AttyJimenoPIFAAP Holds Special Interest Session on Family Law
By: Atty. Rita Linda Jimeno

As provided for in E.O. No. 209, also known as the Family Code of the Philippines, spouses have different property relations. There is the absolute community of property (ACP) and the conjugal partnership of gains (CPG)
Well-known jurist, educator and bar examiner, Atty. Rita Linda V. Jimeno discussed these property relations between spouses in a special interest session conducted by the Professional Insurance and Financial Advisors Association of the Philippines (PIFAAP) last July 31, 2014 at the IIAP Main Lecture Hall.

Absolute Community of Property

Expounding on the default property relation, Atty. Jimeno said the ACP is more in line with the concept of unity between husband and wife under the Family Code. When the Family Code became effective on August 3, 1988, every marriage validly celebrated under the law should follow the ACP where there was no property relation expressly stipulated by the spouses,.
Under ACP, the husband and wife shall share all of the properties that they own at the time of the celebration of the marriage and those that they acquire thereafter. However, this has exception. Properties acquired through gratuitous title by either spouse are not part of the absolute property. This means that anything that is donated to either spouse, or any property (both real and personal) that they inherited from their parents, ascendants or third persons, is not be included in the community property. Same goes with personal property which is for the exclusive use of either spouse. However, any jewelry belonging to either spouse shall form part of the community property.

If ever any of the spouses was previously married and such former marriage has produced legitimate descendants (children and/or grandchildren), the properties acquired during the former marriage shall be excluded from the community property of the subsequent marriage.

Obligations under ACP

There are also different charges and obligations that spouses have to each other under ACP, according to Atty. Jimeno. Firstly, the spouses are obliged to support each other and their common children. The funds to be used would be drawn from the community property. However, should any of the spouses have illegitimate children, the support for such offspring will be handled solely by the spouse who bore them out of his personal funds.

The spouses are to jointly administer and enjoy the community property. They are also obligated to handle any debts and obligations that they may have contracted, as long as the family is benefitted. This includes the payments of taxes, liens and expenses.

Here, Jimeno provided a caveat to the audience. Should any of the spouse proves to be an irresponsible gambler — the losses suffered from any game of chance shall be suffered solely by the spouse who engaged in such activity. However, when there are winnings, such winnings should be submitted to the community property.

Conjugal Partnership of Gains

Under the Family Code, the law does not assume conjugal partnership of gains (CPG) to exist between the spouses. This must be expressly agreed upon by the spouses and stipulated in their marriage contract.

If the spouses follow CPG, they will put all incomes produced by their separate properties in a common fund. The spouses remain as the exclusive owners and administrators of the properties that they have before the celebration of the marriage. To be also included in this common fund are properties acquired by either or both spouses through their efforts or by chance.

The properties excluded from this common fund are the following: (a) those brought to the marriage as his or her own separate property; (b) those acquired during the marriage through gratuitous title; (c) those acquired through barter or exchange using property belonging to only one of the spouses; and (d) those purchased with the exclusive money of the wife or of the husband.

If ever the relationship turns sour and the marriage is dissolved under the law, the net gains or benefits obtained by either or both spouses shall be divided equally between them unless otherwise agreed in marriage settlements. This means, the spouses are free to agree and stipulate that should the CPG is dissolved, one of them could get more or less from the net gains of their properties.

The charges and obligations that spouses have to each other are the same with that under ACP.

As to the administration of the properties, the spouses retain sole administration of their respective properties. However, either spouse may, during the course of the marriage, transfer the administration of his or her exclusive property to the other by means of a public instrument which shall be recoded at the registry of property where the property is located.

Property Dissolution

ACP and CPG share common reasons for dissolution. Under the law, such property regimes can be dissolved through the following:

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 of the Family Code. Under these respective articles, the spouses are expressly revoking the previous property regime that they have.

Separation of Property

The spouses are also free to maintain a regime of separation of property under the Family Code. Here, the property of each spouse shall be enjoyed and administered by the spouse who owns such a property. Under this regime, the spouses do not need each other’s consent when it comes to the handling of their own separate property. Furthermore, to each spouse shall belong all earnings from his or her profession, business or industry and all income received during the marriage from his or her separate property.
Both spouses shall bear the family expenses in proportion to their income. The liability of the spouses to creditors for family expenses shall however be solidary. This means that family creditors can choose to go after only one of the spouses, usually the one who earns more, in order for them to be paid anent any expenses used for the benefit of the family.

Unions Without Marriage

A fourth property regime exists under the Family Code: unions without marriage. This is the regime that should be ideally followed by individuals who chose to live under one roof and engage in marital relationships.

The law qualifies that this is only possible for a man and a woman who are able to marry each other and live exclusively as husband and wife without the benefit of a marriage or under a void marriage. Here, the wages and salaries shall be owned by them in equal shares and the property acquired by both of them through their work shall be governed by the rules of co-ownership.
In matters of administration of the properties, neither of the parties can dispose the property nor encumber the same without the consent of the other.

* * *
The Professional Insurance & Financial Advisors Association of the Philippines (PIFAAP), a non-stock, non-profit organization, is an exclusive network of professionals engaged in the sale and marketing of life, non-life and pre-need products, bancassurance, and mututal funds. PIFAAP is recognized and accredited by the Million Dollar Round Table to certify for member applicants to MDRT. For more information, you can visit www.pifaap.org.