Constitution

Absolute Community Property All properties owned by the spouses at the time of the celebration of the marriage and acquired thereafter (FC art.91) Spouses cannot exclude specific properties from the regime

Conjugal Partnership of Gains Spouses place in common fund: (FC art. 106) 1. Proceeds, products, fruits and income of their separate properties 2. Everything acquired by them within marriage through their own efforts 3. Everything acquired by them by chance (FC art. 117) 1. Acquired by onerous title during the marriage at expense of common fund 2. (a) Acquired through the labor, industry, work, profession of either or both spouses; (b) Fruits from common property 3. Net fruits from of exclusive property of each spouse 4. Share of either spouse in hidden treasure, whether as finder or owner of property where treasure is found 5. Acquired through occupation such as fishing or hunting 6. Livestock existing at dissolution of partnership in excess of what is brought by either spouse to the marriage 7. Acquired by chance, such as winnings from gambling or betting If winning ticket is bought by a spouse with his or her own money or was given gratuitously by a friend, the prize will be separate property of the spouse who owns the ticket If winning ticket is bought by conjugal funds, the prize is conjugal. Presumption ticket bought during marriage is bought by conjugal funds Notes: Property bought on installments paid partly from exclusive funds of the spouses and partly from conjugal funds: a.If full ownership is vested before the marriage it shall belong to the buyer-spouse b.If full ownership was vested during the marriage it shall belong to the conjugal partnership Property belonging to one spouse converted into another kind totally different in nature from its original form during marriage becomes conjugal in the absence of proof that the expenses of conversion were exclusively for the account of the original owner-spouse, subject to reimbursement of the value of the original property from the conjugal partnership Upon dissolution of marriage or partnership, the net gains or benefits from the partnership shall be divided equally between the spouses, unless they have agreed on another manner of division in their marriage settlement. Money received under the Social Security Act is not conjugal, although the employee-spouse contributes to the SSS with his salaries, but belongs to the designated beneficiary under the Social Security Law Intellectual property, like copyright or patent, should, according to Tolentino, citing Planiol and Ripert, be considered separate property of the spouse who produces or invents or discovers it, this property being of a special type, almost a part of one's person or taken from his personality and the physical or external manifestation of his intellect or genius, that it is not simply a product of one's work or industry but should be considered as pertaining exclusively to its creator Business property like trade-marks, trade names, service marks, business goodwill, and similar kinds of property are, however, merely accessories to some commercial establishment or product, so that if such establishment or product is separate property of one spouse, then the business property is separate property, the same being an accessory that follows the principal; but all benefits or earnings derived from these different kinds of property during the marriage should belong to the conjugal property (Tolentino, id., citing the same authority). FC art 109 a. Property by direct acquisition or property that is originally exclusive: 1. Property brought into marriage by each spouse as his/her own 2. Property acquired by either spouse during the marriage by gratuitous title

Exclusion

FC art 92 1. Properties acquired by a gratuitous title, i.e., donation, inheritance by testate, intestate succession, including the fruits of such properties

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Exclusion

2. 3. Obligation

Properties acquired by a gratuitous title, i.e., donation, inheritance by testate, intestate succession, including the fruits of such properties Except: when it is expressly provided by the donor or testator that the property shall form part of the ACP Properties for personal use Except: jewelry they form part of the ACP Properties acquired before the marriage for those with legitimate descendants with a former marriage To protect the rights of children by a former marriage

FC art 94 A. Debts Debts and obligations contracted during marriage (2) Either by both spouses or one of them, with the consent of the other. In (2) and (3), creditors need not prove that the debts benefited the family. Debts contracted by one spouse without consent of the other (3) ACP liable only to the extent that the debt benefited the family. Ante-nuptial debts that benefited the family (7) If the ante-nuptial debt did not benefit the family, applicable rule is (9). Ante-nuptial debts not under 7, support of illegitimate children, liabilities of either spouse arising from crime or quasi-delict (9) Only ff the debtor-spouse has no exclusive property or his or her property is insufficient. The payments by the ACP are deemed advances to be deducted from the share of the guilty spouse upon the liquidation of the absolute community. B. Taxes Tax, liens, repairs on community property (4) include both major and minor repairs Taxes and expenses for mere preservation of separate properties (5) - Applies only to separate properties by either spouse being used by the family, not those that do not benefit the family. - Expenses limited to minor repairs. C. Expenses Expenses for professional, vocational, or self-improvement course of spouses (6) Expenses of litigation between spouses (10) D. Support (1) Spouses o Even if not living together except when a spouse leaves conjugal home without just cause o Even during pendency of action for legal separation or annulment of marriage

Property by substitution: 3. Property acquired by right of redemption, by barter, or by exchange with property belonging to either spouse 4. Property purchased with exclusive money of either spouse Other separate property: 5. Collection of credits belonging to one spouse exclusively 6. Sale of separate property of a spouse 7. Indemnity paid in cash of expropriation of separate property or under an insurance policy covering separate property 8. Possession does not affect ownership of separate property FC art 121 A. Debts Debts and obligations contracted during the marriage by the designated administrator-spouses for the benefit of the CPG or by both spouses or by one of them with the consent of the other (2) Debts and obligations contracted by either spouse without the consent of the other to extent that the family may have benefited (3) Ante-nuptial debts of either spouse in so far as they have redounded to the benefit of the family (7) B. Taxes Taxes, liens, charges and expenses upon conjugal property (4) Taxes and expenses for mere preservation made during the marriage upon separate property of either spouse (5) C. Expenses Expenses to enable either spouse to commence or complete a professional, vocational, or other activity for self-improvement (6) Expenses of litigation between the spouses unless the suit is found to be groundless (9) D. Support Support of the spouse, their common children, and the legitimate children of either spouse (1) E. Donation The value of what is donated or promised by both spouses in favor of their common legitimate children for the exclusive purpose of commencing or completing professional or vocational course or other activity for selfimprovement (8) 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. Disposition or encumbrance of conjugal property requires: A. The consent or approval by both spouses; OR B. Judicial authority secured in court Mere awareness of a transaction is NOT consent

b.

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Obligation

Liquidation

Common children Legitimate children of previous marriage E. Donation (8) Donations by both spouses to common legitimate children FC art 102 Process of liquidation: 1. Inventory of assets of ACP and of spouses, with market values 2. Obligations are paid with community property and separate obligations not charged to ACP paid by respective assets of spouses. 3. Balance, or net remainder is divided equally between the spouses, irrespective of how much each brought into the community 4. If obligations exceed the assets of the ACP, nothing is divided. Creditors can go after the separate properties of the spouses, which are solidarily liable for defiency 5. If personal obligations of a spouse exceed his/her separate property, creditor can go after the share of the spouse on the net remainder of the ACP, without prejudice to the provisions of law on forfeitures and delivery of presumptive legitimes. 6. After covering all community obligations and obligations of spouses, balance of separate properties shall be delivered to respective spouses or their heirs, and they will also divide into two equal shares whatever is left of the community assets, without prejudice to the provisions of law on forfeitures and delivery of presumptive legitimes.

FC art 129 Dissolution of CPG (ART. 129): 1. Prepare an inventory of all properties 2. Amounts advanced by the conjugal partnership in payment of personal debts and obligations of either spouse shall be credited to the conjugal partnership. 3. Each spouse shall be reimbursed for the use of his or her exclusive funds in the acquisition of property or for the value of his or her exclusive property, the ownership of which has been vested by law in the conjugal partnership. 4. Debts and obligations of the conjugal partnership shall be paid out of the conjugal assets. 5. Whatever remains of the exclusive properties of the spouses shall be delivered 6. Indemnify loss or deterioration of movables belonging to either spouse, even due to fortuitous event, used for the benefit of the family 7. The net remainder of the conjugal partnership properties, or the profits, which shall be divided equally between husband and wife EXCEPTIONS: a. A different proportion or division was agreed upon in the marriage settlements b. There has been a voluntary waiver or forfeiture of such share as provided in this Code. [NOTE: Dissolution of the conjugal property must be recorded in the registry of property in order to affect third persons dealing with registered property.]

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