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Title IV
PROPERTY RELATIONS BETWEEN
HUSBAND AND WIFE

Chapter 1
GENERAL PROVISIONS
(Arts. 74-81, FC)

1. What is meant by marriage settlement? (1932)

ANS: A marriage settlement is defined as a contract entered into by persons who
are about to be united in marriage for the purpose of fixing the condition of the conjugal
partnership with regard to present and future property. (9 Manresa 106.)

2. What shall govern the property relations of the spouses?

ANS: The property relations between husband and wife shall be governed in the
following order:
(1) By marriage settlements executed before the marriage;
(2) By the provisions of the CC as amended by the FC; and
(3) By the local customs. (Art. 74, FC.)

3. What economic system may be agreed upon by the future spouses in the
marriage settlement? (1950)
ANS: The future spouses may, in the marriage settlement, agree upon (1) the
regime of absolute community, or (2) conjugal partnership of gains, or (3) complete
separation of property, or (4) any other regime. In the absence of marriage settlement, or
when the regime agreed upon is void, the system of absolute community of property as
established in the FC shall govern. (Art. 75, FC.)

4. Give the essential features of each of the above contracts. (1950)

ANS: The essential features of the above contracts are:
(1) Conjugal partnership of gains. That there are certain properties which still
belong to each of the spouses exclusively and over which they exercise
exclusive ownership and administration; that all the fruits of such properties,
the income from the work or industry of both spouses during the marriage,
and those which they acquire during the marriage by onerous title with
conjugal funds shall be placed in a common fund, which shall be divided
equally between them or their heirs upon the dissolution of the marriage; that
the husband, as a rule, shall administer such conjugal properties; that, as a
rule, such conjugal properties shall be liable only for debts contracted by the
husband which have redounded to the benefit of the family, and not for
antenuptial debts, or even for debts contracted during the marriage which have
not redounded to the benefit of the family; that such conjugal properties shall
be liable for the expenses of the marriage, and that, as a rule, the husband
cannot alienate or encumber such conjugal properties without the consent of
the wife. (Arts. 105-133, FC.)
(2) Absolute community of property. That all property of the spouses, with
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certain specified exceptions, belong to both husband and wife jointly; that
antenuptial debts of either spouse shall not be paid from the community,
unless the same have redounded to the benefit of the family; that debts
contracted by both spouses or by one of them with the consent of the other
shall be paid from the community; and that neither spouse may alienate or
encumber any community property without the consent of the other. (Arts. 88-
104, FC; Report of the Code Commission, p. 48.)
(3) Complete separation of property. That the separation of property may refer
to present or future property or both; that separation may be total or partial;
that in the latter case, the property not agreed upon as separate shall pertain to
the partnership of gains; and that each spouse shall proportionately bear the
family expenses. (Arts. 143-146, FC; Report of the Code Commission, pp. 48-
49.)
(4) Any other system or regime. The future spouse may agree on any other
kind of economic regime. The only limitation is that the agreement must not
be contrary to law, morals, good customs, public order, or public policy.

5. Suppose "N' and "B" in their marriage settlement expressly reject the
absolute community regime as established by the FC but did not agree on any
system to govern their property relationship during the marriage. What system will
apply? (1972)
ANS: Since, undoubtedly, the property relations of "A" and "B" cannot be
governed by the system of absolute community because in their marriage settlement they
expressly rejected it, it is clear that Art. 74 of the FC is not applicable. We must now
determine their intention as to what system shall govern. (Art. 74[1], FC.) For this
purpose, the contemporaneous and subsequent acts of the parties shall be principally
considered. (Art. 1371, CC.) If their intention cannot be ascertained, then we must apply
the local custom of the place. (Art. 74, FC.) In the absence of custom, the rules on co-
ownership shall govern.
6. Erasmo married a rich woman, Flora, who brought into the marriage
substantial assets. When Flora died, Erasmo claimed 1/2 of the said assets on the
strength of a public instrument executed by Erasmo and Flora during their
marriage whereby all their separate properties were converted into conjugal
properties. Is Erasmo's claim valid? (1974)
ANS: Erasmo's claim is not valid for the following reasons:
(a) As a rule, the property relations of husband and wife cannot be modified
during the marriage. It can only be done in the marriage settlement entered
into by the future spouses before the celebration of their marriage. The only
exception to this rule is in case of judicial separation of property during the
marriage under Arts. 66, 67, 128, 135 and 136 of the FC. (Art. 76, FC.) Since
the instrument executed by Erasmo and Flora during their marriage does not
fall within the purview of the exception, it is null and void;
(b) To sustain Erasmo's claim would provide an indirect way of circumventing
the ban against donations between spouses during their marriage as provided
for in Art. 87 of the FC;
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(c) Furthermore, to sustain Erasmo's claim would open the door to the
possible commission of fraud by the spouses. If one or both of them had
incurred either antenuptial debt or debts during the marriage which have not
redounded to the benefits of the family and for which the partnership cannot
be held liable, all that they will have to do would be to enter into a similar
arrangement in order to defraud their creditors.

7. What is the form required of marriage settlements and any modification

made therein as to effect the parties thereto? As to effect third persons?
ANS: The marriage settlements and any modification thereof shall be in writing,
signed by the parties and executed before the celebration of the marriage. They shall not
prejudice third persons unless they are registered in the local civil registry where the mar-
riage contract is recorded as well as in the proper registries of property. (Art. 77, FC.)
8. What is essential for the validity of marriage settlements entered into by a
minor who according to law may contract marriage? How about if the party
executing the settlement is under civil interdiction or is subject to any other
disability?
ANS: A minor who according to law may contract marriage may also enter into
marriage settlements but they shall be valid only if the persons designated in Art. 14 of
the FC (the parent, guardian or persons having legal charge of the minor) to give consent
to the marriage are made parties to the agreement, subject to the provisions of Title IX
(Parental Authority) of the FC. (Art. 78, FC.)
For the validity of any marriage settlement executed by a person upon whom a
sentence of civil interdiction has been pronounced or who is subject to any other
disability, it shall be indispensable for the guardian appointed by a competent court to be
made a party thereto. (Art. 79, FC.) Hence, where the judicial guardian of the person
under civil interdiction or under disability (e.g., deaf-mutes, spendthrifts or insolvents,
but not insanes who, even with the consent of their parents or guardians, cannot contract
marriage) does not sign the marriage settlement as a party thereto, the marriage
settlement is void.

9. What law shall govern the property relations of the spouses regardless of
the place of celebration of their marriage and residence? Exceptions.
ANS: In the absence of a contrary stipulation in the marriage settlement, the
property relations of the spouses shall be governed by the 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 properly 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 their extrinsic validity. (Art.
80, FC.)
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(Note: Under Art. 124 of the CC, it is the husband's national law that governs the
property relations where the spouses are of different nationalities. Said provision was
repealed by Art. 80 of the FC. Hence, the property relations of the spouses shall be
governed by Philippine laws where one party is a Filipino and the other is an alien.)

10. What is the effect upon the stipulations made in the marriage settlements
if the marriage should not take place? (1937, 1947)
ANS: Everything stipulated in the settlements or contracts in consideration of a
future marriage, including donations between the prospective spouses made therein shall
be rendered void if the marriage does not take place. However, stipulations that do not
depend upon the celebration of the marriage shall be valid. (Art. 81, FC.)