Property Relations between the spouses

What law governs unstipulated property relations between spouses? What are the exceptions?

PH Law, except it

1) If both are aliens

2) The extrinisc validity of contracts vis a vis property not in the Philippines and executed in the country where the property is located

3) The extrinsic validity of contracts entered into in the PH but about property in a foreign country, whose laws require different formalities for its extrinsic validity

What happens to these contracts and settlements made by reason of the marriage?

• They are rendered void if the mariage does not take place.

• If they don’t depend on the marriage, they’ll be valid.,

What are the requirements of a donation by reason of marriage?

1) Made before its celebration

2) In consideration of the marriage’s celebration

3) In favor of one or both of the spouses?

What is Art 84

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. (130a)

How much can one spouse donate to the other if they have a different regime other than ACP?

Not more than 1/5th

What are donations of future property governed by?

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. (130a)

What is article 85?

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. (131a)

What is an encumbrance?

An encumbrance in law is a claim, liability, or right against a property held by someone who is not the owner. It limits, restricts, or attaches a financial burden to the asset—such as a mortgage, lien, or easement—which stays with the property even if ownership changes hands. [1, 2, 3]

If a donation by reason of marriage (Say a house) has an encumbrenace upon it (Say, a mortgage), what happens if this causes the property to be sold?

• These are valid

• If it has to be sold, the donee (the receiver) isn’t liable for the deficiency.

• If it is sold for more than the total amount of the obligation, the donee shall be entitled to the excess

Enumerate the reasons why a donor may revoke a donation for reason of marriage?

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. (132a)

C-C-A-L-R-I

Circumstances where a marriage is terminated — Resolutory condition (So, if the condition terminates the contract) — When the donee is a horrible person

What is Art 87?

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. (133a)

Can two spouses donate or grant to each other? Except moderate gifts

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. (133a)

Can a system of absolute community be subject to stipulation?

No.

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. (145a)

What does 89 say?

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. (146a)

What does 89 say in brief?

Basically, you can’t waive away your right to your share of the ACP, unless there is some judicial separation of property.

If there is a waiver, please record it in a public instrument. Any creditor can file a petition to rescind the waiver to the amount necessary to pay them back.

What provisions apply to the ACP if not provided in this chapter?

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. (n)

In Re Ravilo

Facts:

Javillo died intestate. Santiago Andrada was named administrator.

Javillo contracted two marriages — the first with Ramon Levis (whose children are the appellees)

After the first marriage ended, Crispulo married Rosario Onas, and they had 4 children.

Issue:

• Did the lower court err in holding that all properties during the second marriage came as a result of the properties made in the first?

• Did the Lower court err in approving a second partition, it not including all the properties of the deceased, Crispulo Javillo
  
  

Ruling

• Yes, because it’s obvious he made his own effort. Spanish jurists have always believed that upon time of death it dissolves, although some believe it continues.

  • Basically, the community of property terminates upon the marriage’s dissolution, because the purpose of it was to support the spouses anyway

• The project of partition is based on the absurdity that the second marriage relied on the gains from the first. Thus it is unjust

  • THUS, we hold that ½ of all the property from both marriages corresponds to Crispulo Javillo, and must be shared among all children.

  • Remaining ½ from the first marriage goes to the first wife

  • ½ from the second marriage goes to the widow.

What constitutes part of the properties in an absolute community of 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. (197a)

What is excluded from an absolute community of property?

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;

• Meaning anything without payment, such as from inheritance or donation

(2) Property for personal and exclusive use of either spouse. However, jewelry shall form part of the community property;

• As an example, my clothes. Which is interesting because some of them are collectors items.

(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. (201a)

• Basically, you can’t include the stuff from a previous marriage in your current absolute community of property if you have children.

What is the absolute community of property responsible for?

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.

What pays for stuff if the absolute community of property is insufficient?

Also under Art 94

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. (161a, 162a, 163a, 202a-205a)

Does the Conjugal property pay for stuff related to gambling?

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. (164a)

Does administration and enjoyment of the community property belong to both spouses?

Yes —

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

What happens if there’s disagreement on the administration 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.

Who can take over the administration of the common properties?

Art 96 (2) — 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. (206a)

Can either spouse dispose of their respective half of the community property?

Yes

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

To be specific, this refers to stuff like disposing it through a will — subject to legitimes

Can either spouse donate from the community property without consent from the other?

NO but there are exceptions.

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. (n)

When can an absolute community of property terminate?

(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. (175a)

How does seperation in fact affect property relations between spouses?

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. (178a)

What can a spouse do if the other abandons the family or fails to comply with familial obligations

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. (178a)

• Petition the court for receivership

• Ask for judicial separation of property OR

• Ask to be the sole administrator of the absolute community

Just narrate what happens upon the dissolution of the absolute community of property

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. (n)

What occurs when there is a termination of marriage by death?

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 said 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 complying with the foregoing requirements, a mandatory regime of complete separation of property shall govern the property relations of the subsequent marriage. (n)

What happens when there is a liquidation of the community of property of two marriages contracted by the same person, before the effectivity of the Family Code.

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. (189a)