Notes and Key Articles for
Finals
Arts. 105 – 108
 Definition of CPG: is a special type
of partnership where the husband and
wife place in a common fund the
proceeds, fruits and income from
their separate properties and those
acquired by either or both spouses
through their efforts or by chance
(Homeowners Savings & Loan Bank
vs Dailo, 453 SCRA 283)
 Governing Rule for CPG: rules on
contract of partnership; must be
expressly agreed
 Commencement of CPG: at the
precise moment the marriage is
celebrated. Any other time is VOID.
o If legally separated: regime
not allowed.
Art. 109
 CPG does not produce the merger of
the separate property of each spouse
 The property of either spouse that he
or she marriage remains as his or her
exclusive property in the regime of
conjugal partnership of gains
o EXCEPTION: fruits and
income thereof are considered
conjugal partnership property
Property Acquired Before Marriage
 Limitations to the Right of the Future
Spouses to include Properties
acquired prior to the Marriage in their
Conjugal Partnership
1. Art. 84 (1) of the Family Code. “if
the future spouses agree upon a
regime other than the 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 rendered
void”
2. Art. 92 (3) of the Family Code.
“property acquired before the
marriage by either spouse who
has legitimate descendants by a
former marriage, and the fruits as
well as the income, if any, of such
property.”
Property Acquired During the Marriage
by Gratuitous Title
 Exclusive property of both spouses
 Fruits and income of the separate
properties of the spouses are part of
the conjugal partnership
 If with designation of determinate
shares: the share of each in the said
property shall be considered as his or
her own exclusive property
 If no designation of determinate
shares: spouses shall share alike.
EXCEPTION: respective share shall
still be considered as exclusive
property
Property Acquired by Redemption,
Barter or Exchange
 Right of redemption pertains
exclusively to the redemptioner –
spouse.
BUT subject to
REIMBURSEMENT
 Barter or through exchange:
exclusive property of the acquiring
spouse
Property Purchased with Exclusive
Money
 Whatever is acquired through the use
of exclusive money of either spouse
shall also be considered as exclusive
property of the owner of the funds
 Notes and Key Articles for
Finals
 DATION IN PAYMENT (dacion en
pago) definition: payment for any
indebtedness owing exclusively to
one of the spouses
 If the property acquired through
dacion en pago is acquired through
purchase with exclusive money,
hence, the same is exclusive property
of the owner of the credit
Arts. 110 – 112
 If owner – spouse wants to transfer
the administration of his or her
exclusive property to the other spouse
during the marriage,
HE OR SHE MUST
1. Embody such transfer in a
public instrument
2. Record such transfer in
the registry of property of
the place where the
property is located
Arts. 113 – 114
 If donation is made to husband and
wife jointly, there is accretion
between them if the contrary has not
been provided for by the donor.
 Acceptance by one of the spouse is
sufficient for the purpose of
perfecting the donation
notwithstanding the non – acceptance
by the other donee – spouse
Onerous Donations
 Burden or charges inferior in value
compared to the property donated
imposed on the done’
 SUBJECT TO
REIMBURSEMENT
Art. 116
 GENERAL RULE: all property
acquired by the spouses, regardless of
in whose name the same is registered,
during the marriage is presumed to
belong to the conjugal partnership
EXCEPTION: proved that it
pertains exclusively to the
husband or to the wife.
 Acquisition is made DURING THE
MARRIAGE for the presumption to
apply with PROOF THAT THE
PROPERTY WAS ACQUIRED
DURING THE MARRIAGE
 Only properties acquired during the
marriage are to be presumed included
in the partnership
 Villanueva vs. Court of Appeals
Whether a property is
conjugal or not is determined
by law and not by the will of
one of the spouses. No
unilateral declaration by one
spouse can change the
character of conjugal property
Art. 117
Property Acquired During the Marriage
by Onerous Title
 Two – tiered test:
1. The manner of acquisition test –
whether onerous or gratuitous
2. The source of funds test –
whether conjugal funds or
exclusive money
 If acquired during the marriage by
gratuitous title by either spouse, the
property so acquired is exclusive
property.
 If acquired through onerous title,
ownership depends upon the
SOURCE OF FUNDS USED in
such acquisition;
 Notes and Key Articles for
Finals
If exclusive money of either
spouse – exclusive property
If conjugal partnership funds
– conjugal property
 INSTALLMENTS
OWNERSHIP: time when
full ownership is vested not
the source of funds
If full ownership vested
before marriage – exclusive
property of the buyer or
buyers, even if purchase price
is PARTLY/OR
SUBSTANTIALLY PAID
from conjugal funds
If full ownership vested
during the marriage –
conjugal partnership, even if
purchase price is
PARTLY/OR
SUBSTANTIALLY PAID
from conjugal funds
Property Obtained from Labor, Industry,
Work or Profession
 Wages, salaries, fees or income
earned during the marriage – conjugal
partnership properties
 If earned prior to the marriage –
exclusive property of spouse who
earned it
Property Acquired through Occupation
 Definition: mode of acquiring
ownership or dominion by the seizure
of things corporeal which have no
owner and with the intention of
acquiring them according to the rules
laid down by the law
 REQUISITES:
1. There must be a SEIZURE
2. The things must be
CORPOREAL
3. There must be INTENTION TO
APPROPRIATE
4. The thing must not be owned by
ANYBODY
5. The rules laid down must be
FULFILLED
Fruits and Income of Separate Property
 Exclusive property: ONLY the NET
FRUITS are part of the conjugal
partnership
Def. of Net Fruits: remainder
of the fruits after deducting the
amount necessary to cover the
expenses of administration of said
exclusive property.
 Kinds of Fruit
1. Natural – products of soil
2. Industrial – produced by
lands of any kind through
cultivation or labor
3. Civil – rents of building,
the price of leases of lands
and other property and the
amount of perpetual or life
annuities or other similar
income
Property Acquired by Chance
 Winnings: conjugal partnership
 Losses: borne exclusively by loser
spouse
Art. 120
Requisites:
1. Property is owned exclusively by
one of the spouses
2. Said property has been the subject
of an improvement, whether for
utility or adornment
 Notes and Key Articles for
Finals
3. Improvements were made at the
expense of the conjugal
partnership or through the acts or
efforts of either or both spouses
Determination of Ownership
1. If the cost of improvements and any
resulting increase in value are MORE
THAN THE VALUE OF THE
PROPERTY at the time of the
improvement, the entire property
shall belong to the conjugal
partnership, subject to the
reimbursement of the value of the
property of the owner – spouse at the
time of the improvement.
2. If the cost of the improvements and
any resulting increase in value are
LESS THAN THE VALUE OF
THE PROPERTY at the time of the
improvement, the entire property
shall belong to the owner of the
property, subject to the
reimbursement of the cost of the
improvement in favor of the conjugal
partnership.
When Ownership is Vested
 The ownership over the entire
property shall be vested in favor of
the conjugal partnership or of the
owner – spouse only upon
REIMBURSEMENT. (only at the
time of the liquidation of the
partnership)
 If reimbursement is made PRIOR
TO THE LIQUIDATION, it is
submitted that the ownership over the
entire property shall
IMMEDIATELY VESTS UPON
THE PAYOR
Art. 121.
 If the conjugal partnership is
insufficient to cover the foregoing
liabilities, THE SPOUSES SHALL
BE SOLIDARILY LIABLE FOR
THE UNPAID BALANCE WITH
THEIR SEPARATE
PROPERTIES.
 For such solidary liability of either
spouse to attach, it is incumbent upon
the creditor to prove that the assets of
the partnership are not sufficient to
pay for its obligations.
 Alipio vs. Court of Appeals
A creditor cannot sue the
surviving spouse of a decedent in an
ordinary proceeding for the collection
of a sum of money chargeable against
the conjugal partnership and that the
PROPER REMEDY IS FOR HI,
TO FILE A CLAIM IN THE
SETTLEMENT OF ESTATE OF
THE DECEDENT.
 Calma vs Tañedo
After the death of either of the
spouses, no complaint for the
collection of indebtedness
chargeable against the
conjugal partnership can be
brought against the surviving
spouse. Instead, the claim
must be made in the
proceedings for the
liquidation and settlement of
the conjugal property. The
reason for this is that upon the
death of one spouse, the
powers of administration of
the surviving spouse ceases
and is passed to the
administrator appointed by
the court having jurisdiction
 Notes and Key Articles for
Finals
over the settlement of estate
proceedings.
Debts “Redounding to the Benefit of the
Family”
 If the debt is contracted by the
designated administrator – spouse or
by one spouse without the consent of
the other or if the debt is contracted
prior to the marriage, the conjugal
partnership shall be liable only if it
can be PROVEN THAT THE
DEBT REDOUNDED TO THE
BENEFIT OF THE CONJUGAL
PARTNERSHIP OR OF THE
FAMILY.
 Burden of Proof: creditor – part
litigant claiming. Ei incumbit
probation qui dicit, non qui negat (he
who asserts, not he who denies, must
prove)
 Ayala Investments & Development
Corp. vs. Court of Appeals, 286
SCRA 272 (1998)
 If the husband himself is the
principal obligor in the contract,
i.e., he directly received the
money and services to be used in
or for his own business or his own
profession, that contract falls
within the term “obligations for
the benefit of the conjugal
partnership.” Where the husband
contracts obligations on behalf of
the family business, the law
presumes, and rightly so, that
such obligation will redound to
the benefit of the conjugal
partnership.
 Signing as SURETY is certainly
not an exercise of an industry or
profession. It is not embarking in
a business. No matter how often
an executive acted on or was
persuaded to act as surety for his
own employer, this should not be
taken to mean that he thereby
embarked in the business of
suretyship or guaranty. Thus, the
conjugal partnership should not
be made liable for the surety
agreement which is clearly for the
benefit of a third party.
Arts. 124 – 125
 OLD RULE: the husband is the
administrator of the conjugal
partnership property. More, the
husband is the sole administrator. The
wife is not entitled as of right to joint
administration.
 NEW RULE: The administration
and enjoyment of the conjugal
partnership belongs to both spouses
jointly but, in case of disagreement,
the decision of the husband shall
prevail
One of the Spouses in the Regime of
Conjugal Partnership of Gains may
assume sole power of administration in
the following instances:
1. In the event that one spouse is
incapacitated or otherwise unable to
participate in the administration of the
common properties, in which case,
the other spouse may assume sole
powers of administration, without the
need of court approval or
authorization
2. During the pendency of a legal
separation case, the court hearing the
case may designate either of the
 Notes and Key Articles for
Finals
spouses as sole administrator of the
absolute community, in which case, Disposition or Encumbrance of Conjugal
the court – appointed administrator Property
shall have the same powers and duties
as those of a guardian under the Rules
of Court
3. 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 authority to be
the sole administrator of the absolute
community

Sole Power of Administration under Art.

124
Civil Code Family Code
the prohibition on the spouse
the part of the exercising the sole
husband, acting as power of
sole administrator, administration does
extends only to not have the power
alienation or to dispose or
encumbrance of real encumber all
property without the property of the
wife’s conjugal
partnership, be it
real or personal.

Alienation – the transfer of the property and

possession of lands, tenements, or other
things from one person to another

Encumbrance – every right to, or interest in,

the land which may subsist in third persons,
to the diminution of the value of the land, but
consistent with the passing of the fee by the
conveyance; or any act that impairs the use of
transfer of property or real estate, which
includes not only lies such as mortgages and
taxes, but also attachment, leases, inchoate
dower rights, water rights, easements, and
other restriction to use.