PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE
CHAPTER 1 – General Provisions
Property relations shall be governed in the following order:
 Marriage settlements
 Family Code
 Local customs
MARRIAGE SETTLEMENTS
Marriage settlement
 Ante nuptial contract
 Fixes the property relations of spouses during marriage
 Must be made before the celebration of marriage and within the
limits provided under Family Code
Modification of marriage settlement
 General rule: must be made before the celebration of marriage
 Exceptions to the rule: modification must be judicially approved
and refers only to Art. 66, 67, 128, 135, and 136 of the Family
Code.
o By decree of legal separation
o Spouses who were legally separated reconciled and
agreed to revive their former property regime
o Judicial separation of property on the ground that a
spouse abandons the other without just cause, or fails to
comply with his obligations to the family
o Judicial separation of property (Art. 135)
o Spouses jointly filed a petition for voluntary dissolution
of ACP or CPG (Art. 136)
Formalities
 Must be in writing
 Signed by the parties
 Shall not prejudice third persons unless registered in the local civil
registry where marriage contract is recorded, as well as in proper
registries of property
 Effect of a verbal/oral marriage settlement
o Unenforceable – a valid contract that cannot be enforced
unless ratified
Parties to marriage settlement
 General rule: only future spouses are the parties to a marriage
settlement
 Exceptions:
o Spouse/s at least 18 y/o but below 21 – party whose
parental consent is required shall also be a party to the
marriage settlement
o Spouse/s suffering from civil interdiction or from any
capacity to give consent – guardian appointed by
competent court
Laws governing property relations
 General Rule: Philippine laws, regardless of place of celebration of
marriage and residence
 Exceptions:
o Stipulation to the contrary
o Both spouses are aliens
o Affecting properties not situated in the Philippines (lex
rei sitae)
 Property relations are governed by the national law of the
spouses
Effects if marriage does not take place
 General rule: validity of marriage settlement and any stipulation
thereto, including donation propter nuptias, shall be void if no
marriage takes place
 Exception: any stipulation not dependent upon celebration of
marriage shall remain valid (e.g., paternity)
 Donation propter nuptias – shall remain valid but becomes
revocable if not stipulated in the marriage settlement
FAMILY CODE
Property regime by default in the absence of, or a void, marriage
settlement:
 Marriages under Family Code (Aug. 3, 1988 onwards) – Absolute
Community of Property (ACP)
PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE
 Marriages under Civil Code (prior to Aug. 3, 1988) – Conjugal
Partnership of Gains (CPG)
Properties of spouses who got married prior to the effectivity of Family
Code without a marriage settlement shall be governed by CPG and shall not
be converted to ACP, because doing so would be to impair their acquired or
vested rights to their separate properties under CPG.
LOCAL CUSTOMS
May only arise if future spouses execute a marriage settlement and
stipulate therein that the absolute community shall not exist between
them but without providing for the rules or regime that shall govern their
property relations.
CHAPTER 2 – Donations by Reason of Marriage
Donation Propter Nuptias – those made before its celebration, in
consideration of the same, and in favor of one or both of the future
spouses
Requisites:
 Made before the celebration of marriage
 Made in consideration of marriage
 Made in favor of one or both spouses
o Donee/s must be either or both of the spouses, although
the donor need not be one of the spouses.
Celebration of marriage is not a condition sine qua non for the validity of
the donation. Hence, it remains valid, but becomes revocable, even if no
marriage takes place.
FORMALITIES
 Movable – orally or in writing
o Oral donation requires simultaneous delivery
o Personal property exceeding P5,000 – donation and
acceptance must be in writing
 Immovable – public document
o Acceptance – made in the same deed of donation or in a
separate public document
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o If acceptance is made in a separate instrument, donor
shall be notified in an authentic form. This must be noted
in both instruments
 Effect when formalities are not followed: void
 Express acceptance – under NCC, valid. Under FC, must follow
formalities, otherwise, void.
DONATIONS BETWEEN FUTURE SPOUSES
Limitations
Agreed property regime in marriage settlement is other than ACP
 Donation of future spouse in favor of the other, as stipulated in
marriage settlement– must not exceed 1/5 of present property of
donor
 Excess over 1/5 – void; remainder – valid
 If donation propter nuptias exceeding 1/5 of present property of
donor-spouse is not contained in the marriage settlement –
excess shall still be void. Intent of the law is to avoid taking
advantage of property of spouses.
 If no marriage settlement – 1/5 shall not apply because by default,
ACP will govern their property relations
Donation of future property
 Ordinary donation of future property – prohibited
 Donation propter nuptias of future property where donor is a
third party - prohibited
 Donation propter nuptias of future property between spouses –
allowed
o This shall be in the nature of a donation mortis causa –
effective only upon death of donor spouse
o Formalities – formalities of wills outlined in Art. 804 to
809 of NCC shall apply
DONATIONS SUBJECT TO ENCUMBRANCE
Donation propter nuptias of a property subject to encumbrance is valid. In
case of foreclosure:
 Proceeds not sufficient to cover total indebtedness – donee shall
not be liable
 Proceeds are more than the amount of indebtedness – donee
shall be entitled to the excess
REVOCATION OF DONATION PROPTER NUPTIAS
PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE
By reason of non-celebration of marriage
 If stipulated under marriage settlement – void
 If made outside marriage settlement – remains valid but becomes
revocable
By judicial declaration of nullity of marriage
 General rule: remains valid but becomes revocable
 Exception: the following shall result to revocation by operation of
law
o Void under Art. 40 of FC if donee contracted marriage in
bad faith
o Subsequent marriages under Art. 41 of FC where both
spouses acted in bad faith and void under Art. 44
(donation between spouses)
 If donee is a third party – revocable
By reason of annulment of marriage
 General rule: does not affect validity of donations propter nuptias
 Donee acted in bad faith in contracting the marriage – revocable
 General rule: there must be a final judgment of annulment to
cause donations to be revocable
 Exception: those contracted by spouses between 18 y/o and
below 21. No need for final judgment, absence of parental
consent gives rise to cause or ground for revocation of donation
By reason of legal separation
 Donee acted in bad faith
By reason of compliance with resolutory condition
Resolutory condition
 Condition subsequent
 Has the effect of extinguishing rights already existing upon its
happening
 Obligation subject to resolutory condition is immediately
demandable but extinguished upon happening of the condition
If condition is fulfilled – donor acquires right to revoke the donation
By reason of acts of ingratitude
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 This action is personal to the donor and is not transmissible to his
heirs and neither may this action be brought against the heir of
the donee, unless upon the latter’s death the complaint has been
filed
 Grounds (Art. 765 of NCC)
o Donee commited some offense against the person,
honor, or property of the donor, or of his wife or children
under parental authority
o Donee imputes to donor any criminal offense or any act
involving moral turpitude, unless it has been committed
against the donee himself, his wife or children under his
authority
o Unduly refuses to support donor when donee is legally or
morally bound to do the same
Prescriptive action to revoke
 Revocation by reason of legal separation – 5 years from decree of
legal separation has become final
 Other causes under Art. 86 – FC is silent
o Revocation based on acts of ingratitude – 1 year from the
time the donor had knowledge of the act
o Revocation on other grounds – 10 years from the time
the right of action accrues (Art. 1144 of NCC)
PROHIBITED TRANSACTIONS BETWEEN SPOUSES
Donations during marriage
 General rule: void, whether direct or direct
 Exception: moderate gifts which spouses may give each other on
occasion of family rejoicing
 Prohibition shall also apply to those cohabiting/living together as
husband and wife
Other prohibited transactions
 Prohibition from selling property to each other (void)
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o Exception: separation of property was agreed upon in

marriage settlement; or there has been a judicial
separation of property
 Prohibition from leasing to each other