In the Philippines, the Absolute Community of Property is a legal regime defined under the Family Code that governs the property relations between married couples. It is crucial for spouses to comprehend this concept as it has a significant impact on their financial matters, particularly in the event of death or separation.
What constitutes community property?
Unless otherwise provided by the law or in the marriage settlements, the community property shall consist of all the property owned by the spouses at the time of the celebration of the marriage or acquired thereafter.
When shall the system of absolute community of property commence between spouses?
It 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.
Are properties acquired during the marriage presumed to belong to the community property?
Yes, unless it is proved that it is one of those excluded therefrom.
What are excluded from the community property?
The following shall be excluded from the community property:
- Property acquired during the marriage by gratuitous title by either spouse, and the fruits as well as the income thereof, if any, unless it is expressly provided by the donor, testator or grantor that they shall form part of the community property;
- Property for personal and exclusive use of either spouse. However, jewelry shall form part of the community property;
- Property acquired before the marriage by either spouse who has legitimate descendants by a former marriage, and the fruits as well as the income, if any, of such property.
Can a spouse waive the rights, interest, shares, and effects during the marriage?
No waiver of rights, interest, shares and effects of the ACP can be made except upon judicial separation of property.
What is the effect of debts incurred by either spouse before their marriage on the absolute community of property?
Ante-nuptial debts of either spouse shall be considered as the liability of the absolute community of property insofar as they have redounded to the benefit of the family.
To whom shall the administration and enjoyment of the community property 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.
What are the instances when of the spouses may assume sole powers of administration?
In the event that one spouse is incapacitated or otherwise unable to participate in the administration of the common properties, the other spouse may assume sole powers of administration.
Do the sole powers of administration include disposition or encumbrance of property?
No, said 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 one of the spouses donate any community property without the consent of the other?
Generally, neither spouse may donate any community property without the consent of the other. However, either spouse may, without the consent of the other, make moderate donations from the community property:
- For charity;
- On occasions of family rejoicing; or
- On occasion of family distress.
When does the absolute community terminate?
The absolute community terminates:
- When there is a decree of legal separation;
- When the marriage is annulled or declared void;
- Upon the death of either spouse;
- In case of Judicial separation of property during the marriage; or
- Upon the filing of an affidavit of reappearance of the absent spouse.
What are the effects of the separation in fact between the spouses on the regime of absolute community?
Generally, the separation in fact between husband and wife shall not affect the regime of absolute community 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 community property, the separate property of both spouses shall be solidarily liable for the support of the family. The spouse present shall, upon proper 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.
Understanding the Absolute Community of Property under the Family Code of the Philippines is vital for married couples. It has both advantages and disadvantages, and couples should carefully consider their financial situation, long-term goals, and whether they should enter into a prenuptial agreement to modify this default regime. By being informed about these legal aspects, spouses can make informed decisions that align with their financial plans and marital harmony.
Source:
The Family Code of the Philippines
