Conjugal Partnership of Gains

Question 1

What shall govern over the already established conjugal partnership of gains before the effectivity of the Family Code? Is there an exception?

Answer 1

The provisions on the Chapter of Conjugal Partnership of Gains shall govern the conjugal partnerships of gains already established before the effectivity of the Family Code. The exception is only when it prejudices vested rights already acquired in accordance with the Civil Code.

Question 2

What shall be placed in the common fund of the spouses in a conjugal partnership?

Answer 2

Article 106 FC:

1. proceeds;
2. products;
3. fruits; and
4. income from the separate properties of the spouses or both spouses through their efforts or by chance.

art 106 FC: Under the regime of conjugal partnership of gains, the husband and wife place in a common fund the proceeds, products, fruits and income from their separate properties and those acquired by either or both spouses through their efforts or by chance, and, upon dissolution of the marriage or of the partnership, the net gains or benefits obtained by either spouses shall be divided equally between them, unless otherwise agreed in the marriage settlements.

Question 3

In case of dissolution, how shall the net gains of the conjugal property be divided?

Answer 3

Art 106: Upon dissolution of the marriage or of the partnership, the net gains or benefits obtained by either or both spouses shall be divided equally between them, unless otherwise agreed in the marriage settlements.

Question 4

What are the exclusive properties of each spouse?

Answer 4

Art. 109: The following are the exclusive properties of each spouse:

1. That which is brought to the marriage as his or her own;
2. That which each acquires during the marriage by gratuitous title;
3. That which is acquired by right of redemption, by barter or by exchange WITH PROPERTY BELONGING TO ONLY ONE OF THE SPOUSES; and
4. That which is purchased with the exclusive money of the wife or husband.

Question 5

How shall the spouses administer their exclusive properties?

Answer 5

Art 110 FC: The spouses retain the ownership, possession, administration and enjoyment of their exclusive properties.

Question 6

May the either spouse transfer the administration of his or her exclusive property to the other spouse?

Answer 6

Yes, the other spouse may transfer the administration of his or her exclusive spouse during the marriage.

Art 110 par 2 FC: Either spouse may, during the marriage, transfer the administration of his or her exclusive property to the other by means of a public instrument, which shall be recorded in the registry of property of the place where the property is located.

Question 7

How shall the transfer of administration of an exclusive property from the spouse to the other spouse be executed?

Answer 7

The transfer shall be executed by means of a public instrument, which shall be recorded in the registry of property of the place where the property is located. (art 110 par 2 FC)

Question 8

May a spouse subject his or her own property to an encumbrance?

Answer 8

Yes, either spouse may mortgage, encumber, alienate or otherwise dispose of his or her exclusive property (art 111 FC)

Question 9

May a spouse encumber, alienate, or dispose of his or her exclusive property which is under the administration of the other spouse? what shall be the effect?

Answer 9

Yes, according to art 112 of the family code, the alienation of any exclusive property of a spouse administered by the other automatically terminates the administration over such property and the proceeds of the alienation shall be turned over to the owner-spouse.

Question 10

Who shall own property donated or left by will to the spouses?

Answer 10

Art 113 FC: Property donated or left by will to the spouses, jointly and with designation of determinate shares, shall pertain to the donee-spouse as his or her own exclusive property, and in the absence of designation, share and share alike, without prejudice to the right of accretion when proper.

Question 11

Who shall bear the charges if the donations are onerous?

Answer 11

The exclusive property of the donee-spouse. Under art 114 of the FC: If the donations are onerous, the amount of the charges shall be borne by the exclusive property of the donee-spouse, whenever they have been advanced by the conjugal partnership of gains.

Question 12

What shall be governed by rules on gratuitous or onerous acquisitions (in a CPG property regime)?

Answer 12

Retirement benefits, pensions, annuities, gratuities, usufructs and similar benefits shall be governed by the rules on gratuitous or onerous acquisitions as may be proper in each case. (art 115 FC)

Question 13

What are presumed to be conjugal partnership property?

Answer 13

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 unless the contrary is proved. (art 116 FC)

Question 14

What is the exception to the general rule:

“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”?

Answer 14

The exception to the genera rule on the presumption of conjugal property is when the contrary is proved.

Question 15

What shall form part of the conjugal partnership property?

Answer 15

Under art 117 of the family code: The following are conjugal partnership property:

1. Property 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. Property 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 share of either spouse in the hidden treasure WHICH THE LAW AWARDS TO THE FINDER OR OWNER OF THE PROPERTY WHERE THE TREASURE IS FOUND;
5. Those acquired through occupation such as fishing or hunting;
6. Livestock existing upon the dissolution of the partnership in excess of the number of each kind brought to the marriage by either spouse (total chickens in marriage - total chickens single);
7. Those which are acquired by chance, such as winning from gambling or betting. However, losses therefrom shall be borne exclusively by the loser-spouse.

Question 16

When shall the ownership of property bought on installments be under the conjugal partnership, and when shall it be exclusive?

Answer 16

If ownership of property is vested during the marriage and the installment is paid either (1) purely from conjugal funds or (2) partly from exclusive funds of either or both spouses and partly from conjugal funds.

The ownership of the property shall be exclusive if ownership was vested before the marriage.

Art 118 FC: Property bought on installments paid partly from exclusive funds of either or both spouses and partly from conjugal funds belongs to the buyer or buyers if full ownership was vested before the marriage and to the conjugal partnership if such ownership was vested during the marriage. In either case, any amount advanced by the partnership or by either or both spouses shall be reimbursed by the owner or owners upon liquidation of the partnership.

Question 17

To whom shall the principal and interest of a credit transaction belong to?

Answer 17

The principal shall be the exclusive property of either spouse (if the principal used in the credit transaction was from the exclusive property of either spouse) but the interests on the principal shall belong to the conjugal partnership (if the interest accrues during the marriage).

Art 119 FC: Whenever an amount or credit payable within a period of time belong to one of the spouses, the sums which may be collected during the marriage in partial payments or by installments on the principal shall be the exclusive property of the spouse. However, interests falling due during the marriage on the principal shall belong to the conjugal partnership.

Question 18

If there is an improvement made on an exclusive property, who shall own the improvements?

Answer 18

Under Art 120 FC: The ownership of the improvements made on the separate property of the spouse at the expense of the partnership or through the acts or efforts of either or both spouses shall pertain to the conjugal partnership or to the original owner-spouse.

The following rules shall govern:

If because of the improvements, the resulting increase in value is greater than the original value of the property, ownership shall belong to the conjugal partnership. If not, ownership of the property shall remain to the original owner-spouse.

Question 19

Keywords/phrases for art 121: the conjugal partnership shall be liable for:

Answer 19

art 121 FC: the conjugal partnership shall be liable for:

1. support;
2. debts during marriage;
3. debts without consent but family benefited;
4. taxes and expenses upon conjugal property;
5. taxes and expenses for preservation of separate property;
6. self-improvement and education of either spouse;
7. antenuptial debts that benefit that family;
8. education and self-improvement of COMMON LEGITIMATE children;
9. litigation expenses UNLESS suit is groundless

Question 20

Where shall liabilities be charged if the conjugal partnership is insufficient?

Answer 20

Under art 121 FC: If the conjugal partnership is insufficient to cover the foregoing liabilities, the spouses shall be solidarily liable for the unpaid balance with their separate property.

Question 21

What is the general rule regarding personal debts of spouses? What is the exception?

Answer 21

The general rule shall be, under Art 122 par 1 of the FC:

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.

The exception to the general rule: Except insofar as they redounded to the benefit of the family.

Question 22

Where shall fines and indemnities imposed upon personal debts of the spouses be charged?

Answer 22

Under art 122 par 2 of the FC, fines and indemnities imposed upon the personal debts contracted by the husband or the wife before or during the marriage shall, likewise, not be charged to the partnership.

Question 23

Where shall payments for personal debts and its charges be debited from if the spouse who contracted the debt has no exclusive property (or is insufficient) to pay off the debt?

Answer 23

Such personal debts may be enforced upon the conjugal partnership if the contracting spouse has no exclusive property sufficient to cover the debt.

Under art 122 par 3 FC: The payment of personal debts contracted by either spouse before the marriage, that of fines and indemnities imposed upon them, as well as support of illegitimate children of either spouse, may be enforced against the partnership assets after the responsibilities enumerated in the preceding article [art 121] have been covered, if the spouse who is bound should have no exclusive property or if it should be insufficient; but at the time of the liquidation of the partnership, such spouse shall be charged for what has been paid for the purposes above-mentioned.

Question 24

For whose support shall the conjugal partnership be liable?

Answer 24

Under art 121 FC: (1) The conjugal partnership shall be liable for the support of the spouse, their common children, and the legitimate children of either spouse.

Question 25

What rules shall govern the support of illegitimate children?

Answer 25

Under art 121 FC: (1) The support of illegitimate children shall be governed by the provisions of Family Code on support [Title VIII art 194-208]

Question 26

When shall the conjugal partnership be made liable for debts and obligations.

Answer 26

Under 121 FC: (2) All debts and obligations contracted during the marriage by the designated administrator spouse for the benefit of the conjugal partnership of gains, or by both spouses or by one of them with the consent of the other; (3) debts and obligations contracted by either spouse without the consent of the other to the extent that the family may have been benefited; (7) antenuptial debts of either spouse insofar as they have redounded to the benefit of the family ** art 122: Payment of personal debts of either spouse shall not be charged the conjugal partnership. However, if the spouse who contracted such debt has no exclusive property or his/her exclusive property is insufficient to cover the personal debts, then such debts may be imposed upon the conjugal partnership but subject to reimbursement upon dissolution of the conjugal partnership of gains.

Question 27

When shall the conjugal partnership be made liable for the separate property of either spouse?

Answer 27

The conjugal partnership shall be made liable for the charges and expenses for mere preservation made during the marriage upon the separate property of either spouse [art 121 (5) FC]

Question 28

What is the rule regarding property acquired/lost from gambling? Shall it be accrued/charged upon the conjugal partnership?

Answer 28

Under art 123 of the Family Code: Whatever may be lost during the marriage in any game of chance, or in betting, sweepstakes, or any other kind of gambling whether permitted or prohibited by law, shall be borne by the loser and shall not be charged to the conjugal partnership but any winnings therefrom shall form part of the conjugal partnership property.

Question 29

To whom shall the administration and enjoyment of the conjugal partnership property belong to?

Answer 29

Under art 124 of the FC: The administration and enjoyment of the conjugal partnership property shall belong to both spouses jointly.

Question 30

How shall the spouses settle disagreements concerning the administration and enjoyment of the conjugal partnership property?

Answer 30

Under art 124 of the FC: In case of disagreement, the husband's decision shall prevail, subject to recourse to the court by the wife for proper remedy, which must be availed of within five years from the date of the contract implementing such decision.

Question 31

Is the husband's decision concerning the administration of the conjugal property during a disagreement absolute?

Answer 31

No, the husband's decision is not absolute. According to art 124 of the FC: The husband's decision shall prevail in case of disagreement concerning the administration and enjoyment of the conjugal partnership property. However, the husband's decision is subject to recourse to the court by the wife for proper remedy.

Question 32

What is the period by which the wife may seek judicial relief regarding a decision by her husband concerning the administration and enjoyment of a conjugal property?

Answer 32

According to art 124 of the FC: The action by the wife must be availed of within five years from the date of the contract implementing such decision [husband's decision].

Question 33

When may the other spouse assume sole powers of administration over a conjugal property?

Answer 33

(1) incapacity of the other spouse; (art 124 FC) (2) inability to participate in the administration; (art 124 FC) (3) unjust abandonment by the other spouse; (art 128 FC) (4) failure of other spouse to fulfill obligations to the family; (art 128 FC) The other spouse may assume sole powers of administration in the event that one spouse is incapacitated or otherwise unable to participate in the administration of the conjugal properties. (art 124 par 2 FC) Art 128 FC: If a spouse without just cause abandons the other or fails to comply with his or her obligations to the family, the aggrieves spouse may petition the court for receivership, for judicial separation of property, or for authority to be the sole administrator of the conjugal partnership property, subject to such precautionary conditions as the court may impose.

Question 34

Are the powers of administration of the spouse who assumed sole administrative powers due to the incapacity of the other spouse absolute?

Answer 34

No, the power of the sole administrator of the conjugal property is not absolute. Under art 124 par 2 of the Family Code, such powers do not include disposition or encumbrance without the authority of the court or the written consent of the other spouse.

Question 35

What is required in order that the sole administrator spouse may subject the conjugal property to encumbrance or disposition?

Answer 35

The written consent of the other spouse, or an authority from the court is required upon the sole administrator spouse to subject a conjugal property to encumbrance or disposition (art 124 par 2 FC).

Question 36

What shall be the effect if the sole administrator spouse subjected the conjugal property to a disposition or encumbrance without authority from the counter or written consent from the other spouse?

Answer 36

Under art 124 par 2 of the FC: In the absence of authority from the court or written consent from the other spouse, the disposition or encumbrance shall be void. However, the transaction shall be construed as a continuing offer on the part of the consenting spouse and the third person, and may be perfected as a binding contract upon acceptance by the other spouse or authorization by the court before the offer is withdrawn by either or both offerors.

Question 37

What is the rule regarding donations of conjugal property?

Answer 37

Under art 125 of the FC, the rule shall be: neither spouse may donate any conjugal partnership property without the consent of the other. However, the exception to the rule is: either spouse may, without the consent of the other, make MODERATE DONATIONS from the conjugal partnership property for (1) charity, or (2) occasions of family rejoicing, or (3) during family distress.

Question 38

When shall the conjugal partnership of gains be terminated?

Answer 38

Under art 126 of the Family Code, the conjugal partnership terminates: (1) upon death of either spouse; (2) When there is a decree of legal separation; (3) When the marriage is annulled or declared void; or (4) In case of judicial separation of property during the marriage under Articles 134 to 138.

Question 39

What are the cases wherein the separation in fact between the spouses affect the conjugal partnership?

Answer 39

Under art 127 of the Family Code: The separation in fact between husband and wife shall not affect the regime of conjugal partnership, except that: (1) The spouse who leaves the conjugal home or refuses to live therein, without 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 conjugal partnership property, the separate property of both spouses shall be solidarily liable for the support of the family. The spouses present shall, upon 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.

Question 40

What are the remedies of a spouse when the other spouse abandons him/her without just cause, or fails to comply with his or her obligations to the family?

Answer 40

The remedies of the abandoned spouse / aggrieved spouse are: (1) petition for receivership; (2) judicial separation of property; (3) authority to be the sole administrator of the conjugal partnership property. Under Art. 128 of the Family Code: 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 receivership, for judicial separation of property, or for authority to be the sole administrator of the conjugal partnership property, subject to such precautionary conditions as the court may impose.

Question 41

When is a spouse deemed to have abandoned the other?

Answer 41

A spouse is deemed to have abandoned the other spouse when he or she has left the conjugal dwelling without intention of returning. (Art. 128 FC par 3)

Question 42

When is a spouse deemed to have no intention of returning?

Answer 42

The spouse who has left the conjugal dwelling for a period of three 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 of returning to the conjugal dwelling. (Art 128 FC par 3)