CONJUGAL PARTNERSHIP OF

GAINS
Regime of Conjugal Partnership of Gains
-Special type of partnership.
-Husband and wife place in a common fund the product, proceeds, fruits, and income from their separate properties and those
acquired by either both spouse through their efforts or by chance.
-Each of the spouses continues to be the owner of what he or she may have brought to the marriage.
-Upon dissolution, net gains or benefits shall be divided equally between the spouses, unless agreed in the marriage agreement.
 ABSOLUTE COMMUNITY V. CONJUGAL PARTNERSHIP OF
GAINS

• ABSOLUTE COMMUNITY
• Spouses are considered co-owners of the community property.
• Rules on co-ownership applies
• COMMUNITY PARTNERSHIP OF GAINS
• There is no co-ownership
• Rules on contract of partnership applies.
 CONJUGAL PARTNERSHIP OF GAINS
• Shall govern property relations if agreed upon in the marriage
settlement
• Applies for marriages celebrated after the effectivity of the FC on Aug.
3, 1988.
 COMMENCEMENT OF CPG

• At the precise moment that the marriage is celebrated

• Can only exist if there is marriage settlement
 PROHIBITION ON WAIVER OF RIGHTS,
INTERESTS AND SHARES
Any waiver of right, interest, share or effects of CP during the marriage
cannot be made.
If made, the same shall not produce legal effect.
The rights of the husband and wife do not vest until the liquidation of
the CP.
“NEMO DAT QUI NON HABET”. No one can give what he has not.
 PROPERTY ACQUIRED DURING THE
MARRIAGE

• Properties brought to the marriage remains his or her property.

• Fruits and income considered CPP
• Note: there is nothing however that prevents the future spouses
from including in the their CPP acquired prior to the marriage.
 PROPERTY ACQUIRED BY REDEMPTION,
BARTER OR EXCHANGE
• Exclusive property of the redemptioner-spouse
• Acquired by either spouse through barter or exchange with property
belonging to one spouse is exclusive property.
 PROPERTY PURCHASED WITH
EXCLUSIVE MONEY
• Exclusive property of the owner of the fund.
 ADMINISTRATION OF EXCLUSIVE
PROPERTY
• Belongs to the owner
• May be transferred voluntarily or upon order of the court
• In case of transfer, must be embodied in a public instrument and
recorded in the registry of property.
• Administration does not include the power to dispose and encumber
such property.
 DONATION TO SPOUSES IN CONJUGAL
PARTNERSHIP OF GAINS
• If donated to the spouses jointly and with designation of
determinate shares, the share of each in said property shall be
considered as his or her own exclusive property
• If there is no designation the spouses shall share and share alike but
their respective shares shall still be considered as exclusive property.
 ONEROUS DONATIONS
• Are those where burden of charges inferior in the value compared to
the property donated is imposed upon the done.
• Property remains exclusive property of the donee-spouse
• If burden of charges were paid from the conjugal funds the conjugal
partnership shall be reimbursed
RETIREMENT BENEFITS, PENSIONS,
ANNUITIES ETC.
• Is spouses obtains such benefit out of pure liberty of the grantor,
benefit is considered exclusive property
• Benefit is an accumulation or deductions from money earned during
the marriage or from salaries of either spouse it forms part of the
conjugal property.
 CONJUGAL PARTNERSHIP PROPETY
• All properties acquired during marriage presumed to belong to the
conjugal partnership
• Presumption applies even if the acquisition appears to have been
made, contracted or registered in the name of one or both spouse
• Registration in the name of one or both spouse not conclusive
evidence of exclusive ownership
 ARTICLE 117
The following are Conjugal Partnership Properties

• Acquired by onerous title during marriage

• Acquired form labor, industry, work or profession of either or both
• Fruits of Natural, Industrial or Civil due o received during marriage
from common property as well as the net fruits from the exclusive
property of each spouse.
• Share of either spouse in the hidden treasure
• Acquired through occupation , fishing or hunting
• Livestock existing upon dissolution of partnership
• Those acquired by chance
 PROPERTY ACQUIRED DURING MARRIAGE
THROUGH ONEROUS TITLE

• Two-tier test to determine whether property acquired is conjugal or

exclusive.
• Manner of Acquisition(whether onerous or gratuitous)
• In case onerous, source of fund test (whether conjugal fund or exclusive fund)
Property acquired during marriage through gratuitous title by either spouse is
exclusive property.
If onerous title will depend on the source of fund.
Sourced from exclusive money, property acquired is exclusive
Sourced form conjugal fund, property is conjugal property.
PROPERTY OBTAINED FROM LABOR WORK INDUSTRY WORK
OR PROFESSION

• Belongs to the conjugal property

• If earned before marriage, exclusive property of spouse who earned
it.
• Debts contracted during the marriage w/c he or she contributes
towards the support of his or her family, not considered personal
debts but obligation of conjugal property.
 PROPERTY ACQUIRED THROUGH
OCCUPATION
• Occupation – mode of acquiring ownership or dominion by the
seizure of things corporeal w/c have no owner and with the intention
of acquiring them according to the rules laid down by the law.
• Requisites:
• There must be a seizure.
• Things must be corporeal.
• Intention to appropriate.
• Things must not be owned.
• Rules must be fulfilled.
 FRUITS AND INCOME OF
SEPARATE PROPERTY
• Due or received during the marriage are also part of the conjugal
partnership
• Only the “net fruits” w/c refer to the remainder of the fruits after
deducting the amount necessary to cover the expenses of
administration of said exclusive property.
• Fruits received prior to the marriage from the exclusive property of
each spouse shall remain as his/her exclusive property.
 PROPERTY ACQUIRED BY CHANCE
• Winnings from gambling or betting, belongs to conjugal partnership
• However, losses therefrom shall be borne exclusively by the losser-
spouse
 DETERMINATION OF OWNERSHIP
• Cost of improvement and any resulting increase in value are more
than the value of the property at the time of improvement, the entire
property shall belong to the conjugal partnership. Subject to
reimbursement of the value of the property of the owner-spouse.
• Cost of improvement and any resulting increase in value are less than
the value of the property at the time of improvement, the entire
property shall be retained in the ownership of the owner-spouse.
Subject to reimbursement of the cost of the improvement made by
the conjugal partnership of the spouse.
 WHEN OWNERSHIP IS VESTED?
• According to article 120, the ownership over the entire property shal
be vested in favor of the conjugal partnership or of the owner-spouse
only upon reimbursemet.
• If reimbursement is made prior to liquidation, ownership immediately
vests in favor of the conjugal partnership or of the owner of the
spouse.
 CHARGES UPON AND OBLIGATIONS OF
THE CP
• ART. 121. The Conjugal Partnership shall be liable for :
• The support of the spouses, their common children and the legitimate
of either spouse
• All debts and obligations contracted during marriage
• Debts and obligations contracted by either spouse without the
consent of the other to the extent that the family may have been
benefited.
• All taxes, liens, charges, expenses, major and minor repairs upon the
CP
• All taxes and expenses for mere preservation made during the the
marriage upon the separate property of either spouse
• Expenses to enable either spouse to commence or complete a
professional, vocational or other activity for self improvement
• Antenuptial debts insofar as they have redounded to the benefit of
the family
• The value of what is donated or promised by both spouses in favor of
common children fro self-improvement
• Expenses of litigation
 CHARGES AND OBLIGATIONS OF THE CONJUGAL
PARTNERSHIP
• CP is not liable for personal obligations of the debtor-spouseabsent
any showing that such obligation have redounded to the benefit of
the family.
• Exclusive properties of either spouses are not, as a rule, liable for the
obligations of the partnership unless the partnership assets are not
sufficient to pay for the obligations in which case the spouses shal be
solidarily liable.
• An obligation entered into by both spouses is chargeable against their
CP and the partnership is primarily bound for its repayment.
 DEBTS REDOUNDING TO THE BENEFIT OF
THE FAMILY
• If debt is contracted during marriage by either spouse with the
consent of the other or by both of them, the law conclusively
presumes that such debt has redounded to the benefit of the family
making the CP liable for the indebtedness.
• If debt is contracted prior to marriage or contracted without the
consent of the other the CP is not liable unless debt has redounded to
the benefit of the family.
ADMINISTRATION AND DISPOSITION OF
CONJUGAL PROPERTY
• Administration and enjoyment of the CP belong to both spouses
jointly, but in case of disagreement husband prevail.
• As in the case of Absolute Community, one of the spouse in the
regime CPG may assume sole power of administration in the following
instances:
• In the event the spouse is incapacitated or unable to participate in the
administration of CP.
• During pendency of legal separation case, the court hearing the case mau
designate either of the spouses as sole administrator.
• If the spouse w/out just cause abandons the other or fails to comply with his
her obligations to the family.
 SOLE POWER OF ADMINISTRATION
UNDER ARTICLE 124
• In the event that one spouse is incapacitated or unable to participate
in the administration of CP the other spouse may assume sole poer of
administration.
• These powers do not include disposition and encumbrance without
authority of the court or written consent of the spouse.
 DISPOSITION OR ENCUMBRANCE OF
CONJUGAL PPORPERTY
• Even if the husband is statutorily designated as administrator of the
CP he cannot validly alienate or encumber any real property without
the wife’s consent.
• As an exception, husband may dispose of the conjugal property
without the wife’s consent if such sale is necessary to answer for the
conjugal liabilities mentioned in Art.161 and 162 of the Civil Code.
 RULE UNDER THE FAMILY CODE
• Rule stated in art.124 of the family code may only be applied to any
alienation or encumbrance of the conjugal partnership property after
the effectivity of the Family code on August 3, 1988, even if the
conjugal partnership was already in existence prior to its effectivity.
 CONTRACT, VOID IN ITS
ENTIRETY
• Prior to the liquidation of the conjugal partnership the interest of
each spouse in the conjugal assets is inchoate, a mere expectancy,
w/c constitutes neither a legal nor equitable estate and does not
ripen into title until it appears that there are assets in the community
as a result of the liquidation and the settlement.
• Thus, right of a husband or wife to one-half of the conjugal assets
does not vest until the dissolution and liquidation of the conjugal
partnership, or after the dissolution and liquidation of the conjugal
partnership or after the dissolution of marriage.
 BUYER IN GOOD FAITH
• Requisties:
• The diligence in verifying the validity of the title covering the property.
• The diligence in inquiring into the authority of the transacting spouse to sell
conjugal property in behalf of the other spouse.
 DONATION OF THE CONJUGAL
PROPERTY
• Since donation is also a form of disposition neither spouse may
donate CPP without the consent of the other spouse.
• Code allows neither spouse, even w/out consent of the other, to make
moderate donations from the conjugal partnership property for
charity or on occasions of family rejoicing or family distress.
 DISPOSITIONS OF SPOUSE’S INTEREST IN THE
CONJUGAL PARTNERSHIP

• Any disposition of the spouse’s respective share or interest in the

conjugal partnership shall be void since such right to one-half of the
conjugal asset does not vest until the liquidation of the conjugal
partnership.
• The spouse are not prohibited from disposing by will of his her
interest in the conjugal partnership.
 DISSOLUTION OF CONJUGAL
PARTNERSHIP REGIME
• Art. 126. The Conjugal Partnership terminates
• Upon death of either spouse
• When there is a decree of Legal Separation
• When the marriage is annulled or declared void
• In case of judicial separation of property during the marriage under
articles 134 to 138.(175a)