Notes and Key Articles for

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