step shall be noted in both instruments
 Donations propter nuptias shall be governed by the provisions on testamentary succession and
the formalities of a will
o Document containing the donation of future property may be handwritten
 Must entirely be handwritten, dated and signed by the donor
o If not handwritten
 Must be subscribed at the end thereof by the donor, himself, or the donor’s
name written by some other person in his presence, and by his express
direction, and attested and subscribed by 3 or more credible witnesses in the
presence of the donor and of one another

Article 100. The separation in fact between husband and wife shall not affect the regime of absolute
community except that:

1. The spouse who leaves the conjugal home or refuses to live therein, w/o just cause, shall not
have the right to be supported
2. When the consent of one spouse to any transaction of the other is required by law, judicial
authorization shall be obtained in a summary proceeding
3. In the absence of sufficient community property, the separate property of both spouses shall
be solidarily liable for the support of the family. The spouse present shall, upon proper
petition in a summary proceeding, be given judicial authority to administer or encumber any
specific separate property of the other spouse and use the fruits or proceeds thereof to satisfy
the latter’s share. (178a)

Effect of Separation in Fact

 Absolute community of property will not be affected by separation in fact between spouses
o Absolute community will still be liable for all obligations incurred by either spouses for
benefit of the family
 Shall be held liable for all charges in Art. 94
 Separate property of separated spouses shall be solidarily liable for obligations incurred for
benefit of family in even absolute community of property is insufficient to pay off obligations
 Exceptions are provided in Art. 100

No Support

 Spouse who leaves conjugal home or refuses to live therein, w/o just cause, shall not have the
right to be supported from absolute community of property
o Fault must be proven
 Mere fact of separating from conjugal roof does not constitute reason for
annulling right of support
 o If left w/ valid cause, he or she can still be supported from absolute community of
property
 Mere separation de facto will not affect absolute community of property
 In accordance w/ Article 94, community property can still be held liable for
support of spouse and expense to enable spouse to commence or complete
vocational course for self-improvement
 Absolute community of property can still be held liable for all obligations incurred by separating
spouse that may redound to the benefit of the family (Art. 94)
o With or without valid reason as long as it redounded to benefit of family

Court Authorization

 When consent of one spouse is required in any transaction by law, judicial authorization shall
be obtained in a summary manner
o Any of the spouses, whether he or she was the one who left w/o valid cause, can seek
judicial relief
 Ex: Spouse, who left in bad faith, needing money to pay school matriculation
fees of common child need to sell car that belongs to absolute community of
property can ask for judicial declaration if innocent spouse does not want to
give consent to the sale

Solidary Liability and Administration of Separate Property

 Article 100(3) provides that, in the absence of sufficient absolute community property, the
separate property of both spouses shall be solidarily liable for support of the family
o Reiteration of last paragraph of Art. 94
o Art. 70 provides that spouses are jointly responsible for support of family and expenses
shall be paid from the community property and in the absence thereof, from the
income or fruits of the separate properties
 To enforce solidary nature of separate properties
o Spouse present, upon proper petition in court, be given judicial authority through
summary proceedings to administer or encumber any specific property of the other
spouse and use the fruits or proceeds thereof to satisfy the latter’s share
o Only the present spouse is given standing by law to file this petition
 Authority granted to present spouse limited to one purpose: enable present
spouse to satisfy the other spouse’s share in the obligations used to support
the family which should be totally paid by the absolute community of property
had it not been for its insufficiency
o Example: Creditor that paid for common children’s matriculation fees can go against
separate property of present spouse and spouse who left conjugal home
 If separated de facto, creditor can go against separate properties of spouse at
the same time or against separate properties of one of them only
 If latter, the same should pay total amount due to creditor
o Present spouse can seek reimbursement from separate
property of the spouse with respect to his or her share in
obligation
 o Example: If creditor were paid P1000 and if payment obtained
from separate property of present spouse, present spouse can
seek reimbursement of P500 from separate properties of other
spouse
o File a judicial summary proceeding for him or her to be made
administrator of the other spouse’s separate properties and to
use the fruits or proceeds thereof to pay for reimbursement of
P500 due him or her (present spouse)

Article 101. If a spouse w/o just cause abandons the other or fails to comply w/ his or her obligations
to the family, the aggrieved spouse may petition the court for RECEIVERSHIP, for JUDICIAL
SEPARATION OF PROPERTY, or for authority to be the SOLE ADMINISTRATOR of the ABSOLUTE
COMMUNITY OF PROPERTY, subject to such precautionary conditions as the court may impose.

The obligations to the family mentioned in the preceding paragraph refer to MARITAL, PARENTAL or
PROPERTY relations.

A spouse is deemed to have abandoned the other when he or she has left the conjugal dwelling
WITHOUT INTENTION OF RETURNING. The spouse who has left the conjugal dwelling for a period of 3
MONTHS or has failed within the same period to GIVE ANY INFORMATION as to his or her
WHEREABOUTS shall be PRIMA FACIE presumed to HAVE NO INTENTION IN RETURNING to the
conjugal dwelling.

Abandonment

 Abandonment under Art. 178 of Civil Code superseded under Art. 128 of Family Code which
refers to conjugal partnership of gains which in turn is exactly the same as Art. 101 referring to
absolute community of property
 Abandonment implies departure by one spouse w/ the avowed intent to never return, followed
by prolonged absence w/o just cause and without in the meantime providing in the least for
one’s family although able to do so
o Absolute cessation of marital relations, duties, and rights w/ intention of perpetual
separation
 Abandonment must not only be physical estrangement but also amount to financial and moral
desertion

Failure to Comply with Family Obligations

 Article 101 will only apply if either of the spouses fail to comply with his or her obligations to
the family
o Refers to marital, parental or property relationship
 Abuse of designated administrator of his or her administration, reliefs provided
in Art. 101 can be availed
 Mere refusal to inform other spouse of progress of family business does
not constitute abuse
 If negligence or inefficiency is not merely isolated, but is constantly done w/o any effort to
improve, relieves provided for in Art. 101 and 128 may be availed of by aggrieved spouse
 o If constitutes psychological incapacity, marriage can be void under Art. 36
o If abandonment for more than 1 year, filing of legal separation

Section 6. LIQUIDATION OF THE ABSOLUTE COMMUNITY ASSETS AND LIABILITIES

Article 102. Upon dissolution of the absolute community regime, the following procedures shall apply:

1. An INVENTORY shall be prepared, listing separately all properties of the absolute community
and the exclusive properties of each spouse
2. The DEBTS AND OBLIGATIONS of the ABSOLUTE COMMUNITY shall be PAID OUT OF ITS
ASSETS. In case of insufficiency of said assets, the spouses shall be solidarily liable for the
unpaid balance w/ their separate property in accordance w/ provisions of the 2nd paragraph of
Article 94
3. Whatever REMAINS of the EXCLUSIVE PROPERTIES of the spouses shall thereafter be
DELIVERED to each of them
4. The NET REMAINDER of the properties of the absolute community shall CONSTITUTE ITS NET
ASSETS which shall be DIVIDED EQUALLY between husband and wife, unless a different
proportion or division was agreed upon in the marriage settlements, or unless there has been
a VOLUNTARY WAIVER of such share as provided in this Code. For purposes of COMPUTING
THE NET PROFITS subject to forfeiture in accordance w/ Articles 43, No. 2 (either spouse
contracting in bad faith) and 63, No. 2 (legal separation and the forfeiture of offending
spouse), the said profits shall be the INCREASE IN VALUE BETWEEN MARKET VALUE of the
community at the TIME OF THE CELEBRATION OF THE MARRIAGE and the MARKET VALUE AT
THE TIME OF ITS DISSOLUTION.
5. The PRESUMPTIVE LEGITIMES of the COMMON CHILDREN shall be delivered upon partition, in
accordance w/ Art. 51
6. Unless otherwise agreed upon by the parties, in the partition of properties, the CONJUGAL
DWELLING AND THE LOT on which it is situated shall be adjudicated to the SPOUSE WITH
WHOM THE MAJORITY OF THE CHILDREN CHOOSE TO REMAIN. Children below the age of 7
years are deemed to have chosen the mother, unless 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. (n)

Liquidation Procedure

 Dissolution occurs upon happening of events enumerated in Art. 99

 Art. 102 states in detail manner by which the affairs of the absolute community of property
shall be settled upon dissolution or after it has been dissolved
o In voluntary judicial separation of property, liquidation may be governed by agreement
of parties provided that the Court approves the same

Inventory

 All properties or assets at the time of the dissolution, whether belonging to the absolute
community of property or separate property of the spouses, must be inventoried
o Must be itemized, and usually, valued
  In appraisal, not the purchase but the market or, in default thereof, the assessed value at the
time of liquidation that must be taken into account

Payment of Debts

 After inventory, all debts for which the absolute community of property is liable shall be paid
o All obligations enumerated in Art. 94 of Civil Code
 Under Art. 94(9), payments made by absolute community of property due to insufficiency of
separate property of debtor spouse for ante-nuptial debts which did not redound to benefit of
family, the support of illegitimate children of the debtor-spouse and liabilities incurred by such
debtor spouse by reason of crime or quasi-delict, are considered as advances to be deducted
from share of debtor-spouse upon liquidation of community property
o In case of insufficiency of absolute community, spouses shall be solidarily liable

Delivery of Exclusive Properties

 After payment of advances made by ACP and/or obligations of ACP for which the separate
properties were made solidarily liable, next step is to deliver whatever remains of the exclusive
properties to each of them
o Refers to those stipulated in marriage settlement as exclusive properties or even
during marriage (Art. 91) and to the three exclusions (Art. 92)
 Three exclusions
 By gratuitous title and fruits thereof
 Jewelry
 Property acquired before marriage who has legitimate descendants by
a former marriage and fruits thereof

Partition of Net Assets

 Next step is to equally divide net assets which is the net remainder of the community property
after undertaking the 1st 3 steps provided in Art. 102, to the spouses
o Interest of parties are limited to net assets or net remainder
o Until liquidation is made, impossible to say whether or not there will be a net
remainder to be divided
 Equal sharing will not apply if there is a different proportion or division agreed upon in
marriage settlement or unless there has been a voluntary waiver of such share
o Waiver must be valid
o If waiver of rights refers to those made during subsistence of ACP, such waiver is
invalid and ineffective (prohibited under Art. 89)
o Valid waiver can only occur upon a judicial separation of property or after marriage has
been dissolved or annulled and must be contained in public instrument (Art. 89(2))
 In case of annulment of marriage, ACP shall be dissolved and liquidated
o If either spouse contracted in bad faith, share of net profits of conjugal partnership
property shall be forfeited in favor of 1) Common Children, if none; 2) Children of
guilty spouse, in default of children; 3) Innocent spouse
  In cases of legal separation and annulment, party in bad faith shall forfeit share in net profits
which shall be the increase in value between market value of CP at time of celebration vs. time
of dissolution
 In case marriage is judicially nullified and when the informal civil relationship is governed by
Art. 147 and when only one of the parties to a void marriage is in good faith, share of party in
bad faith in co-ownership shall be forfeited in favor of COMMON CHILDREN
o Default of, or waiver of any or all common children or their descendants, vacant share
belong to respective surviving descendants
o In absence of descendants, share belongs to innocent party
o In all cases, shall take place upon termination of cohabitation
o Rule will not apply to subsequent void marriage as a result of non-observance of Art.
40
 Rule that will apply is Art. 50 in relation to Art. 43(2), which is forfeiture rule in
case of liquidation of ACP

Delivery of Presumptive Legitime

 Presumptive legitime delivered only after finality of judicial decree of annulment on

grounds provided in Art. 45 or of nullity of subsequent void marriage under Art. 40
o “in accordance w/ Art. 51”, which refers to termination of marriage either by an
annulment or a nullity judgement in proper cases
 Delivery of presumptive legitime need not be made in cases of legal separation or case of
judicially declared void marriage other than in a subsequent void marriage as a result of the
non-observance of Art. 40
 Made via a summary proceeding pursuant to Art. 253
 Value of presumptive legitime computed as of the date of the final judgement shall be
delivered in cash, property or sound securities, unless parties, by mutual agreement
judicially approved, had already provided for such matters (Art. 51)

Article 103. Upon the termination of marriage BY DEATH, the community property shall be
LIQUIDATED in the same proceeding for the SETTLEMENT OF THE ESTATE of the deceased.

If NO JUDICIAL SETTLEMENT PROCEEDING is instituted, the SURVIVING SPOUSE shall LIQUIDATE the
community property either JUDICIALLY or EXTRA-JUDICIALLY W/IN 1 YEAR from the DEATH OF
DECEASED SPOUSE. If upon the LAPSE OF SAID PERIOD, NO LIQUIDATION IS MADE, any disposition or
encumbrance involving the community property of the terminated marriage shall be VOID.

Should the surviving spouse CONTRACT A SUBSEQUENT MARRIAGE W/O COMPLIANCE with the
foregoing requirements, a MANDATORY REGIME OF COMPLETE SEPARATION OF PROPERTY shall
govern the property relations of the subsequent marriage. (n)

Liquidation upon death

 When marriage is dissolved by death of either spouse, community property shall be inventoried,
administered, and liquidated, and the debts thereof paid, in the estate or intestate
proceedings of the deceased spouse
 o If both spouses have died, the conjugal partnership shall be liquidated in the testate or
intestate proceedings of either
 If decedent spouse left no will and no debts, and heirs are all of age, or the minors
represented by their judicial or legal representatives, duly authorized for the purpose, parties
may, w/o securing letters of administration, from the Court, divide the estate among
themselves as they see fit by means of public instrument filed in the office of the register of
deeds, and should they disagree, they may do so in an ordinary action for partition
o If there is only one heir, he may adjudicate to himself the entire estate by means of an
affidavit filed in office of register of deeds
 Upon lapse of 1 year period from death of spouses, no liquidation is made, any disposition or
encumbrance involving community property before process of liquidation has been completed
and therefore even before the laps of the 1 year period is premature, and hence, likewise void.
o Upon death of one of spouses, only the interest to the property and not any physical
and definite property is vested on heirs
o Although after death of decedent, the heirs can sell, waive or even alienate their
interest to the property they inherit, they cannot sell a specific property as the same
can only be determined after liquidation and partition

Nature of Interest of Heirs Prior to Liquidation