Love, Law, and Property: 'Til Death, How Do We Part?

There is a popular phrase that states that “all is fair in love and war”— however when it comes to marriage, how will you define fairness when it comes to managing and parting properties?

The law offers remedies when it comes to the division of assets and properties such as the following:

Chapter 3 of the Family Code of the Philippines defines the general provisions of the system of Absolute Community. Article 88 states that 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.

On the other hand, as outlined in Article 117 of the Family Code of the Philippines, conjugal properties include the following:

a. Properties acquired during marriage by either or both spouses.

b. Properties obtained through work, profession, labor, or industry.

c. Any income or benefits generated from both shared and individual properties during the marriage are divided based on whether the property is considered joint (conjugal) or separate (exclusive).

d. If a hidden treasure is discovered during the marriage, its value is equally shared by both spouses.

e. When a marriage ends, any livestock (animals) acquired during the marriage, beyond what each spouse originally brought into the marriage, will be equally divided between the spouses.

f. Any winnings from gambling or betting during the marriage are shared by both spouses; however, if losses occur, the spouse who incurred the loss is solely responsible for covering it.

Three Types of Property Regimes in the Philippines:

1. Conjugal Partnership of Gains (CPG): This regime states that properties owned by both spouses during the marriage are considered joint properties, regardless of who acquired them.

2. Absolute Community of Property (ACP): This regime means that all properties acquired by either spouse during the marriage become joint property. This applies unless there is a prenuptial agreement in place. Under this arrangement, all assets (whether acquired before or during the marriage) are shared equally by both spouses.

3. Complete Separation:Before the spouses enter into a union, they may enter into a marriage settlement (such as a prenuptial agreement) wherein all properties that the spouses acquired before, during, and after the marriage shall be treated exclusively and separately.

When both spouses enter into marriage without any marriage settlements, their properties will be automatically governed by ACP.

Management and Control of Conjugal Property

Both spouses have the right to manage and control their properties during the course of their marriage. It is important to maintain joint management, meaning that decisions regarding the properties should be made together.

However, there are exceptions where either spouse can act independently under certain circumstances. For example, one spouse may make decisions alone in the areas of business, in the absence of the other spouse, or for any valid reason.

Termination of Conjugal Partnership Regime (Article 126)

The conjugal partnership regime can be terminated under the following circumstances:

1. The death of either spouse.

2. A legal separation decree.

3. An annulment or declaration of nullity.

4. A judicial separation of property during the marriage.

Why is it Important to Learn about the Conjugal Property Regime?

For couples entering a legal union, it is essential to understand how their assets and properties will be managed throughout their marriage. Knowing the difference between conjugal property and exclusive property is crucial, especially if conflicts arise that could lead to legal separation. This knowledge enables spouses to protect their rights and ensure a fair distribution of the assets acquired during their union.

Before entering marital life, both partners should discuss how their properties and assets will be controlled and managed. If they agree on certain modifications or arrangements, they may consider entering into a marital settlement or prenuptial agreement to safeguard their assets in the long run.