Marriage Settlement (Prenuptial Agreement) and Introduction to Property Relations in Marriage

What are the differences between absolute community, conjugal partnership of gains, and complete separation of property? Somebody asked this question some time ago, but we were not able to immediately post a discussion on this matter due to heavy law office work. This is also the same reason why we are constrained to break down the discussion into six parts, 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.

There are related topics alredy discussed, such as the property relations between a man and a woman living together without being married. For this part (Part I), let’s talk about prenuptial agreements and a brief introduction on the property relations between husband and wife.

Can the future spouses agree on the property relations during marriage?

Yes. A man and a woman who are planning to get married may enter into a contract defining or providing for their property relations during marriage. This is called a prenuptial agreement” or “marriage settlement.”

In the absense of a marriage settlement or prenuptial agreement, what governs the property relations between the spouses?

In the absence of a marriage settlement (or when the regime agreed upon is void), the property relations between the spouses shall be governed by the system of absolute community of property. In other words, the absolute community of property is the default system under the Family Code. Prior to the effectivity of the Family Code (3 August 1988), the default system is the conjugal partnership of gains, oftentimes referred to as CPG by law students and lawyers.

When should a marriage settlement be executed?

The marriage settlement or prenuptial agreement, or any modication thereof, must be made BEFORE the celebration of the marriage.

Could we just agree and sign a prenup document after the marriage?

It is called a “prenuptial” agreement because it must be executed BEFORE marriage. Agreements or changes after the marriage ceremony, except in cases of judicial separation of property during the marriage, are not valid. This means that the spouses could not simply agree later on to change their property relations, except upon a petition filed in court.

What is the form of the marriage settlement?

The marriage settlement and any modification thereof shall be in writing, signed by the parties and executed before the celebration of the marriage. Also, before the marriage settlement may prejudice third persons, like creditors, the marriage settlement must be registered in the local civil registry where the marriage contract is recorded, as well as in the proper registries of properties.

What about minors who enter into marriage or persons sentenced with civil interdiction?

The law generally speaks of “minors” as those who are under 18 years old. For purposes of the provisions on marriage settlement, however, a “minor” refers to those at least 18 years old but below 21, who needs parental consent to get married. Those who are designated by law to give consent, primarily the parents, must also sign the marriage settlement in order for it to be valid.

On the other hand, for the validity of marriage settlements executed by persons on whom the sentence of civil interdiction has been pronounced or who is subject to any other disability, the guardian appointed by a competent court must be made a party.

What happens if the marriage ceremony is called off?

A marriage settlement, including any donations by reason of marriage (donations propter nuptias, which will be discussed later in Part 5), is rendered void if the marriage does not take place. An exception to this rule are those stipulations that do not depend on the celebration of the marriages, such as the recognition of an illegitimate child.

What are the property relations that the future spouses may provide in a marriage settlement?

The future spouses may agree to the following: (1) System of absolute community; (2) Conjugal partnership of gains; (3) Complete separation of property; or (4) any other regime or system, so long as it is not contrary to law, morals, good customs, public order or public policy. There’s no sense entering into a marriage settlement when the future spouses prefer the system of absolute community, as it is the default system in the absence of a valid agreement between the spouses. The spouses may, however, want to provide for certain modifications to any of the regimes or system stated above.

What law governs the property relations of the spouses?

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.

19 thoughts on “Marriage Settlement (Prenuptial Agreement) and Introduction to Property Relations in Marriage

  1. wondergirl

    Hi attorneys!

    I’m just wondering… Suppose the couple decided to execute a prenup, say, CPG or absolute community, which means, the properties acquired prior to the marriage does not form part of the conjugal property, therefore, neither has any claim to such properties acquired before marriage. If one spouse dies intestate, his or her exclusive properties shall now form part of the decedent’s estate, in which case, the surviving spouse would then have a rightful claim to such exclusive property as a legal heir, is that correct? If that’s the case, can the prenup include a provision wherein the surviving spouse shall waive his/her on the decedent’s exclusive properties in favor of their children?

    I’d appreciate your insight on this. Thanks!

    Reply
  2. flor

    Hi po! Sir? Can I ask on how can I find the legislative intent of the family code specifically regarding prenuptial agreements?

    Reply
  3. Joseph

    Hi,

    Magandang araw po.

    Itanong ko lang po sana kung hindi talaga pwedeng mag execute ng “postnuptial” agreement and couple aside kung may court order? Wala pa naman pong existing na property involved. Nasa stage pa lang po ng gustong mag purchase ng properties. Money involve po sa pagbili ng properties ay individual’s employment salary.

    Maraming salamat po.

    Reply
  4. Rog

    Hi Atty. Fred, I would just like to ask for the legal basis about the validity of the recignition of the illegitimate child in marriage settlement.

    Reply

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