Conjugal Partnership of Gains: Property Relations in Marriage

We previously noted that we are breaking down the discussion on the property relations of the spouses during marriage, as follows: (1) Prenuptial agreements and introduction to property relations between husband and wife; (2) The system of absolute community; (3) Conjugal partnership of gains; (4) Complete separation of property; (5) Donations by reason of marriage; and (6) Comparison of the various types of property relations between spouses. This post is Part 3.

What is the conjugal partnership of gains?

Oftentimes referred to as the CPG, it is one of the property relations between the spouses, under which 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. In other words, the following are placed in a common fund:

1. the proceeds, products, fruits and income from their separate properties; and
2. those acquired by either or both spouses through their efforts or by chance.

In what instances shall the regime of CPG apply?

It applies only when the future spouses agree to it in the marriage settlement, if any. It also applies to conjugal partnerships of gains already established between spouses before the effectivity of the Family Code, without prejudice to vested rights. This is the default property relationship under the Civil Code, which was changed to that of absolute community of property under the Family Code.

When does the CPG begin?

It begins at the precise moment when the marriage is celebrated, exactly like in absolute community of property.

Can a spouse waive his/her share in the community property during marriage?

No. Except in case of judicial separation of property, any waiver of rights, shares and effects of the absolute community of property during the marriage can be made.

Are the rules on ordinary partnership applicable to the conjugal partnership of gains?

As a rule, yes, but only if not in what is expressly provided in the pertinent provisions of the Family Code or by the spouses in their marriage settlements.

What are 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 (through pure liberality, as in donation and testate/intestate succession);

(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.

What is the significance of having an exclusive property?

The spouses retain the ownership, possession, administration and enjoyment of their exclusive properties. A spouse may also 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.

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. However, 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.

What properties belong to the conjugal partnership?

(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.

What is the presumption regarding properties acquired during marriage?

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.

What is the rule in case of purchase by installment?

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.

What is the rule in case a spouse has a credit payable to him over time?

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.

What is the rule if improvements are made on that exclusive property using conjugal funds or through the acts or efforts of either or both spouses?

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:

1. 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.

2. When the cost of the improvement made by the conjugal partnership and any resulting increase in value are LESS than the value of the property at the time of the improvement, the entire property shall remain with the owner-spouse.

3. In either case, the owner-spouse or the conjugal partnership, as the case may be, is entitled to reimbursement for the value of the principal property or the improvement, as the case may be.

4. It doesn’t matter if the improvements are for utility or adornment.

What are the charges upon and obligations of the conjugal partnership?

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 the Family 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.

What are the rules concerning personal debts contracted before or during the marriage?

1. As a rule, the payment of personal debts contracted by the husband or the wife before or during the marriage shall not be charged to the conjugal partnership properties.

2. However, these debts shall be charged to the conjugal partnership properties insofar as they redounded to the benefit of the family.

3. If the spouse has no exclusive property, it may be charged to the conjugal partnership, subject to the provisions below.

What are the rules concerning fines and pecuniary indemnities imposed on each spouse?

These cannot 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 charges/obligations enumerated in above 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.

What is the rule in case of winnings or losses in gambling?

Any loss incurred by a spouse 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 that spouse, and shall not be charged to the conjugal partnership. Any winnings, on the other hand, shall form part of the conjugal partnership property.

Who has the authority to administer the conjugal partnership property?

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.

Can either spouse make donations of conjugal partnership property?

As a rule, 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.

When does the conjugal partnership 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.

Does the separation in fact or de facto separation between the spouses affect the conjugal partnership?

No. However, the following are the effects:

(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.

What is the rule if a spouse abandons the other?

If a spouse without just cause abandons the other or fails to comply with his or her obligation to the family (referring to marital, parental or property relations), 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.

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.

What is the applicable procedure in the event of 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.

(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 Family Code.

(8) The presumptive legitimes of the common children shall be delivered upon partition.

(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.

If a spouse dies, how is the conjugal partnership liquidated?

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.

What happens if the foregoing procedure in the immediately preceding paragraph is not carried out?

If the procedure on liquidation, as outlined above, is not followed: (a) any disposition or encumbrance involving conjugal partnership property by the surviving spouse shall be void; and (b) any subsequent marriage shall be governed by the mandatory regime of complete separation of property.

How is support charged during the liquidation?

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.

23 Responses to “Conjugal Partnership of Gains: Property Relations in Marriage”


Pages: « 2 [1] Show All

  1. 15 anne223 Oct 14th, 2010 at 9:00 am

    Dear Atty.:
    I just want to seek advise before taking any action.

    I am a former OFW and sent money to my parents in the province. While I was working abroad I met someone and we live together as partner (not married)and we got 2 kids. Without telling me, my parents bought a property (farm) and they put under my name and partner. Now my problem is, we are now separated and my partner demand for his share. Does she have the right, since we are not married and my parents was the one who bought that property and they are the signatory of the land title?

    Please, i hope i can hear from you. Cause this person threaten my parents. Thank you very much..

  2. 14 andready May 24th, 2010 at 4:17 pm

    Dear Atty,

    My husband leaves us for about seven months. We are not legally separated. He uses our car, a conjugal property, fetching his girl from somewhere and even using it going out for a date. How can I get my share and my right on this conjugal property?

    Thank you very much!

  3. 13 anjeztrid Apr 10th, 2010 at 5:13 pm

    Dear Atty Fred

    My anullment has been done a month ago.I still have to go back to court for the hearing on the custody and support .
    I am confused regarding our house. I just want to know if he can get a share of our house the fact that me and my daughter lives in our house and he left the said house for almost 7 years now.It is known here in our place that he is having an affair with a married woman.
    Another thing is he refused to give financial support to our daughter
    which is injustice on my daughters part
    Is there anything i can do to force him give the support?
    If i will force him to support our daughter can he also force to ask a share of our house?
    Pls email me rightaway at anjeztrid@live.com
    I need it urgently
    Thnak

  4. 12 lindz Mar 9th, 2010 at 3:24 am

    dear atty,

    i just want to ask for advice my mother died last December 2007 and she’s the breadwinner in our family..When she died my father want’s to sell our farm which is my mother bought it.. it’s just that or it seems that its part of conjugal property i think.. When he want to sell it me and my brothers want’s to ask for our share because i have two of my brother still in college i want them to finish their studies that’s why i ask for our share.. But my father said that if he give us our share it would be 50% for him and the other 50% would divided for the four of us siblings is it right? And now other problem occurred my father have other woman and the woman is pregnant so is their any changes of the conjugal property or the sharing of the price of the farm? Is it favor for me and my 3 brothers? Please help me…

    Thank you
    Lindz

  5. 11 mjplondon Oct 23rd, 2009 at 11:38 am

    Hi Atty. Fred and Company.
    I have a somewhat related question.
    My friend, ex-Filipino citizen, acquired Canadian citizenship and renouced Philippine Citizenship. He married, and is now seeking to divorce.

    While he was a Canadian citizen (Phil citizenship already renounced), he inherited property in the Philippines with his siblings from his Dad. The TCT of the property now bears his siblings names AND his name. However, there seems to be complications with the way his name was mentioned in the TCT — that is, if his name was Juan de la Cruz, Jr and his wife (ex Phil, Canadian citizen, renounced), was Maria de la Cruz, the TCT says ” [...siblings...], AND Juan de la Cruz, Jr, married to Maria de la Cruz, AND [...siblings].”

    Canadian laws says that inherited properties are exempt from net family property computation.

    However, what does that entry in the Philippine TCT legally mean? Does the fact that Maria’s name is mentioned in the ….married to Maria de la Cruz… does that mean that she has claim to that TCT? Or is it only a documentary requirement that her name be there but it doesn’t confer her with ownership?

    Once the divorce goes through, should Juan seek to remedy the TCT to ensure that no claims are made?

    Many thanks Atty. Fred & Company.
    Kudos!

  6. 10 Kcatral Sep 29th, 2009 at 8:42 am

    Sir I need to ask something important regarding conjugal property this is because my dad is selling loaning our land and any properties without the consent of my mother who is working in Hong Kong sorry if i have to express this in tagalog sinasabi niya na wala raw kaming pakialam kung ibenta niya or sanla niya lahat nung lupa kasi mana raw niya ito sa tatay niya saan ba pumapasok ang pre-nuptial agreement hindi ba automatic conjugal property ang isang bagay once they entered marriage. I’m only asking this because we filled a case on concubinage sa father ko kasi binebenta niya yung lupa niya without consent ni mama ko tapos yung pinagbebentahan ay napunpunta sa babae niya hindi sa amin na mga anak niya

  7. 9 lawstud Sep 2nd, 2009 at 3:29 pm

    Hi atty, if I may ask about this..
    Can you make a single distinction for eah of the following areas between the regime of complete separation of property and absolute community property:

    a)as to when instituted
    b)as to how instituted
    C)as to coverage
    d)as to administration
    e)as to liability and/or sharing in the family expenses
    f)as to disposition of property
    g)as to dissolution of property regime

    id b glad if u can help.=)

  8. 8 grand-daugther Feb 16th, 2009 at 10:31 pm

    Here’s our problem. My grandmother married to an old single man and they dont have children but on the previous married of my grandmother she has 3 children and one of her siblings is my mother.
    When they lived together my grandmother and our step-grandfather bought a land and they build a house and a store. A few years later my grandmother pass-away from then on; my mother enhireted the store and her stepfather enhireted the house as his part of the property after several years, My mother moved into different place and she assume the store for over 5 years.

    After the death of her step-father, the brother’s and relatives of her step-father claiming not only the house but also the store that my mother enhireted from her mother. They said that the store was own by thier brother and my mother has no right on it.So they filled a case against my mother to the Brgy. Captain but sad to say they dont make it because it was known for everybody that my mother has the right since, it was a conjugal property between her mother and her stepfather and that she enhireted the store but the problem is after we redeem back the store and started to build a fence around the store, the brother of the stepfather of my mother file a case againts my mother claiming that they own it and they have title of the land which the name of my mother’s step-father is in the land title. Now this give us a big problem because it seems that they want to say that my mother has no right.

    I was so desperate to know and seek an advice on what should we do. This people are so greedy that even for the fact that it was clearly stated that my mother has the right to own the store that she enhireted from her mother. It was only a small piece of store but they claiming that my mother has no right.

    Is my mother has really no right for this?
    What should be do, when the store that my mother’s repair was being destroyed by her stepfather brother? Please help us..

    Grand-daugther

  9. 7 jhudes08 Dec 3rd, 2008 at 9:56 am

    Me and my husband bought a condominium unit 7 months after we got married. During our purchase I’m still using my maiden name because I haven’t change my name in my passport. If I change my name to married name in my passport, SSS ID and other documents, am I still a legal owner of the condo unit that we bought which is under my maiden name?

  10. 6 Zimo Oct 23rd, 2008 at 6:57 am

    My stepmother opined that the liquidation of assets of the terminated marriage only applies if the surviving spouse had outstanding loan. Her opinion about article 130 of the New Family Code states that because my Father had no loans or the Conjugal partnership with my mother did not incur a loan,the liquidation of the conjugal property is not mandatory. Is she correct?

  11. 5 dianne Jul 31st, 2008 at 4:00 pm

    I would just like to ask how the net profit is computed in the CPG? In ACP, as I understand it, the growth of the properties which the spouses brought into the marriage constitutes the net profit. In CPG, is there a separate CPG capital distinct from the separate properties of each of the spouse whose growth will be considered the net profit? this i ask with regard to forfeiture of the ‘net profit’ of the ACP/CPG when one of the spouses is at fault or acted in bad faith during the marriage.

    Thank you very much.

  12. 4 Andy Apr 7th, 2008 at 6:45 am

    To whom it may concern,

    I would like to ask for your advise regarding my case:

    Me and my wife decided to part our ways.I have properties(houses and cars) that are named after me, and was bought when I was still single(bought by my parents as gifts to me). After we were married, the property titles were not change, nor its property owner stated in it. I would like to ask, when me and my wife would file for an annulment, will she get part of my properties that are still named after me?

    Thank you and God bless.

  13. 3 serbo Dec 22nd, 2007 at 1:15 pm

    I am married to a british.He buy a house with lot and a one car..It was a gift for me now he wants the half coz we decided to get our own ways.
    Now my problem in That deeds of sale is it only my name and it says its single but still he have the reciept for the banking when he was paying the house and cars..
    Is he have a fight if i said no to him (for having devided the property)?
    Coz i dont want to sale it..
    Please give some advise..thanks

  14. 2 Atty. Fred Nov 26th, 2007 at 6:45 pm

    John, it’s not as simple as it looks, as there are so many factors to consider. Nevertheless, I suggest you start your research with Article 997 of the Civil Code:

    “When the widow or widower survives with legitimate parents or ascendants, the surviving spouse shall be entitled to one-half of the estate, and the legitimaye parents or ascendants of the other half.”

  15. 1 JOHN Nov 24th, 2007 at 1:38 am

    I would like to know if one spouse dies in the Philippines owning Conjugal Property with no born children. If the husbands Parents are still alive are they entiled to any part of the property?

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