Table - Property Regimes

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ACP CPG SP Other Regimes Definition Community property consists all property owned by the spouses at the time of the celebration of the marriage. Husband and wife place in a common fund the PPFI (proceeds, products, fruits and income) from their SP and those acquired through efforts or by chance, which will be divided between them EQUALLY [as a general rule] upon the dissolution of the marriage or the partnership. GR: Marriage settlement Default regime on or after Aug 3, 1988 Default regime before Aug 3, 1988 Existence Only if this regime has been agreed upon in the marriage settlement [for marriage celebrated on or after the effectivity of FC] Only by express declaration in marriage settlement Xpn: Judicial order *Voluntary judicial SP – both spouses go Application of: ARTICLE 147 When a man and a woman: 1. Capacitated to marry each other 2. Live exclusively with each

description

A comparison between the different property regimes based on Persons and Family Relations Book by Paras.

Transcript of Table - Property Regimes

ACP CPG SP Other RegimesDefinition Community property

consists all property owned by the spouses at the time of the celebration of the marriage.

Husband and wife place in a common fund the PPFI (proceeds, products, fruits and income)

from their SP and those acquired through efforts or by chance, which will be divided between them EQUALLY [as a general rule] upon the dissolution of the marriage or the partnership.

GR: Marriage settlement Default regime on or after Aug 3, 1988

Default regime before Aug 3, 1988

Existence Only if this regime has been agreed upon in the marriage settlement [for marriage celebrated on or after the effectivity of FC]

Only by express declaration in marriage settlementXpn: Judicial order

*Voluntary judicial SP – both spouses go to court/ Joint Verified Petition*Judicial SP for sufficient cause – based on: Art 1351. spouse penalized with civil interdiction2. declaration of absence of one spouse3. loss of parental authority by court order4. abandonment or failure to comply obligations5. abuse of administration power

Application of:ARTICLE 147When a man and a woman:

1. Capacitated to marry each other

2. Live exclusively with each other as H & W

3. Without legal marriage or VOID Marriage under Art 36

ARTICLE 148Cohabitation with legal impediment/sEx:

1. Below 182. Incestuous

6. separation in fact for at least 1 year AND reconciliation is highly improbable

marriage/ relationship

3. Bigamous marriages

4. illicit/adulterous relationships

Commencement Shall commence at the precise moment the marriage is celebrated

1. For express declaration, at the time of marriage

2. For conversion to SP, after dissolution of ACP/CPG by judicial order

No waiver of rights, interests, shares and effects during the marriage can be madeXPN: judicial SP, or last will and testament

Art 139Duty to record:

1. Petition for SPAND

2. Final affirmative judgement

Offices:1. Local civil registry

AND2. ROD where the

property is located

Art 140No prejudice to creditors

ART 1471. Presumption of

joint acquisition2. If only one is

capable to purchase, the other is deemed to contribute in the care and maintenance of the family and of the household

ARTICLE 1481. Actual joint

contribution of money, property or industry

Governing Principle Principle of co-ownership Contract of partnership Art 147 only – principle of co-ownership

Property covered 1. All the property owned by the spouses at the time of the celebration of marriage.

2. All property acquired by the spouses during the marriage.

1. Acquired by onerous title during the marriage using the common fund

2. Obtained from labor, industry, work or profession of either or both spouses*salary is conjugal

3. Natural, industrial or Civil Fruits, or received during the marriage from common property and net fruits from exclusive property

4. 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. Acquired through occupation

6. Livestock existing upon the

1. Present property2. Future property3. Both

1. Total2. Partial (the

property without SP agreement shall be governed by ACP)

Only Property acquired during the existence of the marriage (even later declared void) or during the existence of the cohabitationBUT NEEDS TO BE PROVEN IF ACQUIRED ONLY BY ONE SPOUSE

dissolution of the partnership in excess of the number of each kind brought to the marriage

7. Acquired by chance. [Losses shall be borne exclusively by the loser-spouse

Property Excluded[NOT Covered]

1. Property acquired during the marriage by gratuitous title by either spouse, and the fruits and the income thereof, if any

XPN: expressly provided to take form part of the community property

2. Property for personal and exclusive use of either spouse.

XPN: Jewelry shall form part of the community property

3. Property acquired during the previous marriage, and the fruits and the

Property by Direct Acquisition:

1. Property brought to the marriage

2. Property acquired during the marriage by gratuitous title (donations, inheritance).No Exception.

Note: if a friend donates a parcel of land to the spouses, the said land is not conjugal, but separate property (1/2each), without prejudice to the right of accretion when proper – Art 113.Note: onerous donation, charges shall be borne by the exclusive property of the done spouse – Art 114

income of such property, by the spouse who has legitimate descendants

Note: Hidden treasure found is conjugal

Property by Substitution:3. Property acquired

by right of redemption, by barter or by exchange with a property owned by one spouse only

4. Property purchased with exclusive money

Note: Spouse retains ownership, possession, administration and enjoyment; may transfer the administration by public document registered in the ROD where the property is located. Art 110

Property Acquisition during the marriage

Presumed to belong to the communityXPN: Proven to be one of those excluded from the community

Presumed to be conjugalXpn: Need to prove that the funds used to purchase is from the exclusive property.

Note: if a land is purchased with exclusive

ART 147Joint Acquisition, with ownership of equal shares

ART 148Actual Joint Acquisition, with ownership in proportion to the

and conjugal funds, such land shall be partly exclusive and partly conjugal. Otherwise, to be exclusive, must reimburse the conjugal funds used or the other way around

Note: Retirement, benefits, pensions, annuities, gratuitous, usufruct and similar benefits shall be governed by the rules on gratuitous or onerous acquisitions.Gratuitous acquisition – exclusive propertyOnerous acquisition – know first the source of funds, if from exclusive funds or conjugal funds

Note: for property bought on installment paid partly from exclusive funds and partly from conjugal funds, who owns the property?-Based on the transfer of ownership. If transfer is before marriage, exclusive property. If transfer during the marriage, conjugal property, subject

respective contribution

to reimbursement to the spouse who initially bought the property

Note: Receivables of one spouse to be collected in installments – principal amount is exclusive, while interests falling due during the marriage is conjugal

Charges upon and Obligations

1. Support of the spouses, common children and legitimate children of either spouse

Ratio-basedFamily expenses in proportion to income of the spousesIf no income, in proportion to the current market value of SP

2. All debts/obligations contracted during the marriage: a. for the benefit of the community/partnership; b. by both spouses; c. by one spouse with consent of the other

Solidary liability of the spouses to the creditors for family expenses

3. Debts/obligations contracted by either spouse without the consent of the other but the family have been benefited

Note: Before the enactment of FC, sale of property without marital consent is merely voidable. Under the FC, such sale is void.

4. Taxes, liens, charges and expenses, including major or minor repairs, upon the community/conjugal property

5. Taxes and charges and expenses for mere preservation

Taxes and expenses for mere preservation made during the

made during the marriage upon the separate property used by the family

marriage upon the separate property

6. Expenses to enable either spouse to commence or complete a professional or vocational course, or other activity for self-improvement

7. Ante-nuptial debts of either spouse which redounded to the benefit of the family

8. Value of donation or of promise of both spouses in favor of the common legitimate children for the exclusive purpose of commencing or completing a professional/ vocational course/ other self-improvement activities

9. The payment of ante-nuptial debts of either spouse shall be considered advances to be deducted from the share of the debtor-spouse upon liquidation, if exclusive property is insufficient.

Ex: 1. Support of illegitimate children of either spouse, 2. Liabilities incurred by

Improvements on Exclusive Property by Conjugal Partnership, either for Utility or Adornment: If value increases, the exclusive property shall become a conjugal, subject to reimbursement. Otherwise, retain as exclusive.

either spouse by reason of crime or quasi-delict)10. Expenses of litigation between spouses

Xpn: Suit found to be groundless, charged to the spouse who first filed the petition

In case of insufficiency of the property

Spouses solidarily liable [for the unpaid balance] 1. Solidarily liable for family expenses, in proportion to the income/current market value of exclusive property

Personal Debts - Art 122:

Note: Before a spouse can advance from the conjugal funds, satisfy first all debts and obligations

Gambling and Games 1. Loses shall be borne by the loserWinnings shall form part of the property

Ownership, Administration, Enjoyment, Disposition of Property

GR: Joint administration and enjoyment by both spousesXPN: In case of disagreement, husband’s decision will prevail, subject to recourse to the court by wife for proper remedy(Prescription: 5 years from the date of implementation of the husband’s decision)

RULES if one spouse is incapacitated/ unable to participate:*Administration- the spouse may assume sole powers of

No need of marital consent

Note (Art 142):Administration of all classes of exclusive property of either spouse may be transferred by court to the other spouse:

1. One becomes the guardian of the other

ARTICLE 147Ownership are of equal shares.

Disposition/ EncumbranceNEEDS marital consent, until after the termination of cohabitation

ARTICLE 148Ownership in proportion to the respective

administration*Disposition and Encumbrance-the spouse needs 1. Written consent of the other spouse, or 2. Authorization by the court**Xpn on Encumbrance:Encumbrance of one year or less is allowed wilthout written consent of the other spouse or authorization by court***Note: Foreigner spouse has no vested right over land property in the Philippines, the Filipino spouse has dominion over their community property.

2. One declared an absentee

3. One spouse sentenced with civil interdiction

4. One becomes fugitive from justice

Xpn:If the other spouse is also incapacitated by reason of incompetence, conflict of interest or any other just cause, the court shall appoint another suitable person to be the administrator

contributions. If none, presumed to be equal

Donations NOT allowed except:- Moderate donations for charity or on occasion

of family rejoicing or family distressGrounds for Termination of Regime

1. Death of either spouse2. Decree of legal separation3. Annulment or Declaration of Nullity of

Marriage4. Judicial separation of property during the

marriage under FC Art 134 and 138Effect ofSeparation in Fact(Separation de Facto- spouses agreed to live separately in bed and board even without decree of legal separation)

Does not affect the regime that governs

The spouse who left the conjugal home or refuses to live therein, without just cause, loses the right to be supported

Note:1. Judicial authorization. Required by law, when a

transaction of one spouse needs the consent of the other [who left the conjugal home and cannot be found].Ex: disposition and encumbrance transactions, especially to satisfy the debts/obligations share of the absentee-spouse.

2. If community property is insufficient, separate property of both spouses is solidarily liable for the support of the family.

Abandonment without just cause or failure to comply marital, parental and property relations obligations

Aggrieved spouse shall petition the court for:1. Receivership2. Judicial separation of property – best remedy3. Authority to be the sole administrator of the

community property

Note: presumption of abandonment is 3 months without information of whereabouts, for this purpose only.

Liquidation Procedure Upon dissolution of the property regime

1. Inventory of the community property and the exclusive property of each spouse.

No liquidation required because the properties declared to be exclusive and separate.

No liquidation required because no property regime governs

2. Advances in payment of personal debts/obligations shall be credited to the conjugal partnership

3. Reimbursement to each spouse for using exclusive

property in acquiring conjugal property, including the property which became a conjugal property after improvements made

4. Payment of debts and obligations of the community property.

5. Delivery of the remains to each of the spouses.6. Payment of the

loss/deterioration of movables (exclusive) used for the benefit of the family

7. Equal division of the net remainder of the community property

Xpn: 1. agreement on a different proportion; 2. Voluntary waiver of share which must be presented in court

8. Delivery of presumptive legitimes of the common children upon partition

9. Conjugal home shall be adjudicated according to the agreement in the marriage settlement.Default: shall be granted to the spouse with the majority of the common children(par 9. Is only applicable to annulment and legal separation cases. Art 147 shall apply for Void Marriages)

Rule of Forfeiture If either spouse contracted the marriage in bad faith:Share in the partition shall be forfeited in favor of –

1. Common children or

2. Children of the guilty spouse from previous marriage or

3. Innocent spouse, if no children

ARTICLE 147If one spouse in void marriage in good faith:Share of the spouse in bad faith shall be forfeited in favor of –

1. Common childrenIf none,

2. Surviving descendants

3. Innocent spouse

ARTICLE 148If one spouse is validly married to another, his/her share in the co-ownership shall accrue to the property of the existing legal family.

If one spouse acted in bad faith but not married, his share shall be forfeited in favor of – (Art 147)

1. Common children2. Surviving

descendants3. Innocent spouse

If both spouses acted in bad faith, Art 148 still applies

Termination of Marriage By Death

Liquidation procedure: settlement of the estate of the deceased

Judical or Extrajudical liquidation by the surviving spouse is allowed, only within 1 year from the death of the deceased spouse.If lapsed, any disposition or encumbrance of the community property shall be void.

Subsequent marriage Without compliance with the liquidation procedure, mandatory regime of separation of property shall govern.