In the Philippines, when a couple decides to get married, they enter into a legal contract that includes their property regime. While the Absolute Community of Property is the default regime for married couples, the Family Code of the Philippines also recognizes an alternative system known as the Conjugal Partnership of Gains.
What is the concept of “conjugal partnership of gains” (CPG)?
Under the regime of conjugal partnership of gains, 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.
When is the presumption in case the property is acquired during the marriage in the name of one or both spouses?
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.
Is tax declaration alone sufficient to rebut this presumption?
No. Tax declaration in the name of one spouse are not sufficient to rebut the presumption. [1]
What are considered excluded properties under the CPG?
The following shall be the exclusive property of each spouse:
- That which is brought to the marriage as his or her own;
- That which each acquires during the marriage by gratuitous title;
- That which is acquired by right of redemption, by barter or by exchange with property belonging to only one of the spouses; and
- That which is purchased with exclusive money of the wife or of the husband.
Is the conjugal partnership liable to pay the personal debts contracted before or during the marriage, fines, indemnities and support of illegitimate children of either spouse?
No. As a general 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. Neither shall the fines and indemnities imposed upon them be charged to the partnership.
Exceptions:
- If they redound to the benefit of the family; or
- If the spouse who is bound should have no exclusive property or if it should be insufficient, provided that the charges and obligations of the conjugal partnership have been covered.
Are the winnings of either spouse in gambling, conjugal or separate property?
The winnings shall form part of the conjugal partnership. Those which are acquired by chance, such as winnings from gambling or betting are conjugal partnership. However, losses therefrom shall be borne exclusively by the loser-spouse.
What are the rules on properties acquired by gratuitous title by each spouse during the marriage?
They are subject to the following rules:
- Property donated or left by will to the spouses, jointly and with designation of determinate shares, shall pertain to the donee-spouses as his or her own exclusive property, and in the absence of designation, share and share alike, without prejudice to the right of accretion when proper.
- If the donations are onerous, the amount of the charges shall be borne by the exclusive property of the donee spouse, whenever they have been advanced by the conjugal partnership of gains.
- Retirement benefits, pensions, annuities, gratuities, usufructs and similar benefits shall be governed by the rules on gratuitous or onerous acquisitions as may be proper in each case.
To whom shall the administration and enjoyment of the CPG belong?
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.
When does the CPG terminate?
The CPG terminates:
- When there is a decree of legal separation;
- When the marriage is annulled or declared void;
- Upon the death of either spouse; or
- In case of Judicial separation of property during the marriage.
What is the effect of the separation in fact between the spouses on the regime of CPG?
The separation in fact between husband and wife without judicial approval shall not affect the conjugal partnership, except:
- The spouse who leaves the conjugal home or refuses to live therein, without just cause, shall not have the right to be supported;
- 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;
- In the absence of sufficient conjugal partnership, the separate property of both spouses shall be solidarily liable for the support of the family.
Will the execution of a public document to voluntarily dissolve the conjugal partnership be sufficient?
No. There must be a judicial order.
In case of death of one of the spouses, what is the effect of the failure of the surviving spouse to liquidate the community property?
If no judicial settlement proceeding is instituted, the surviving spouse shall liquidate the community property either judicially or extra-judicially within six months from the death of the deceased spouse. If upon the lapse of the six months period, no liquidation is made, any disposition or encumbrance involving the community property of the terminated marriage shall be void.
Should the surviving spouse contract a subsequent marriage without compliance with the foregoing requirements, a mandatory regime of complete separation of property shall govern the property relations of the subsequent marriage
During the liquidation of the property, where shall the support of the surviving spouse and the children come from?
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.
The Conjugal Partnership of Gains offers an alternative to the Absolute Community of Property and is designed to balance the interests of married couples in the Philippines. It recognizes the separate properties of spouses while promoting the equal sharing of gains and losses from assets acquired during the marriage.
Source:
The Family Code of the Philippines
[1] Villanueva v. Court of Appeals, G.R. No. 143286, April 14, 2004.
