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.

45 thoughts on “Conjugal Partnership of Gains: Property Relations in Marriage

  1. tri2

    Atty.

    I would like to be clarified on the following:

    I remarried in year 2009, eleven (11) years after my first spouse passed away. I was able to marry my present spouse when she got an annulment from her previous marriage. She and her former husband have lived separate lives since 1996 and their marriage was declared annulled by the court in 2008.

    1. In 2004, she started paying installments for two (2) residential lots she purchased in Bulacan and expects to pay for it in full in 2014. She is paying exclusively for these lots.

    What would be the rule on property relations among myself, my wife and her former husband insofar as the lots is concerned?

    2. I have four (4) children from my deceased wife while my spouse has a daughter. All of them are of major age. I own a house and lot where my spouse and I are living with my own 3 children. My eldest son and my spouse’s daughter are abroad.

    I acquired our house and lot in 1987 with extrajudicial settlement among myself and my 4 children which provides that we divide half of the house and lot, being the conjugal share of my deceased wife.

    What would be the rule on property relations among myself, my spouse, my 4 children and my stepdaughter insofar as the house and lot is concerned?

    How will we go about the registration of the properties in both cases?

    Thanks.

    Reply
  2. patricio

    dear sir,
    I want to ask if my mother can still claim his part of my fathers properties after he died five years ago. He died at the age of 91, when he was still alive my father and my mother had an arguement that made my mother left and live to the other house(my father has two seperate properties).In doing so my step sister who was living in the U.S. came to the phillippines and without us knowing transfer the deeds of both properties to her name.My age of my father then was 80, after only a few months my parents quarrel was over, but only a few years later that came to our knowledge of what my step sisiter did. My mother finish only 1st grade in elememntary and has no knowledge of our laws even though it is very hard for her to accept what happen we dont know what to do, she is still living in the second house which she had been living in their 30 years of marriage. Now my half sister wants her to leave the house for they are selling the lot..Hoping you can give us legal advice ang help on our situation. Thank you sir and more power.

    Reply
  3. patricio

    Dear Sir,
    I want to ask if my mother can still claim his part of my father’s properties after he died five years ago. He died at the age of 91, when he was still alive my father and my mother had an argument that made my mother left and live to the other house (my father has two separate properties).In doing so my step sister who was living in the U.S. came to the Philippines and without us knowing transfer the deeds of both properties to her name. My age of my father then was 80, after only a few months my parents quarrel was over, but only a few years later that came to our knowledge of what my step sister did. My mother educational attainment was only 1st grade in elementary and has no knowledge of our laws. It is very hard for her to accept what had happen, and we don’t know what to do, she is still living in the second house which she had been living in their 30 years of marriage. Now my half sister wants her to leave the house for they are selling the lot.Hoping you can give us legal advice and help on our situation. Thank you sir and more power.

    Reply
  4. purl

    atty,
    i would like to ask about my situation.
    my grandparents (parents of my father) donated a land to my father after marriage. now, the parents of my dad died and also my father. my mother sold the lot. how much is my part as only child? my mom told me that i will get 1/2 of it. i am already 29 years old. and im living separate from my mom.
    thank you!

    ill be waiting for your reply @

    Reply
  5. sarah.espaltero

    If for example, i purchased a parcel of land in a province before getting married. I named the title before me and indicated that i’m single. Would that be considered as part of the conjugal property when i got married?

    Reply
  6. d_epetito

    Hello atty..

    wala n ba kaming karapatan nsa naiwan ng tito ko sa kanyang mga paupahan , nauna lang po sya namatay sa asawa nya at nung namatay ung tito ko binenta daw nya ung mga bahay sa mga pamangkin nya ,
    ano ang gagawin namin para makuha yung kalahati?
    kasi nahati n po ng magasawa yan kaso walang kasulatan pero may witness po yung mga nakatira sa paupahan nila,,,

    sana po masagot mo ito salamat

    Reply
  7. viehermosoamor

    I would like to ask advise on what should I do on my property problem.
    My father die 3 year earlier than my mother, before my father die my parents has conjugal debts. After years my mother sick and she lend money to multiple person. In order to pay her debts she sale her house or shall we say a family house to me. I am the oldest daughter among 5 children of my parents.
    During the signing of deed of sale my two sister and younger brother sign to justify that they agree the said saling or transaction and we have also outside our family witness the said agreement. My problem is one brother did not sign the deed of sale because he is in Cebu prison house . My mother is in need . Non of us benefit the money from the house it’s not even enough to pay my mother debt.
    Now my brother who did not sign the said saling of house demand the his share from house to me cause I am now the new owner.
    I guess that is not possible cause I pay what my mother saling price to. He suppose to ask my mother about his share but that not possible cause she die with cancer after one month from the time sale the house me. My younger sisters and younger brothers and even me do nth any penny from the house.

    What should I do or action to do with my brother who ask money from me.? He said he has right to claim his share from the house. I told him if he has the right to claim me too. But we don’t have left over only my mother knows what she does with money. This month I like to sale this house in order to scape the discussion of my ex house. I am the new owner so I have right to sale the house, but the problem is he harassing me or the prospective buyer.. What should I do…

    Reply
  8. confused40

    Dear Attorney;

    I am married for 14 years. My husband has been constantly drinking. He promised a lot of times to stop it but he never did. Also, i suffered a lot of verbal insults, criticisms and sarcasms from him especially when we fight. There were also 3 times of instanced that he hit me when he was under the influence of alcohol. Moreover, he does not inform me of his plans esp on financial matters. He had unnecessary loans and so i had been shouldering the bigger part of the finances. Until one day, i found out that I fell out of love because of these things that had already piled up. In many situations, he would also insult our children and use abusive words on them. Now, whenever he comes home drunk which is too often, I would be too nervous. He also doesn’t try to augment our budget knowing that he’s salary is too small for the needs of our 6 kids. I have been financially problematic too. We have an L300 can bought under his name, he put up a computer shop in Manila without my knowledge but he is not giving me any part of the income and we are still paying our house which is still owned by my sister-in-law and so he bears the title for it.
    With all of these, i plan to leave my husband but i intend to stay in the house and ask him to move out. Also, i am worrying if he will support the kids completely if we will be formally separated. Please help me for the best thing to do. Thank you in advance.

    Reply
  9. anne

    atty,

    i would like to ask what you think on the the following questions:
    1.can a husband solely and exclusively owning a parcel of land costituted their family home on the said land sell the same?
    2.whether a debt be extinguished by marriage between the debtor and creditor?

    Reply
  10. Anthony

    Dear a tty.

    I just want to ask.. my mother bought a land way back 1995 and my father doesn’t know it on the title my mother’s name and married too my father and she is the only one signed so we sold the land and it’s written clearly that my mother is on the title but married to what can we do about the deed of sale

    Reply
  11. Vangie

    Dear Atty,

    My husband and I are an active members of our church for 12 years but this year, my husband changed religion. Early part of our 12 years involvement in the church, both of us agreed to donate our unfinished house for the church’s use. There is no legal donation made but just a donation agreement signed by both of us. The church funded our house’ construction, renovation and major repairs. Early this year also, our pastor told us to sell our house for the proceeds to be use for a big ministry project. However, my husband disagree and does not agree to sell our house, until we had disagreements and quarrel already.

    Can I exercise my right as his wife to sell our house, which is our conjugal property and donate my 50% share, if my husband will agree to that terms?

    If my husband continue to disagree, what can be my course of action?

    Reply
  12. Melissa

    Blessed Day!

    My lolo waived part of the residential property to his daughter and there’s a paper supporting it but the siblings havent seen the paper. The other daughter asked for a part of the property but my lolo said she should ask form her sister as the property has already been waived. The sister refused to give the other daughter a part of the property saying that she is a widow while her sister is happily married. What law governs this kind of matter? Lolo passed away years after that conversation but my lola who is turning 90 is still alive, also living in the same compound but is in a different house. She isnt saying anything about the matter but the siblings are now almost arguing about the ownership of the waived property.

    I hope you could email me the best help and sound advise.

    Reply
  13. Randy Hormigos

    Dear Atty,

    I’ve been separated with my wife for 13 years and when I resign from my company I allowed her to get it on my behalf. She told me she will deposit the money ( time deposit). When the time come that I ask about the money she told me she spend it all for my kids with out my knowledge. The question is can she get awy with that easily? What legal action can I do? Is that a part of conjugal property?

    Regards
    Randy

    Reply
    1. Akashi

      Dear Mr. Hormigos,

      According to this blog, ‘those obtained from work or profession’ means she has right for those.

      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;I have questions for you.

      You said that she spent it ALL on your kids. How many kids do you have? In which schools are they in? Does your children stop schooling? How much is the money your wife got? When did she get them? Are you sure she spent it all on your kids? Do you have some credit payables? Some debts or something needed to be paid? Do you provide them enough? Are you providing additional support for them? Do you do gambling? Why does she need to use your separation pay?

      Thank you in advance if your going to answer my questions. We’re in the same situation so I just want to know from someone who shares the same boat as me.

      Regards,
      Sei

      Reply

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