TITLE III: RIGHTS AND OBLIGATIONS BETWEEN HUSBAND AND WIFE

Art. 68. The husband and wife are obliged to live together, observe mutual love, respect and fidelity, and render mutual
help and support.

 “Mutual help”
(1) Not only financial
(2) Refers to Article 71: Maintenance of the household
 Civil Code: Husband administers property
 Family Code: Both husband and wife are obliged to administer
 Argentine Code: Man can physically carry woman to the house (not applicable in the PH)

 Of all three obligations, the most difficult to observe is fidelity.

CASE:
Ilusorio vs. Bildner
-Husband refuses to live with wife and lived instead with daughter
-Habeas corpus “produce the body”
-Remedy of wife: To withhold the court, but not compel the other spouse to live with her because this obligation is
purely personal between husband and wife.

Art. 69. The husband and wife shall fix the family domicile. In case of disagreement, the court shall decide.
The court may exempt one spouse from living with the other if the latter should live abroad or there are other valid and
compelling reasons for the exemption. However, such exemption shall not apply if the same is not compatible with the
solidarity of the family.

 Fixing the family domicile used to be purely the husband’s decision

 Exceptions: The court may exempt one from living with the other if:
a. One/both spouses live abroad (also if one spouse is in the Philippines, but assigned to a place far from the
family home like members of the AFP)
b. There are other valid and compelling reasons
 Exception to the exception: The court may not exempt the wife from joining the husband if it would not be
compatible with the solidarity of the family.

Art. 70. The spouses are jointly responsible for the support of the family. The expenses for such support and other
conjugal obligations shall be paid from the community property and, in the absence thereof, from the income or fruits of
their separate properties. In case of insufficiency or absence of said income or fruits, such obligations shall be satisfied
from the separate properties.

Expenses for support shall be paid from:

1. Community property or conjugal property
2. Fruits* or income of #1
3. Separate properties

Fruits (Article 442, Civil Code)

a. Natural fruits are the spontaneous products of the soil, and the young and other products of animals.
b. Industrial fruits are those produced by lands of any kind through cultivation or labor.
c. Civil fruits are the rents of buildings, the price of leases of lands and other property and the amount of
perpetual or life annuities or other similar income.

Art. 71. The management of the household shall be the right and the duty of both spouses. The expenses for such
management shall be paid in accordance with the provisions of Article 70

Refers to maintenance of family and household.

Art. 72. When one of the spouses neglects his or her duties to the conjugal union or commits acts which tend to bring
danger, dishonor or injury to the other or to the family, the aggrieved party may apply to the court for relief.

Refers to:
(1) NEGLECT of either husband or wife to his/her duties
(2) ACTS which tend to bring danger, dishonor, or injury

Relief:
a. Writ of injunction- to stop an act.
b. Third person may be appointed by the court as “receiver” if there is danger to assets (receivership)
c. Appointment of a guardian

Art. 73. Either spouse may exercise any legitimate profession, occupation, business or activity without the consent of the
other. The latter may object only on valid, serious, and moral grounds.
In case of disagreement, the court shall decide whether or not:
(1) The objection is proper; and
(2) Benefit has occurred to the family prior to the objection or thereafter. If the benefit accrued prior to the
objection, the resulting obligation shall be enforced against the separate property of the spouse who has not
obtained consent.
The foregoing provisions shall not prejudice the rights of creditors who acted in good faith.

Spouses are allowed to exercise LOBA without objection.

 If the husband objects, he is liable under RA 9262 (Section 3(d)) “Economic abuse”
 Objection must only be made on VSM: valid, serious, and moral grounds.
 Example of valid ground: If the wife is married to a very rich person and she doesn’t need to work.
 Example of serious ground: If the husband works as a gay bar dancer or the wife works as a GRO (Reason: There
is always temptation to stray from the duty of fidelity).
 The court has to decide if the objection is proper.
 If the objection is proper and if obligations are incurred:
(a) If the benefit accrued to the family prior to the objection, the absolute community or conjugal partnership
is liable.
(b) If the benefit accrued to the family after the objection, profits or income from the acts or transactions of
the spouse who acted without consent is liable.

By wording of law, it would appear that spouses still need the consent of each other.

TITLE IV: PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE

CHAPTER 1: GENERAL PROVISIONS
Art. 74. The property relationship between husband and wife shall be governed in the following order:
(1) By marriage settlements executed before the marriage;
(2) By the provisions of this Code; and
(3) By the local custom.

How governed: MPL

Requisites for marriage settlements: BNGWM

(1) Must be made BEFORE the celebration of the marriage (even modifications)
 (2) Must NOT contain provisions contrary to law, good morals, public order, and public policy
(3) Must GENERALLY confine itself only to property relations
(4) Must be made in WRITING (need not be in a public instrument, except for purpose of affecting third persons)
(5) If made by MINORS, parents must consent by signing also (not anymore applicable)

 Refers to property relations

 Primarily governed by marriage settlement (pre-nuptial agreement)
 No prohibitions in the marriage settlement, but there must be SPECIFIC AMOUNTS, otherwise it is void.

1. By MARRIAGE settlements executed before the marriage

o Absolute Community of Property- all properties brought to the marriage shall belong to the ACP
(except Article 92).
o Conjugal Partnership of Gains- most ideal (reason: whatever is brought to the marriage belongs to
husband/wife exclusively, no need for consent for disposing, destroying, donating with conditions –
“attributes of ownership”).
o Complete Separation of Property- what’s yours is yours, what’s mine is mine.

2. By the PROVISIONS of this Code

o Provisions shall only apply if the marriage settlement is void, or if the spouses do not agree on a
property regime.
o Default property regime under the Civil Code: CPG
o Default property regime under the Family Code: ACP

3. By the LOCAL custom

 Other examples of property regime: complete merger

Art. 75. The future spouses may, in the marriage settlements, agree upon the regime of absolute community, conjugal
partnership of gains, complete separation of property, or any other regime. In the absence of a marriage settlement, or
when the regime agreed upon is void, the system of absolute community of property as established in this Code shall
govern.

a. ACP: Husband and wife are co-owners of all properties that they bring together into the marriage.*
b. CPG: Only net profits of the partnership are divided between spouses.
c. CSP
d. Any other regime

*Cannot exclude specific properties from the regime

Any modification to the marriage settlement must be made before the celebration of marriage, otherwise, the marriage
settlement is void.

Art. 76. In order that any modification in the marriage settlements may be valid, it must be made before the celebration
of the marriage, subject to the provisions of Articles 66, 67, 128, 135 and 136.

Exceptions to Art. 74 (B): RRA-CJ

1. Reconciliation in legal separation

2. Revival of former property regime
3. Abandonment or failure of the spouse to comply with essential marital obligations, rights, and duties
4. Causes for judicial separation
5. Judicial separation is jointly initiated by spouses
Art. 77. The marriage settlements and any modification thereof shall be in writing, signed by the parties and executed
before the celebration of the marriage. They shall not prejudice third persons unless they are registered in the local civil
registry where the marriage contract is recorded as well as in the proper registries of properties.

Exceptions to Art. 74 (W):

They can only prejudice a third party if the marriage settlement is registered in the:
1. Local civil registry where the marriage was contracted
2. In the proper registry of properties

“Doctrine of immutability of matrimonial property regime”

-Original property regime at the start of the marriage remains
-Purpose: To maintain stability of the relationship

“Mutability of the law”

-When the law of the original matrimony changes, the property regime shall change accordingly
-Example: CPG was changed by ACP

Art. 78. A minor who according to law may contract marriage may also execute his or her marriage settlements, but they
shall be valid only if the persons designated in Article 14 to give consent to the marriage are made parties to the
agreement, subject to the provisions of Title IX of this Code.

-Explanation to Art. 74 (W)

-No longer applicable because the age of majority today is 18 years old.
-RA 6809: Before this, those between the ages of 18 and 21 are still deemed to be minors.
-RA 6809 changed the age of majority from 21 to 18 to attain full political and civil rights.
-Exception to the age of majority of 18-21: Marriage still needs parental consent

Art. 79. For the validity of any marriage settlement executed by a person upon whom a sentence of civil interdiction has
been pronounced or who is subject to any other disability, it shall be indispensable for the guardian appointed by a
competent court to be made a party thereto.

This is an important provision.

Explanation to Art. 74 (M)

1. If sentenced to the accessory penalty of civil interdiction
2. If suffering from disability
-Guardian must be made a party to the marriage settlement to validly execute it

“Civil interdiction”
-Accessory penalty attached to reclusion temporal or death.
-If one is a civil interdictee, he is deprived of his civil rights and considered civilly dead
-Exceptions:
(1) He can contract marriage and execute pre-nuptial agreement or marriage settlements
(2) He can donate properties mortis causa.
BUT:
(a) Through a guardian appointed by the court.
(b) It is mandatory that the guardian be made a party to the marriage settlement.

Art. 80. In the absence of a contrary stipulation in a marriage settlement, the property relations of the spouses shall be
governed by Philippine laws, regardless of the place of the celebration of the marriage and their residence.
This rule shall not apply:
 (1) Where both spouses are aliens;
(2) With respect to the extrinsic validity of contracts affecting property not situated in the Philippines and
executed in the country where the property is located; and
(3) With respect to the extrinsic validity of contracts entered into in the Philippines but affecting property
situated in a foreign country whose laws require different formalities for its extrinsic validity.

-Based on our adherence to the nationality principle (Article 15 of Civil Code)

-Art. 80 (2) is based on Article 17 (1) in relation to Article 16 (1) of the Civil Code

Exceptions: AEE
1. A- where both spouses are ALIENS.
2. E- with respect to the EXTRINSIC validity of contracts affecting property not situated in the Philippines and
executed in the country where situated.
3. E- with respect to the EXTRINSIC validity of contracts affecting property not situated in the Philippines, even if
executed here.
-The party should go to the consular/diplomatic office of the country where the property is situated.

Mixed marriages:
-If husband is Filipino, Philippine laws apply.
-If husband is a foreigner, the national law of the husband applies.

Art. 81. Everything stipulated in the settlements or contracts referred to in the preceding articles in consideration of a
future marriage, including donations between the prospective spouses made therein, shall be rendered void if the
marriage does not take place. However, stipulations that do not depend upon the celebration of the marriages shall be
valid.

-Void if the marriage does not take place.

-The marriage settlement shall be deemed without effect.
-Exceptions: Stipulations that do not depend upon the celebration of the marriages.
-Examples:
 Properties concerning succession of children in previous marriages
 Indebtedness of husband and wife to each other
 If the woman is already pregnant and the husband acknowledged the child as his, then his obligation to
give support to the child does not depend on the marriage
 Husband promises to give monthly stipend to child

CHAPTER 2: DONATIONS BY REASON OF MARRIAGE

Art. 82. Donations by reason of marriage are those which are made before its celebration, in consideration of the same,
and in favor of one or both of the future spouses.

Donations proper nuptias- donations before marriage.

Requisites: BCF (burger, chicken, fries)

1. Must be made BEFORE the celebration of the marriage.
2. Must be made in CONSIDERATION of the same.
3. Must be made in FAVOR of one or both of the spouses.

Etiquette: Gifts must be delivered to house of future bride before celebration of the marriage.

-If one requisite is not present, it ceases to be a donation by reason of marriage (which may be revoked by reason of
law). It becomes just an ordinary donation.
Donations on “Statute of Frauds” (as defined in Article 1403 (2) of the New Civil Code)
-Those made in consideration of marriage – but no formalities mentioned
-Valid but unenforceable through court action due to absence of written contract (because there is no written contract)
-Under the Family Code: To be valid, formalities must be observed (not only enforceable).
-Immovables and movables above P5,000 must be:
(1) in a public instrument
(2) acceptance must also be in a public instrument
-Otherwise, void.
-Movables below P5,000 must be in writing only, and acceptance also in writing (ex. thank you notes)

Art. 83. These donations are governed by the rules on ordinary donations established in Title III of Book III of the Civil
Code, insofar as they are not modified by the following articles.

Follows the form of ordinary donations, including oral donations.

Art. 84. 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 one-fifth of their present property. Any excess shall be considered
void.
Donations of future property shall be governed by the provisions on testamentary succession and the formalities of wills.

(1) First paragraph: Present property

(2) Second paragraph: Future property

Donations involving present property:

-Only the excess is void.
-Donations within 1/5 of the present property is valid.

Donations involving future property:

-No limitations.
-Requirement: Must be in the form of a will.

Art. 85. Donations by reason of marriage of property subject to encumbrances shall be valid. In case of foreclosure of the
encumbrance and the property is sold for less than the total amount of the obligation secured, the donee shall not be
liable for the deficiency. If the property is sold for more than the total amount of said obligation, the donee shall be
entitled to the excess.

Limitations of donation subject to encumbrances (mortgage, charge on property):

1. Shall be valid
2. In case of foreclosure and sold for LESS than the total amount of the obligation secured, donee is not liable for
the deficiency.
3. In case of foreclosure and sold for MORE than the total amount of the obligation secured, done shall be entitled
to the excess.

Art. 86. A donation by reason of marriage may be revoked by the donor in the following cases:
(1) If the marriage is not celebrated or judicially declared void ab initio except donations made in the marriage
settlements, which shall be governed by Article 81;
(2) When the marriage takes place without the consent of the parents or guardian, as required by law;
(3) When the marriage is annulled, and the donee acted in bad faith;
(4) Upon legal separation, the donee being the guilty spouse;
(5) If it is with a resolutory condition and the condition is complied with;
(6) When the donee has committed an act of ingratitude as specified by the provisions of the Civil Code on
donations in general.
A donation by reason of marriage may be revoked by the donor.
It is at the option of the donor.

How revoked: NWALRA

1. If the marriage is NOT celebrated or judicially declared void ab initio.
-Reason: No basis for donation.
-If the done is aware of the fact that the marriage is void, he does not have an automatic right to revoke the
donation. There needs to be a judicial decree.
2. Marriage takes place WITHOUT consent of parents or guardians as required by law.
-Donations subject to exception under Art. 81 will subsist and remain valid.
3. Marriage is ANNULLED and donee acted in bad faith
-Requires decree of annulment before the donor may revoke the donation.
4. Upon LEGAL SEPARATION, and done is guilty spouse
5. If with RESOLUTORY CONDITION and is complied with
-Resolutory condition- when complied extinguishes an obligation
-Example: I will give you a house and lot provided that you will not separate.
-As opposed to suspensive condition, which gives rise to an obligation when complied with/fulfilled (ex. I will
give you a house and lot if a child is born within a year of your marriage)
6. Donee commited an ACT of ingratitude.
-These acts are enumerated in Article 765 of the Civil Code

What is the prescriptive period?

-Art. 86 does not mention the period to revoke.
-But the prescriptive period is 5 years.
-BASIS: Article 1149 of the Civil Code
-This also correlates on effects of legal separation.
-All the more reason that there should be limitations under Art. 86
-Reason: Prejudicial to the other party

Art. 87. Every donation or grant of gratuitous advantage, direct or indirect, between the spouses during the marriage
shall be void, except moderate gifts which the spouses may give each other on the occasion of any family rejoicing. The
prohibition shall also apply to persons living together as husband and wife without a valid marriage.

“Grant of gratuitous advantage” – ex. assigning income in favor of wife (void) or free use of things (void)
“Direct or indirect” – ex. donated to relative/child with the agreement that it will eventually be donated to wife
“Occasion of any family rejoicing” – ex. birth anniversaries, wedding anniversaries, etc.

Reasons:
(1) To protect creditors.
(2) To prevent the weaker spouse from being influenced by the stronger spouse.

Reasons why applicable to persons living together: If the rule were otherwise, those living in guilt would turn out to be in
a better position than those in legal union.

Exceptions: moderate gifts on family rejoicing

CHAPTER 3: SYSTEM OF ABSOLUTE COMMUNITY

Section 1: General Provisions
Art. 88. The absolute community of property between spouses shall commence at the precise moment that the marriage
is celebrated. Any stipulation, express or implied, for the commencement of the community regime at any other time
shall be void.
-Commence at the precise moment that they exchange I do’s.

Art. 89. No waiver of rights, shares and effects of the absolute community of property during the marriage can be made
except in case of judicial separation of property.
When the waiver takes place upon a judicial separation of property, or after the marriage has been dissolved or annulled,
the same shall appear in a public instrument and shall be recorded as provided in Article 77. The creditors of the spouse
who made such waiver may petition the court to rescind the waiver to the extent of the amount sufficient to cover the
amount of their credits.

General rule: No waiver of RIGHTS, INTERESTS, SHARES, and EFFECTS (RISE) of the ACP.

Exceptions:
1. In case of judicial separation of property while marriage is subsisting, as a result of legal separation
2. In case marriage is dissolved by death or is annulled

Requisites for waiver of exceptions:

1. Waiver must be in a public instrument (oral waiver is void)
2. Waiver must be recorded in the local civil registrar or in the proper registries of property

-Based on Articles 135/136

-Purpose of requisites for waiver: To inform third persons, especially creditors.

Art. 90. The provisions on co-ownership shall apply to the absolute community of property between the spouses in all
matters not provided for in this Chapter.

ACP:
-Primarily governed by provisions of the Family Code.
-If insufficient, then suppletorily governed by the Rules on co-ownership (only applicable in the ABSENCE of specific
provisions of the Family Code)

Section 2: What Constitutes Community Property

Art. 91. Unless otherwise provided in this Chapter or in the marriage settlements, the community property shall consist
of all the property owned by the spouses at the time of the celebration of the marriage or acquired thereafter.

-All property belonging to husband and wife before marriage are automatically converted into community property
without judicial act.
-Spouses have no option to exclude specific properties from community (except Art. 92).

Art. 92. The following shall be excluded from the community property:
(1) Property acquired during the marriage by gratuitous title by either spouse, and the fruits as well as the
income thereof, if any, unless it is expressly provided by the donor, testator or grantor that they shall form part
of the community property;
(2) Property for personal and exclusive use of either spouse. However, jewelry shall form part of the community
property;
(3) 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.

Exceptions to Article 91: GPL (Girl Please Lang)

1. Property acquired during the marriage by GRATUITOUS TITLE by either spouse & fruits and income
Exception: Provided otherwise by donor
2. Property for PERSONAL and exclusive use of either spouse
 Exception: Jewelry
-If the jewelry is acquired gratuitously during the marriage, it shall belong exclusively to the donee spouse.
3. Property before marriage with LEGITIMATE DESCENDANTS & fruits and income
-No exceptions
-Descendants, not children, so this includes grandchildren and great-grandchildren
-However, descendants must be legitimate

TITLES:
1. Onerous- has considerations (money, services, barter or exchange)
2. Gratuitous- out of love, donations inter vivos, mortis causa, succession, legitimes (covered by Art. 92)
3. Occupation

Art. 93. Property acquired during the marriage is presumed to belong to the community, unless it is proved that it is one
of those excluded therefrom.

Presumption.
Does not apply to Art. 92 (exceptions).

Section 3: Charges and Obligations of the Absolute Community

Art. 94. The absolute community of property shall be liable for:
(1) The support of the spouses, their common children, and legitimate children of either spouse; however, the
support of illegitimate children shall be governed by the provisions of this Code on Support;
(2) All debts and obligations contracted during the marriage by the designated administrator-spouse for the
benefit of the community, or by both spouses, or by one spouse 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;
(4) All taxes, liens, charges and expenses, including major or minor repairs, upon the community property;
(5) All taxes and expenses for mere preservation made during marriage upon the separate property of either
spouse used by the family;
(6) Expenses to enable either spouse to commence or complete a professional or vocational course, or other
activity for self-improvement;
(7) Ante-nuptial debts of either spouse insofar as they have redounded to the benefit of the family;
(8) 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 a professional or vocational course or other activity for self-
improvement;
(9) Ante-nuptial debts of either spouse other than those falling under paragraph (7) of this Article, the support
of illegitimate children of either spouse, and liabilities incurred by either spouse by reason of a crime or a quasi-
delict, in case of absence or insufficiency of the exclusive property of the debtor-spouse, the payment of which
shall be considered as advances to be deducted from the share of the debtor-spouse upon liquidation of the
community; and
(10) Expenses of litigation between the spouses unless the suit is found to be groundless.
If the community property is insufficient to cover the foregoing liabilities, except those falling under paragraph
(9), the spouses shall be solidarily liable for the unpaid balance with their separate properties.

SDDTT, EAVAE

1. For support of illegitimate children, the general rule is that it cannot be charged against the community
property.
2. Exception to Art. 96 on administration.
3. Only if redounded to the benefit of the family.
4. Including major and minor repairs.
5. Whether movable or immovable, unlike in CPG (ex. car).
 6. “Activity for self-improvement” – examples are going to the gym (it affects the health) or going to culinary
school. Rhinoplasty or the use of glutathione are not self-improvement within the meaning of the law.
7. Debts before the marriage.
8. ---
9. General rule: Cannot be charged against ACP.
Exception: Debtor spouse does not have sufficient property to answer for obligations (considered as advances
and shall be deducted from share of debtor spouse at the time of termination of the ACP).
10. Unless the case is found to be groundless.

Acts of Dominion vs. Acts of Administration

Acts of Dominion/Ownership:
-Spouse obtained loan using property as collateral
-Reason: property may be foreclosed and sold in public auction
-Entering into compromise

Acts of Administration:
-Demanding payment of rents for house on lease
-Property is renovated

Solidary liability vs. Joint obligation

Solidary liability:
-Payment is from husband/wife for entire amount of the balance
-Satisfied entirely by debtor spouse upon whom demand is made

Art. 95. Whatever may be lost during the marriage in any game of chance, 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
community but any winnings therefrom shall form part of the community property.

-Gambler bears losses

-Winnings go to community property
-Same as Art. 123
-This refers to gambling that are either allowed or prohibited by law.

Section 4: Ownership, Administrative, Enjoyment and Disposition of the Community Property

Art. 96. The administration and enjoyment of the community property shall belong to both spouses jointly. 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.
In the event that one spouse is incapacitated or otherwise unable to participate in the administration of the common
properties, the other spouse may assume sole powers of administration. These powers do not include disposition or
encumbrance without authority of the court or the written consent of the other spouse. In the absence of such authority
or consent, 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 the
acceptance by the other spouse or authorization by the court before the offer is withdrawn by either or both offerors.

“Disposition or encumbrance” – refers to acts of dominion or ownership

“Encumbrance” – mortgage or charge

General rule: Joint administration and enjoyment by both husband and wife.
Exception: Husband prevails, subject to recourse to court by wife for proper remedy (prescription: 5 years from
implementation of husband’s decision)

-Transaction entered into by one spouse without consent of the other is deemed a “continuing offer” subject to
ratification by the spouse without consent.
-It is void only to the spouse who did not give his/her written consent.

-Sole powers of administration do not include the disposition or encumbrance of properties without authority of the
court or written consent of the other spouse.
-This is an “act of dominion”
-An act of dominion or ownership requires the written consent of the other spouse or judicial authorization.

-Even if the decision of the husband is prejudicial to the community property, the only way for the wife to object is
through a petition to the court.

“Incapacitated”
-An example is if the spouse is hospitalized in the ICU.
-If the spouse is abroad, sufficient is an SPA executed before the consular office of the Philippines for his/her consent.

“Unable”
-For example, the spouse disappeared, or he/she has abandoned the conjugal home.

Art. 97. Either spouse may dispose by will of his or her interest in the community property.

“By will” – donation mortis causa is allowed

“Interest” – refers not to the share, but interest only (because rights are not yet vested)

-Subject to the procedure on Art. 102 on liquidation (obligations of the ACP)

 Either spouse may not dispose inter vivos of his interest to the extend of ½ of the community property.
Exception: Where otherwise stipulated in the marriage settlement.
 Disposition is only by will, observing:
(1) Formalities of will
(2) Provisions on legitimes
 Reason: Rights become vested only upon the termination of the community property. Otherwise, the rights of
the parties are merely inchoate.

Art. 98. Neither spouse may donate any community property without the consent of the other. However, either spouse
may, without the consent of the other, make moderate donations from the community property for charity or on
occasions of family rejoicing or family distress.

Donations need common consent.

Exception: Moderate donation for:
(1) Charity
(2) Occasions of family rejoicing or distress (in contrast to Art. 87)

General rule: Spouses are not allowed to make donations (inter vivos), unless the other spouse consents to the donation.

“Moderate”- depends on the financial capacity of the ACP

Section 5: Dissolution of Absolute Community Regime

Art 99. The absolute community terminates:
(1) Upon the 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.

DLAJ – Don’t Laugh And Jump!

“In case of judicial separation” is in relation to Arts. 135 or 136.

Art. 100. The separation in fact between husband and wife shall not affect the regime of absolute community 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 community property, the separate property of both spouses shall be solidarily liable for
the support of the family. The spouse present shall, upon proper 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.

“Separation in fact”
-No judicial decree of judicial separation
-Termination of cohabitation
-But spouses might still comply with their mutual duty to support each other, and duty to support and maintain children

LCA: Loudly Cry Alone

-Refers to a situation where spouses are separated in fact.

-Agreed to separate without decree of legal separation.
-Effect: Property regime is not terminated. It continues to exist.

(1) “Just cause”- ex. physical abuse

(Because support is charged to the absolute community of property)
(2) Example, if the spouse abandoned the conjugal dwelling under Art. 101
(3) Here, it would be assumed that the aggrieved spouse does not have sufficient funds from his/her exclusive
property.

Art. 101. 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 absolute community, subject to such precautionary conditions as the court may impose.
The obligations to the family mentioned in the preceding paragraph refer to marital, parental or property relations.
A spouse is deemed to have abandoned the other when her or she has left the conjugal dwelling without intention of
returning. 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.

Abandonment
-Not mere separation de facto
-Implies an intention never to return to the conjugal home*
-Without providing for the needs and maintenance of the family

*Left conjugal dwelling for three months and failed within three months to give information on whereabouts
OR

Fails to comply with obligations

-Marital
-Parental
-Property relations

The present spouse may petition for:

1. Receivership
2. Judicial separation of property
3. Authority to be the sole administrator of the absolute community

Section 6: Liquidation of the Absolute Community Assets and Liabilities

Art. 102. Upon dissolution of the absolute community regime, the following procedure shall apply:
(1) An inventory shall be prepared, listing separately all the properties of the absolute community and the exclusive
properties of each spouse.
(2) The debts and obligations of the absolute community shall be paid out of its assets. In case of insufficiency of said
assets, the spouses shall be solidarily liable for the unpaid balance with their separate properties in accordance with the
provisions of the second paragraph of Article 94.
(3) Whatever remains of the exclusive properties of the spouses shall thereafter be delivered to each of them.
(4) The net remainder of the properties of the absolute community shall constitute its net assets, which shall be divided
equally between husband and wife, unless a different proportion or division was agreed upon in the marriage
settlements, or unless there has been a voluntary waiver of such share provided in this Code. For purpose of computing
the net profits subject to forfeiture in accordance with Articles 43, No. (2) and 63, No. (2), the said profits shall be the
increase in value between the market value of the community property at the time of the celebration of the marriage
and the market value at the time of its dissolution.
(5) The presumptive legitimes of the common children shall be delivered upon partition, in accordance with Article 51.(6)
Unless otherwise agreed upon by the parties, in the partition of the properties, the conjugal dwelling and the lot on
which it is situated shall be adjudicated to the spouse with whom the majority of the common children choose to
remain. Children below the age of seven years are deemed to have chosen the mother, unless the court has decided
otherwise. In case there in no such majority, the court shall decide, taking into consideration the best interests of said
children.

This is the same procedure.

IDENPC (I Don’t Enjoy Noting Philo and Consti)

Net remainder: Net assets (after all liabilities had been paid)
Net profits: Increase in value between market value of community property at the time of the celebration of the
marriage and market value at the time of its dissolution

Net remainder is divided equally, unless:

-A different proportion or division was agreed upon in the marriage
-There is voluntary waiver of share

(3) If there is remainder from the respective exclusive properties

(4) Remainder from the community assets
(5) Delivery of presumptive legitimes
(6) Net assets is different from net profits.
This is only true when community property is terminated by legal separation, annulment, or
declaration of nullity. If it is terminated by death, the children will inherit their legitime per se.
-There is no liquidation of the conjugal home. It is awarded to the spouse where majority of the children choose to
remain.

Art. 103. Upon the termination of the marriage by death, the community property shall be liquidated in the same
proceeding for the settlement of the estate of the deceased.
If no judicial settlement proceeding is instituted, the surviving spouse shall liquidate the community property either
judicially or extra-judicially within one year from the death of the deceased spouse. If upon the lapse of the one year
period, no liquidation is made, any disposition or encumbrance involving the community property of the terminated
marriage shall be void.
Should the surviving spouse contract a subsequent marriage without compliance with the foregoing requirements, a
mandatory regime of complete separation of property shall govern the property relations of the subsequent marriage.

Order of liquidation of community property:

a. Judicial settlement/ judicial proceeding of the estate of the deceased.
b. Judicially or extra-judicially liquidated within 1 year from death.
c. If after 1 year there is no liquidation, then any disposition or encumbrance involving the community property is
void in its entirety.
d. Should the surviving spouse contract a subsequent marriage without compliance, there is a mandatory regime
of complete separation of property relations to the subsequent marriage. (Read: Heirs of Caburnay)

-Even if the marriage settlement is ACP, there are still exclusive properties of the spouses. Hence, there is a proceeding
for settlement of the estate upon death.
-“Judicially”- court
-“Extra-judicially”- just go to a lawyer, especially if there are no debts

Purpose of the third paragraph is to prevent co-mingling.

Art. 104. Whenever the liquidation of the community properties of two or more marriages contracted by the same
person before the effectivity of this Code is carried out simultaneously, the respective capital, fruits and income of each
community shall be determined upon such proof as may be considered according to the rules of evidence. In case of
doubt as to which community the existing properties belong, the same shall be divided between the different
communities in proportion to the capital and duration of each.

“Proof”- examples: titles (best proof), deed of sale or barter of exchange, any document that shows acquisition

Art. 104 is for marriages contracted before the enactment of the Family Code.

The respective fruits and capital of each community shall be determined:

a. Upon such proof as may be considered according to the rules of evidence.
b. Divided between the different communities in proportion to their capital and duration of each.

This refers to a situation where there are 2 or more ACP terminated and there is no liquidation, and these are carried out
simultaneously.

CHAPTER 4: CONJUGAL PARTNERSHIP OF GAINS

Section 1: General Provisions
Art. 105. In case the future spouses agree in the marriage settlements that the regime of conjugal partnership gains shall
govern their property relations during marriage, the provisions in this Chapter shall be of supplementary application.
The provisions of this Chapter shall also apply to conjugal partnerships of gains already established between spouses
before the effectivity of this Code, without prejudice to vested rights already acquired in accordance with the Civil Code
or other laws, as provided in Article 256.
-CPG is the default property regime under the Civil Code.
-Under the Family Code, this must be expressly agreed upon by the spouses through a marriage settlement.

CPG is primarily governed by the Special Rules of Partnership under the Civil Code (Rules on the Contract of Partnership).
It is supplementarily governed by the provisions of the Family Code.

Read: Homeowner Savings Bank

This is also applicable to CPG before the effectivity of the Family Code, without prejudice to the vested rights in
accordance with the Civil Code.

-Parties must execute a marriage settlement/ pre-nuptial agreement for CPG.

-2nd paragraph: CPG under the Civil Code (default property regime here).
-What does CPG consist of? Answer is Art. 106.

Art. 106. 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 or both spouses shall be divided equally between them, unless otherwise agreed in the marriage settlements.

Art. 106 = Art. 91

“Chance” – refers to gambling or hidden treasure

Common fund:
-PPFI: Proceeds, Products, Fruits, and Income from their separate properties.
-Properties acquired by either or both spouses through their efforts or by chance.

Upon dissolution:
-Net gains and benefits obtained by either or both spouses shall be divided equally between them.

Art. 107. The rules provided in Articles 88 and 89 shall also apply to conjugal partnership of gains.

Art. 107 = Arts. 88 & 89

Art. 88: Commence at the precise moment that the marriage is celebrated (when shall CPG commence?)
Art. 99: No waiver of RISE of the CPG during the marriage can be made, except in case of judicial separation of property.
-During the marriage and in the event of a waiver, it must:
(1) Be in a public instrument
(2) Recorded in the civil registry or proper registry for properties
-Otherwise, creditors of the waiver will presume that the marriage settlement is ACP and may petition the court to
rescind (not annul) the waiver to the extent of the amount sufficient to cover the credit.

Art. 108. The conjugal partnership shall be governed by the rules on the contract of partnership in all that is not in
conflict with what is expressly determined in this Chapter or by the spouses in their marriage settlements.

What generally governs CPG: Rules on the Contract of Partnership in the Family Code
-As long as it is not in conflict with:
a. What is expressly determined in this chapter
b. By the spouses in their marriage settlements

CPG is governed suppletorily by the Family Code.

Read case: Homeowners Savings Bank

Section 2: Exclusive Property of Each Spouse

Art. 109. The following shall be the exclusive property 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 exclusive money of the wife or of the husband.

BGRE: Blue, Green, and Red Elves

Capital- exclusive property of the husband

Paraphernal- exclusive property of the wife

This is different from Art. 92 on the ACP.

Art. 110. The spouses retain the ownership, possession, administration and enjoyment of their exclusive properties.
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 the property is located.

This refers to transfer of administration.

-Public instrument
-Registered in the registry of property of the place where the property is located

Art. 111. A spouse of age may mortgage, encumber, alienate or otherwise dispose of his or her exclusive property,
without the consent of the other spouse, and appear alone in court to litigate with regard to the same.

Needs no consent.
There is no longer a spouse not of age.
Age of majority is now 18.

Art. 112. 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.

If a spouse administers exclusive property of another spouse and alienates such, administration automatically
terminates, and proceeds of the alienation shall be turned over to the owner-spouse.

-Under Art. 110 (2), owner-spouse may transfer administration of his/her exclusive property to the other spouse.
-If there is alienation, the administration by the other spouse will terminate, and he/she must turn over the proceeds to
the other spouse.

Art. 113. Property donated or left by will to the spouses, jointly and with designation of determinate shares, shall pertain
to the donee-spouses 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.

Note: Arts. 113 and 114 are the exceptions to the general rule that liabilities in Art. 121 must have been satisfied
(redounded to the benefit of the family)

Property donated or left by will- exclusive property.

If jointly without determinate shares- exclusive property (1/2 for each)

Right of accretion (refuses/cannot receive share). When does it take place?

1. Spouse refuses to accept
2. Spouse is incapacitated to accept
3. Spouse dies before the perfection of the donation

Art. 114. 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.

“Onerous”- involving heavy obligations

Donations that are onerous- charges shall be borne by the exclusive property of the done spouse, if advanced by the
conjugal partnership.

What is the donation is onerous? (as opposed to a simple donation where there are no conditions attached)
Can conditions be advanced by the conjugal partnership if spouse does not have enough exclusive funds?
Exception: The law allows the conjugal partnership to advance to comply with onerous conditions.

Example: If a daycare center construction costs more than the lot, will it belong to the conjugal partnership?
No. The daycare center does not redound to the benefit of the family. It remains the exclusive property of the spouse.

Art. 115. 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.

Retirement: Governed by the Rules on Gratuitous or Onerous Acquisitions

Reason:
If the acquisition is onerous, it belongs to the conjugal partnership.
If the acquisition is gratuitous, it belongs to the owner-spouse.

Examples:
Salary- belongs to the conjugal partnership.
Tips- exclusive (it is an example of gratuity).

Insurance- belongs to the conjugal partnership.

Benefits- exclusive.
*The determination would be “were conjugal funds used in the payment of the same?”

Section 3: Conjugal Partnership Property

Art. 116. 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.

All property acquired during the marriage, whether registered in the name of one or both spouses.

Art. 117. The following are conjugal partnership properties:

(1) Those 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) Those 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; and
(7) Those which are acquired by chance, such as winnings from gambling or betting. However, losses therefrom shall be
borne exclusively by the loser-spouse.

Note:
-Arts. 117-120 refer to properties belong to the conjugal partnership.
-Arts. 118-120 refer to properties with certain conditions to belong to the conjugal partnership.

OLF SOLC

(1) Presumed to belong to the conjugal partnership.

(2) No discussion.
(3) Natural: Made without the intervention of man (ex. cogon grass, wild durian)
Industrial: With the intervention of man (ex. planting durian or mangoes)
Civil: Rents and other sources where there is payment paid out of property
(4) To discuss further in Property class.
(5) Must be an occupation, not a hobby. If fishing is merely a hobby, the proceeds do not belong to the conjugal
partnership.
(6) Example: When 2 cows (1 of the wife, 1 of the husband) bear a calf, the calf is the excess.

Art. 118. 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.

Arts. 118-120 form part of the conjugal partnership.

Full ownership:
1. Vested before marriage- belongs to the buyer/buyers
2. Vested during marriage- belongs to the conjugal partnership
Even if the conjugal partnership only paid out one percent. The basis is not the value, rather the vesting of
ownership.

2 ways of private property depending on contract entered into:

1. Contract to sell
-Ownership is reserved/retained by the vendor, although the vendor transferred the physical possession.
-Purpose: To ensure payment of purchase rights (so vendor holds the ownership)
-“Suspensive condition”
-When full payment of purchase price is paid during the marriage, this forms part of the conjugal partnership
(subject to reimbursement by the conjugal partnership)

2. Contract of sale
-Ownership is immediately transferred to the buyer (not only physical possession)
-Belongs to property of the owner-spouse, because ownership was already vested at the time of sale
-To reimburse if conjugal funds were used as payment

Art. 119. Whenever an amount or credit payable within a period of time belongs 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.

Refers to credit that is payable to the spouse.

For example, if one spouse is engaged in the business of lending money.

Principal and interest:

1. Before marriage – belongs to spouse
2. During marriage – principal belongs to spouse, interest belongs to conjugal partnership

Art. 120. The ownership of improvements, whether for utility or adornment, made on the separate property of the
spouses 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, subject to the following rules:
When the cost of the improvement made by the conjugal partnership and any resulting increase in value are more than
the value of the property at the time of the improvement, the entire property of one of the spouses shall belong to the
conjugal partnership, subject to reimbursement of the value of the property of the owner-spouse at the time of the
improvement; otherwise, said property shall be retained in ownership by the owner-spouse, likewise subject to
reimbursement of the cost of the improvement. In either case, the ownership of the entire property shall be vested upon
the reimbursement, which shall be made at the time of the liquidation of the conjugal partnership.

-On improvements
-Depends on value of improvements

Value of property at the time of improvement:

1. Cost of improvement & resulting increase in value is more – entire property belongs to conjugal partnership
2. Cost of improvement & resulting increase in value is less – entire property retained in ownership by owner-
spouse

Either way, subject to reimbursement of cost of improvement at the time of liquidation of conjugal partnership (at the
time of termination of the conjugal partnership).

Read case: Ferrer vs. Ferrer

-Court: Property still belongs to the husband. The value of improvement did not exceed the value of the principal.
-However, do not demand reimbursement from the third person.
-The remedy is to charge to the estate of the deceased.

-The term here is reimburse (not an advance)

Section 4: Charges Upon and Obligations of the Conjugal Partnership

Art. 121. The conjugal partnership shall be liable for:
(1) The support of the spouse, their common children, and the legitimate children of either spouse; however, the support
of illegitimate children shall be governed by the provisions of this Code on Support;
(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 benefited;
(4) All taxes, liens, charges, and expenses, including major or minor repairs upon the conjugal partnership property;
(5) All taxes and expenses for mere preservation made during the marriage upon the separate property of either spouse;
(6) Expenses to enable either spouse to commence or complete a professional, vocational, or other activity for self-
improvement;
(7) Ante-nuptial debts of either spouse insofar as they have redounded to the benefit of the family;
(8) 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 a professional or vocational course or other activity for self-
improvement; and
(9) Expenses of litigation between the spouses unless the suit is found to groundless.
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.

-Here, the creditor needs to prove that the obligations redounded to the benefit of the family.
-Unlike in Arts. 113-114 (exceptions)

Art. 121 = Art. 94 (except No. 9, which is found in Art. 122)

Art. 122. The payment of personal debts contracted by the husband or the wife before or during the marriage shall not
be charged to the conjugal properties partnership except insofar as they redounded to the benefit of the family.
Neither shall the fines and pecuniary indemnities imposed upon them be charged to the partnership.
However, the payment of personal debts contracted by either spouse before the marriage, that of fines and indemnities
imposed upon them, as well as the support of illegitimate children of either spouse, may be enforced against the
partnership assets after the responsibilities enumerated in the preceding Article 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 purpose above-mentioned.

Art. 122 = Art. 94 (9)

1. Ante-nuptial debts that have not benefitted the family.

2. Fines and pecuniary indemnities.

Cases:

Ayala Investments vs. CA/ Ching vs. CA (Philippine Blooming Mills)

-Benefits contemplated under Art. 122 (1): Must not be from salaries, but should be from the loan itself.

Buado vs. CA and Nicol

-Slander?
-Will never redound to the benefit of the family

Pana vs. Heirs of Juanete

-Clarified further here
-Wife was guilty of murder and civil liability arising from the crime
-Sheriff levied on the conjugal partnership of the accused
-Issue: Conversion of CPG to ACP
-Court: If exclusive property of debtor-spouse is insufficient to answer for liability, heirs do not need to wait for
termination of the conjugal partnership. They only need to see proof shown on the part of the creditor that obligations
under Art. 121 are satisfied, and there is still conjugal partnership to answer for the civil liability (earmarking only).

Art. 123. 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.

Art. 123 = Art. 95 (gambling)

-Refers to game of chance.

Section 5: Administration of the Conjugal Partnership Property

Art. 124. The administration and enjoyment of the conjugal partnership shall belong to both spouses jointly. 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.
In the event that one spouse is incapacitated or otherwise unable to participate in the administration of the conjugal
properties, the other spouse may assume sole powers of administration. These powers do not include disposition or
encumbrance without authority of the court or the written consent of the other spouse. In the absence of such authority
or consent, 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 the
acceptance by the other spouse or authorization by the court before the offer is withdrawn by either or both offerors.

Art. 124 = Art. 96 (administration)

Paragraph 2:
-Refers to a situation whereby one of the parties is unable to participate.
-On continuing offer: Perfected as soon as authority is given and/or consent is given.
-On continuing offer: Void as to the spouse who did not give consent.\

Remember:
-In the Civil Code, disposition of conjugal partnership without consent is different from the provisions of the Family Code.
-Read: Pelayo vs. Perez

-Under the Civil Code, the disposition of conjugal partnership without consent of the other spouse is not void, but merely
voidable.
-However, the period to seek annulment of transaction is different from periods given to contracts in general (4 years,
counted depending on the case).
-Here, the period is 10 years from the date of transaction, provided that it is made during the marriage.
-2 requisites: (1) 10 years, (2) made during the marriage.
-Subject to the requirement that it must redound to the benefit of the family.

Art. 125. Neither spouse may donate any conjugal partnership property without the consent of the other. However,
either spouse may, without the consent of the other, make moderate donations from the conjugal partnership property
for charity or on occasions of family rejoicing or family distress.

Art. 125 = Art. 98 (donations)

Section 6: Dissolution of Conjugal Partnership Regime

Art. 126. The conjugal partnership terminates:
(1) Upon the 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.

Art. 126 = Art. 99 (When does CPG terminate?)

Art. 127. 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 spouse 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.

Art. 127 = Art. 100

Art. 128. If a spouse without just cause abandons the other or fails to comply with his or her obligation 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.
The obligations to the family mentioned in the preceding paragraph refer to marital, parental or property relations.
A spouse is deemed to have abandoned the other when he or she has left the conjugal dwelling without intention of
returning. 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 = Art. 101

Section 7: Liquidation of the Conjugal Partnership Assets and Liabilities

Art. 129. Upon the dissolution of the conjugal partnership regime, the following procedure shall apply:
(1) An inventory shall be prepared, listing separately all the properties of the conjugal partnership and the exclusive
properties of each spouse.
(2) Amounts advanced by the conjugal partnership in payment of personal debts and obligations of either spouse shall be
credited to the conjugal partnership as an asset thereof.
(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) The debts and obligations of the conjugal partnership shall be paid out of the conjugal assets. In case of insufficiency
of said assets, the spouses shall be solidarily liable for the unpaid balance with their separate properties, in accordance
with the provisions of paragraph (2) of Article 121.
(5) Whatever remains of the exclusive properties of the spouses shall thereafter be delivered to each of them.
(6) Unless the owner had been indemnified from whatever source, the loss or deterioration of movables used for the
benefit of the family, belonging to either spouse, even due to fortuitous event, shall be paid to said spouse from the
conjugal funds, if any.
(7) The net remainder of the conjugal partnership properties shall constitute the profits, which shall be divided equally
between husband and wife, unless a different proportion or division was agreed upon in the marriage settlements or
unless there has been a voluntary waiver or forfeiture of such share as provided in this Code.
(8) The presumptive legitimes of the common children shall be delivered upon the partition in accordance with Article
51.
(9) In the partition of the properties, the conjugal dwelling and the lot on which it is situated shall, unless otherwise
agreed upon by the parties, be adjudicated to the spouse with whom the majority of the common children choose to
remain. Children below the age of seven years are deemed to have chosen the mother, unless the court has decided
otherwise. In case there is no such majority, the court shall decide, taking into consideration the best interests of said
children.

Art. 129 = Art. 102

Except: (2), (3), (6)

Art. 130. Upon the termination of the marriage by death, the conjugal partnership property shall be liquidated in the
same proceeding for the settlement of the estate of the deceased.
If no judicial settlement proceeding is instituted, the surviving spouse shall liquidate the conjugal partnership property
either judicially or extra-judicially within six months from the death of the deceased spouse. If upon the lapse of the six-
month period no liquidation is made, any disposition or encumbrance involving the conjugal partnership property of the
terminated marriage shall be void.
Should the surviving spouse contract a subsequent marriage without compliance with the foregoing requirements, a
mandatory regime of complete separation of property shall govern the property relations of the subsequent marriage.

Art. 130 = Art. 103

Question: If there are 10 hectares total, and 5 hectares is sold, is the sale valid?
Art. 103- no cases in its interpretation, but under Art. 130 on the CPG, there are 4.

Go vs. Cervantes
-Lito executed a waiver in favor of the father
-Father decided to sell property
-But there is absence of liquidation, said heirs
-Court: Sale is not void. For as long as what is sold is his inchoate share, that is valid, and as long as it will not encroach
on the share of the other sharers (no specific boundaries)
-If there are boundaries, that is void. (But buyer can put it in trust with heirs whose shares were encroached)
-If merely intellectual share, that is valid
-“No specific portion”
-Court said that the remedy is to have the property partitioned

Domingo vs. Molina

-Spouse died before the Family Code
-Court: To render void (because no consent of the wife) would be to prejudice the vested rights of the buyer

Uy vs. Fernandez
-Husband sold property without liquidating conjugal partnership first
-Same issue in Go
-Same ruling: Not necessarily void, as long as it will not encroach on the share of the other heirs prior to the partition

Carlos vs. Tolentino

-Grandma donated conjugal partnership in favor of grandchild, without consent of grandpa
-Grandson sold property
-Grandpa: (1) criminal case (2) annulment of sale
-Grandma dies
-Court: Petition for annulment of the donation has no more basis. Upon the death of the grandma, the conjugal
partnership dissolved. Donation of grandma to her share is valid, but restore to grandpa the portion that belongs to him.

REMEMBER: If specific portion is sold, that would be void.

Heirs of Caburnay
-2 marriages without liquidating the conjugal partnership of the 1st marriage
-If 2nd wife acknowledges the existence of co-ownership with heirs of the 1st marriage, would it require consent of the 2nd
wife is property is sold?
-Court: Consent of the 2nd wife is not required (Art. 145). Property exclusively belongs to the husband.
-Is 2nd marriage now governed by the ACP?
-Court: No, without liquidation of the 1st marriage, property regime is Complete Separation of Property.
-Was there contract of sale or contract to sell?
-Court: There was contract of sale. It was a perfected contract, as shown in the 3rd receipt.

Art. 131. Whenever the liquidation of the conjugal partnership properties of two or more marriages contracted by the
same person before the effectivity of this Code is carried out simultaneously, the respective capital, fruits and income of
each partnership shall be determined upon such proof as may be considered according to the rules of evidence. In case
of doubt as to which partnership the existing properties belong, the same shall be divided between the different
partnerships in proportion to the capital and duration of each.
Art. 131 = Art. 104

Art. 132. The Rules of Court on the administration of estates of deceased persons shall be observed in the appraisal and
sale of property of the conjugal partnership, and other matters which are not expressly determined in this Chapter.

Rules of Court:
Governs the appraisal and sale of property of the conjugal partnership

The administrator, under the Rules of Court, is entitled to payment for services rendered.

Art. 133. From the common mass of property support shall be given to the surviving spouse and to the children during
the liquidation of the inventoried property and until what belongs to them is delivered; but from this shall be deducted
that amount received for support which exceeds the fruits or rents pertaining to them.

For surviving spouses and children:

-Support is taken from the common mass of property.
-Deducted from what belongs to them in the inventory.

Reason: Generally, support is taken from the income of the conjugal partnership.

Support here refers only to legitimate children (illegitimate children are excluded).

Chapter 5: Separation of Property of the Spouses and Administration of Common Property by One Spouse During the
Marriage
Art. 134. In the absence of an express declaration in the marriage settlements, the separation of property between
spouses during the marriage shall not take place except by judicial order. Such judicial separation of property may either
be voluntary or for sufficient cause.

Judicial separation of property may either be:

1. Voluntary – This is under Art. 136
2. For sufficient cause – This is under Art. 135

Judicial separation of property is not perfected by mere consent, but upon the decree of the court approving the same.
Without judicial approval, the contract/agreement for separation of property is void.

Art. 134: Applies when the property regime of the spouses is other than the Complete Separation of Property.

Art. 135. Any of the following shall be considered sufficient cause for judicial separation of property:
(1) That the spouse of the petitioner has been sentenced to a penalty which carries with it civil interdiction;
(2) That the spouse of the petitioner has been judicially declared an absentee;
(3) That loss of parental authority of the spouse of petitioner has been decreed by the court;
(4) That the spouse of the petitioner has abandoned the latter or failed to comply with his or her obligations to the family
as provided for in Article 101;
(5) That the spouse granted the power of administration in the marriage settlements has abused that power; and
(6) That at the time of the petition, the spouses have been separated in fact for at least one year and reconciliation is
highly improbable.
In the cases provided for in Numbers (1), (2) and (3), the presentation of the final judgment against the guilty or absent
spouse shall be enough basis for the grant of the decree of judicial separation of property.

SJ-PAPS
(1) SENTENCED to penalty which carries civil interdiction
 (2) JUDICIALLY declared an absentee
(3) Loss of PARENTAL AUTHORITY has been decreed
 For 1-3, presentation of final judgment against the guilty/absent spouse shall be enough basis for the
decree of judicial separation of property.
 For the petition to successfully seek separation of property during the marriage, attach the decree to
the petition:
-Imprisonment that carries civil interdiction; or
-Declaring a person an absentee; or
-Depriving the defendant his/her parental authority
(4) ABANDONED the spouse or failed to comply with his/her obligations to the family
 Abandonment or failure to comply with obligations (marital, property, parental)
 Art. 101: Presumed abandonment if absent for 3 months and failed to inform on whereabouts
(5) Spouse granted the POWER OF ADMINISTRATION and abused such
(6) Spouses SEPARATED in fact
 Reconciliation is highly improbable.
 Separation in fact, not legal separation (legal separation already has judicial separation of property)

Noveras vs. Noveras

-There is no abandonment by the husband
-Wife knows the husband’s whereabouts
-Court: Appropriate ground is not 135 (4), but 135 (6)

Art. 136. The spouses may jointly file a verified petition with the court for the voluntary dissolution of the absolute
community or the conjugal partnership of gains, and for the separation of their common properties.
All creditors of the absolute community or of the conjugal partnership of gains, as well as the personal creditors of the
spouse, shall be listed in the petition and notified of the filing thereof. The court shall take measures to protect the
creditors and other persons with pecuniary interest.

Art. 136 refers to the voluntary judicial separation of property.

-It must be a joint verified petition, both for:

1. The dissolution of ACP or CPG, and
2. The separation of common properties
-All creditors of the ACP or CPG and personal creditors shall be listed in the judicial separation of properties and the filing
thereof.

-Refers to voluntary dissolution of properties.

-Once court grants the petition, the properties are governed by the Complete Separation of Property.
-The properties are dissolved/liquidated either according to Art. 102 (ACP) or Art. 129 (CPG), depending on the property
regime of the spouses.
-The petition must be registered in the civil registry or the proper registry for properties (Art. 139)
-There can be revival of the previous property regime under Art. 141
-The procedure for such revival is the same as in Art. 67
 Spouses agree on what to contribute anew to the restored regime
 Spouses agree on what to retain as his/her exclusive property

Bar question
Note: Voluntary dissolution can only be availed of once. The spouses cannot go back to court and seek the same remedy,
unlike in Art. 135 where there is no prohibition for as long as the ground exists.
Art. 137. Once the separation of property has been decreed, the absolute community or the conjugal partnership of
gains shall be liquidated in conformity with this Code.
During the pendency of the proceedings for separation of property, the absolute community or the conjugal partnership
shall pay for the support of the spouses and their children.

Process:
1. During pendency of the proceedings for separation of property, the absolute community or conjugal partnership
shall pay for the support of the spouses and their children.
2. Decree of separation of property.
3. Absolute community or conjugal partnership shall be liquidated in conformity with the Family Code.

Art. 138. After dissolution of the absolute community or of the conjugal partnership, the provisions on complete
separation of property shall apply.
Art. 139. The petition for separation of property and the final judgment granting the same shall be recorded in the
proper local civil registries and registries of property.

What shall be recorded in the local civil registries and registries of property?
1. Petition for separation of property
2. Final judgment granting the petition

Art. 140. The separation of property shall not prejudice the rights previously acquired by creditors.
Art. 141. The spouses may, in the same proceedings where separation of property was decreed, file a motion in court for
a decree reviving the property regime that existed between them before the separation of property in any of the
following instances:
(1) When the civil interdiction terminates;
(2) When the absentee spouse reappears;
(3) When the court, being satisfied that the spouse granted the power of administration in the marriage settlements will
not again abuse that power, authorizes the resumption of said administration;
(4) When the spouse who has left the conjugal home without a decree of legal separation resumes common life with the
other;
(5) When parental authority is judicially restored to the spouse previously deprived thereof;
(6) When the spouses who have separated in fact for at least one year, reconcile and resume common life; or
(7) When after voluntary dissolution of the absolute community of property or conjugal partnership has been judicially
decreed upon the joint petition of the spouses, they agree to the revival of the former property regime. No voluntary
separation of property may thereafter be granted.
The revival of the former property regime shall be governed by Article 67.

Revival of property regime before separation of property:

Filed in court in the same proceedings where separation of property was decreed.

-Reconciliation does not mean automatic revival of the former regime. It needs to be properly filed.
-Once the former regime is revived, there is no more voluntary separation of property that will be allowed/granted.
-In case of legal separation, there can still be a separation of property after the revival. But it is not anymore a voluntary
separation of property, rather a separation of property for sufficient cause.

Art. 142. The administration of all classes of exclusive property of either spouse may be transferred by the court to the
other spouse:
(1) When one spouse becomes the guardian of the other;
(2) When one spouse is judicially declared an absentee;
(3) When one spouse is sentenced to a penalty which carries with it civil interdiction; or
(4) When one spouse becomes a fugitive from justice or is in hiding as an accused in a criminal case.
If the other spouse is not qualified by reason of incompetence, conflict of interest, or any other just cause, the court shall
appoint a suitable person to be the administrator.

Art. 142 is not the same as Art. 110 (transfer of administration to the other spouse)

GJSF: Go Jumping, Swimming, or Fishing.

(1) When one spouse becomes the GUARDIAN of the other

-When the other spouse becomes physically or mentally incapable.
(2) When one spouse is JUDICIALLY declared an absentee
-Refers to absence under the Civil Code.
-Purpose: Administration of property of the absent spouse.
-Does not include acts of ownership.
(3) When one spouse is SENTENCED to a penalty with civil interdiction
(4) When one spouse becomes a FUGITIVE

Chapter 6: Regime of Separation of Property

Art. 143. Should the future spouses agree in the marriage settlements that their property relations during marriage shall
be governed by the regime of separation of property, the provisions of this Chapter shall be suppletory.

Complete Separation of Property

Primarily governed by: The stipulation of parties (it becomes a special contract)
Suppletorily governed by: Family Code

-Separation of property that is expressly agreed upon in the marriage settlement

-Spouses retain ownership, management, and control of their properties before and those acquired during the marriage.
-Spouses retain fruits & income of their separate properties.
-Spouses are responsible for their own liabilities.
-Spouses contribute to the family expenses proportionately to their income or value of their properties.

When can CSP exist?

1. By agreement of the parties in their marriage settlement
2. If decreed by the court in proper cases

-If marriage settlement is CSP, spouses cannot consent later on to ACP or CPG.
-If marriage settlement is ACP or CPG, it can be converted into CSP during the marriage, provided that there is judicial
approval.

Art. 144. Separation of property may refer to present or future property or both. It may be total or partial. In the latter
case, the property not agreed upon as separate shall pertain to the absolute community.

Kinds of separation of property

A. As to extent
1. Total
2. Partial
-Property that is not separate shall be absolute community, unless agreed otherwise.
-Note: This is different from Art. 67.
-Here, the spouses have to agree what their separate properties are. This is not found in Art. 67.

B. As to kinds of property
1. Present
2. Future
3. Both present and future
Art. 145. Each spouse shall own, dispose of, possess, administer and enjoy his or her own separate estate, without need
of the consent of the other. To each spouse shall belong all earnings from his or her profession, business or industry and
all fruits, natural, industrial or civil, due or received during the marriage from his or her separate property.

In Art. 145, there is no need for consent.

This is cited by the Supreme Court in the case of Caburnay: “Each spouse shall…”

Art. 146. Both spouses shall bear the family expenses in proportion to their income, or, in case of insufficiency or default
thereof, to the current market value of their separate properties.
The liabilities of the spouses to creditors for family expenses shall, however, be solidary.

Family expenses:
1. In proportion to their income
2. If income is insufficient, from the current market value of their separate properties
(if their contribution is insufficient, then they are solidarily liable)

Liabilities to creditors are solidary.

Chapter 7: Property Regime of Unions Without Marriage

Art. 147. When a man and a woman who are capacitated to marry each other, live exclusively with each other as
husband and wife without the benefit of marriage or under a void marriage, their wages and salaries shall be owned by
them in equal shares and the property acquired by both of them through their work or industry shall be governed by the
rules on co-ownership.
In the absence of proof to the contrary, properties acquired while they lived together shall be presumed to have been
obtained by their joint efforts, work or industry, and shall be owned by them in equal shares. For purposes of this Article,
a party who did not participate in the acquisition by the other party of any property shall be deemed to have contributed
jointly in the acquisition thereof if the former’s efforts consisted in the care and maintenance of the family and of the
household.
Neither party can encumber or dispose by acts inter vivos of his or her share in the property acquired during
cohabitation and owned in common, without the consent of the other, until after the termination of their cohabitation.
When only one of the parties to a void marriage is in good faith, the share of the party in bad faith in the co-ownership
shall be forfeited in favor of their common children. In case of default of or waiver by any or all of the common children
or their descendants, each vacant share shall belong to the respective surviving descendants. In the absence of
descendants, such share shall belong to the innocent party. In all cases, the forfeiture shall take place upon termination
of the cohabitation.

LIVING EXCLUSIVELY

Requisites for Art. 147:

1. Both are capacitated to marry each other.
2. There is no marriage, or the marriage is void.

Rules:
 Wages and salaries earned during cohabitation shall be owned by the parties in equal shares.
Presumption: Effort, work, and industry is joint, and therefore shares are equal.
 Properties acquired while living together shall be governed by the Rules on Co-ownership.
Presumption: Party who did not join in the acquisition is deemed to have contributed jointly, consisting of care
and maintenance of the family and household.

-Refers to property relations of parties who live together without the benefit of marriage.
-Forfeiture here applies to void marriages and one of the parties is in bad faith.
-Forfeiture here is different from Art. 43 (2) (refers only to share in net profit).
-Here, forfeited is the entire share of the guilty party/ party in bad faith.
-Here, forfeiture should be in favor of common children. In their absence or in case of a waiver by the common children,
then of surviving descendants. In the absence of surviving descendants, then of the innocent party.

Art. 148. In cases of cohabitation not falling under the preceding Article, only the properties acquired by both of the
parties through their actual joint contribution of money, property, or industry shall be owned by them in common in
proportion to their respective contributions. In the absence of proof to the contrary, their contributions and
corresponding shares are presumed to be equal. The same rule and presumption shall apply to joint deposits of money
and evidences of credit.
If one of the parties is validly married to another, his or her share in the co-ownership shall accrue to the absolute
community or conjugal partnership existing in such valid marriage. If the party who acted in bad faith is not validly
married to another, his or her shall be forfeited in the manner provided in the last paragraph of the preceding Article.
The foregoing rules on forfeiture shall likewise apply even if both parties are in bad faith.

Art. 148 applies to:

1. Bigamous marriages
2. Adulterous relationships
3. Relationships in concubinage
4. Relationships where both parties are married to other persons
5. Multiple alliances of the same married man.

-Only properties acquired by both parties through their actual joint contribution of money, property, or industry shall be
owned by them in common, in proportion to their respective contributions.
-In the absence of proof to the contrary, the contributions and corresponding shares are presumed to be equal.
-The same rule applies to joint deposits of money & evidences of credit.

 If one party is validly married to another – his/her share in the co-ownership shall accrue to the ACP or CPG in
such marriage.
 If one party acted in bad faith – his/her share in the co-ownership shall be forfeited in the same manner as in
the last paragraph of Art. 147.

-Refers to properties acquired during the cohabitation or void marriage.

-Cases: Valdez, Buenaventura
-Presumption of equal sharing shall only apply in the absence of proof
-In short: If there is no proof, then there is no contribution
-Prohibited: acts inter vivos, not mortis causa.

-Refers to concubinage, adultery, or parties living together but not exclusively.

-Art. 138 vs. Art. 137: Here, to be entitled to share, there must be actual proof of money, property, or industry (industry
is most difficult to prove).

Applicability of Arts. 147 and 148

Void marriages under Art. 35:

(1) Absence of capacity – Art. 148
(2) Absence of authority of solemnizing officer – Art. 147
(3) Absence of marriage license – Art. 147
(4) Polygamous/ bigamous marriage – Art. 148
(5) Mistake in identity – Art. 147
(6) Subsequent marriage null under Art. 53 – Art. 147
RA 11596, Section 6 – Arts. 50-54 of the Family Code
Absolute community or conjugal partnership, depending when the marriage was celebrated.

Art. 36 (psychological incapacity) – Art. 147

Art. 37 (incestuous) – Art. 148
Art. 38 (void by reason of public policy) – Art. 148
Art. 40
1. Marriage is void under Art. 35 – Art. 147/Art. 148
2. Marriage is void due to absence of the declaration of nullity of the first void marriage – absolute or conjugal?
Art. 44 (both spouses in bad faith) – Art. 148

TITLE V: THE FAMILY

CHAPTER 1: THE FAMILY AS AN INSTITUTION
Art. 149. The family, being the foundation of the nation, is a basic social institution which public policy cherishes and
protects. Consequently, family relations are governed by law and no custom, practice or agreement destructive of the
family shall be recognized or given effect.

2 aspects in family relations:

1. Internal- sacred to the family and inaccessible to the law
2. External- the law governs only this

Law governing the family has 2 essential characteristics:

1. Increasing intervention of the State in the consideration and solution of the problems affecting the family
2. The obligatory character of laws relating to family, because they affect public order or public policy

Art. 150. Family relations include those:

(1) Between husband and wife;
(2) Between parents and children;
(3) Among other ascendants and descendants;
(4) Among brothers and sisters, whether of the full or half-blood.

MEMORIZE: What do family relations include

-This is essential in determining the applicability of the sale.
-(1) Husband and wife must be legally married.
-(2), (3), and (4) May be legitimate or illegitimate
(4) Does not include brothers-in-law and sisters-in-law
-Those not found in this list are deemed excluded from the enumeration.

Art. 151. No suit between members of the same family shall prosper unless it should appear from the verified complaint
or petition that earnest efforts toward a compromise have been made, but that the same have failed. If it is shown that
no such efforts were in fact made, the same case must be dismissed.
This rule shall not apply to cases which may not be the subject of compromise under the Civil Code.

-Limited to suits between family members enumerated in Art. 150

-Impediment arises only when the suit is for a ground which can be the subject of a VALID COMPROMISE.

The following cannot be the subject of a valid compromise under the Civil Code (exceptions to Art. 151):
1. Civil status of persons
-Cannot decide for yourself
2. Validity of a marriage or a legal separation
3. Any ground for legal separation
4. Future support
-The right of the party has yet to be fulfilled
5. Future legitime
-Merely inchoate or expectancy
6. The jurisdiction of courts
-Read: Gaw Chin Ty vs. Chua

Other exceptions:
1. Man and woman living together (not legally married)
2. If a 3rd person is involved in a suit (Hiyas Savings Bank)
3. Brother-in-law and sister-in-law (in-laws are strangers)
4. Collateral relatives that are not brother & sister (ex. nephew)
5. Special proceedings (ex. settlement of estate of the deceased)
-“Suit” refers only to civil cases

Before Romero vs. Singson:

-Compromise is mandatory.
-Failure of compromise would warrant the outright dismissal of the petition.

In subsequent cases:
-Court changed its interpretation.
-Court: Non-compliance with Art. 151 does not mean the automatic dismissal of the petition.
-It is incumbent upon the defendant to raise non-compliance either in the motion to dismiss, or in the answer.
-Further, if the defendant dopes not raise such, then he is deemed to have waived the requirement, and the court may
now proceed with the trial.

CHAPTER 2: THE FAMILY HOME

Art. 152. The family home, constituted jointly by the husband and the wife or by an unmarried head of a family, is the
dwelling house where they and their family reside, and the land on which it is situated.

“Jointly”
-By the husband and wife
-By the unmarried head of the family*
-Both the house and the land where the house is situated

*When does the child become head of the family?

-If both parents are already retired/ have died
-In our culture: it is the eldest of children

Taneo Jr. vs. CA

-Need to judicially or extra-judicially constitute it
-OR have it registered with the civil registry to affect third persons
-Here, it is too late. It was constituted when obligations were already divided by the court.

Modequillo vs. Breva

-Application of Art. 162
-Davao City case
-Lawyer: Provisions on family home apply retroactively to those before the effectivity of the Family Code
-Nothing in the law provides for its retroactivity
-Court: It is not excempt

-Entire house must be devoted as a family residence

-Not when there is a hardware or other store below
-Reason: When one enters into business, the owner would incur obligations. Houses/ land/ buildings may be used as
security for the loan obtained. It defeats the purpose under the Family Code.
-Also does not apply when the home is engaged in the business of renting to tenants. It ceases to be a family home.
-For condominiums, in the case of Cordova vs. Ty, the Court has no specific pronouncement on this. There was no
elaboration, it said that there must be proof that the condominium unit is a family home.

Art. 153. The family home is deemed constituted on a house and lot from the time it is occupied as a family residence.
From the time of its constitution and so long as any of its beneficiaries actually resides therein, the family home
continues to be such and is exempt from execution, forced sale or attachment except as hereinafter provided and to the
extent of the value allowed by law.
Art. 154. The beneficiaries of a family home are:
(1) The husband and wife, or an unmarried person who is the head of a family; and
(2) Their parents, ascendants, descendants, brothers and sisters, whether the relationship be legitimate or illegitimate,
who are living in the family home and who depend upon the head of the family for legal support.

3 requisites to consider as beneficiaries of family home:

1. Actually residing
2. Must be among Art. 154 (1) or (2)
3. Must be dependent among Art. 154 (1) for support

Absence of the third requirement means the Family Home may now be subject to partition.

Note (bar question): They must be actually dependent on Art. 154 (1) for legal support.

Patricio vs. Dario III

-Child is not dependent on the family head, but upon his father.
-It is not compliant to the third requisite.

How to determine family home:

a. Husband and wife living with nephews
 -Nephews are not beneficiaries of the family home.
-Nephews are still dependent on their parents.
b. Children studying in Manila
-Still a family home because the children keep coming back.
-There is always the intention of returning.
c. If you have so many houses
-The family home is the one where you always have the intention of returning to.
-Where you always go home to.
-There can only be one family home as per the law.
d. All members of family are not anymore residing (caretaker only)
-Not anymore a family home.
-Now subject to execution.

Remember:
-Art. 154 (2) must be dependent under (1) for support and must be actually residing in the family home.
-If not dependent for support, they would not qualify as beneficiaries.

“Actually residing”
-Not 100% physically residing (ex. children going to school in Manila)
-The determination is: There is intention of returning on the part of the beneficiaries, especially the children.

Art. 155. The family home shall be exempt from execution, forced sale or attachment except:
(1) For nonpayment of taxes;
(2) For debts incurred prior to the constitution of the family home;
(3) For debts secured by mortgages on the premises before or after such constitution; and
(4) For debts due to laborers, mechanics, architects, builders, materialmen and others who have rendered service or
furnished material for the construction of the building.

-This refers to exceptions to the exemption of the family home from execution, forced sale, or attachment.

Modequillo vs. Breva

-Judgment granted by the court became final and executory, cannot be disturbed anymore
-Lawyer: Provisions of Art. 162 should be read with Art. 456 (retroactive application)
-Court: Art. 162 does not intend to give it retroactive application.
-All existing family residences established before the effectivity of the Family Code become a Family Home (prospective
application)
-There is no more need to have it judicially or extra-judicially constituted, thus it is entitled to benefits.

Art. 156. The family home must be part of the properties of the absolute community or the conjugal partnership, or of
the exclusive properties of either spouse with the latter's consent. It may also be constituted by an unmarried head of a
family on his or her own property.
Nevertheless, property that is the subject of a conditional sale on installments where ownership is reserved by the
vendor only to guarantee payment of the purchase price may be constituted as a family home.

First paragraph:
-Family home may be constituted of the exclusive property of either husband or wife with consent, of the absolute
community or the conjugal partnership, or the unmarried head of the family (must not be co-owned with a stranger).
-Reason: Interest of stranger is different from the interest of the unmarried head of the family.

Second paragraph:
-Subject to Art. 155 (3)
-Contract to sell is what is covered by Art. 156
-Ownership is by the vendor.
-Failure to pay gives the creditor a right to have the property subject to forced sale.

Cabang vs. Basay

-Court: The family home encroached on the property of another person. It is not exempt.
-The issue on ownership has already been decided.

Art. 157. The actual value of the family home shall not exceed, at the time of its constitution, the amount of the three
hundred thousand pesos in urban areas, and two hundred thousand pesos in rural areas, or such amounts as may
hereafter be fixed by law.
In any event, if the value of the currency changes after the adoption of this Code, the value most favorable for the
constitution of a family home shall be the basis of evaluation.
For purposes of this Article, urban areas are deemed to include chartered cities and municipalities whose annual income
at least equals that legally required for chartered cities. All others are deemed to be rural areas.

First paragraph:
-Depending where the Family Home is constituted

Second paragraph:
-There should be a law passed by Congress involving this
-The purpose of the Supreme Court is merely to interpret
-2nd paragraph is subject to several interpretations

“Urban areas”
-chartered cities
-municipalities with income equal to chartered cities

All others are “rural areas”.

Art. 158. The family home may be sold, alienated, donated, assigned or encumbered by the owner or owners thereof
with the written consent of the person constituting the same, the latter's spouse, and a majority of the beneficiaries of
legal age. In case of conflict, the court shall decide.

Eulogio vs. Bell

-Without consent of beneficiaries of legal age
-Court: null and void
-Unable to pay P1M
-Creditor wanted the family home to be the subject of levy on execution
-Creditor claimed that it is no longer exempt in relation to Art. 160 (Value of the family home exceeded value in Art. 157)
-Proof: Deed of sale earlier decreed by court as null and void
-Court: Cannot use as basis, because it is null and void. It is as if it never existed.
-Obligation of debtors become merely unsecured debt (ordinary obligation)
-Court: Conditions for creditor to successfully attach/levy the family home:
1. There was an increase in its actual value
2. The increase resulted from voluntary improvement
3. The increased actual value exceed the statutory limit under Art. 157

“Involuntary improvement”
-Ex. There was an increase in the value of the family home because the city government did improvements (widened the
road, put street lights)
-It cannot be the subject of execution, forced sale, or attachment
Art. 159. The family home shall continue despite the death of one or both spouses or of the unmarried head of the
family for a period of ten years or for as long as there is a minor beneficiary, and the heirs cannot partition the same
unless the court finds compelling reasons therefor. This rule shall apply regardless of whoever owns the property or
constituted the family home.
Art. 160. When a creditor whose claims is not among those mentioned in Article 155 obtains a judgment in his favor, and
he has reasonable grounds to believe that the family home is actually worth more than the maximum amount fixed in
Article 157, he may apply to the court which rendered the judgment for an order directing the sale of the property under
execution. The court shall so order if it finds that the actual value of the family home exceeds the maximum amount
allowed by law as of the time of its constitution. If the increased actual value exceeds the maximum allowed in Article
157 and results from subsequent voluntary improvements introduced by the person or persons constituting the family
home, by the owner or owners of the property, or by any of the beneficiaries, the same rule and procedure shall apply.
At the execution sale, no bid below the value allowed for a family home shall be considered. The proceeds shall be
applied first to the amount mentioned in Article 157, and then to the liabilities under the judgment and the costs. The
excess, if any, shall be delivered to the judgment debtor.
Art. 161. For purposes of availing of the benefits of a family home as provided for in this Chapter, a person may
constitute, or be the beneficiary of, only one family home.
Art. 162. The provisions in this Chapter shall also govern existing family residences insofar as said provisions are
applicable.

Modequillo vs. Breva

-Cannot be given retroactive application

De Mesa vs. Acero Jr.

-Already became lessees of property
-Did not pay rents due so they were ejected
-Then waited for the sheriff to invoke that it is a family home

Cordova vs. Ty
-No proof

Salazar vs. Felias

-No proof presented that it is a family home
-Burden is on the party invoking that it is a family home
-Liability not of conjugal property because it did not redound to the benefit of the property

Hidalgo vs. Bacuguin

-No award for damages
-“Legal increments”