Common types of property regimes:

1. Absolute Separation of Property (ASP)-all properties of the spouses are separate properties,
except those properties which they may acquire jointly.
2. Conjugal Partnership of Gains – All properties that accrue as fruit of their individual or joint labor
or fruits of their properties during the marriage will be common properties of the spouses.
3. Absolute community of property (ACP) – All present properties owned by the spouses at the
date of celebration of the marriage shall become common properties of the spouses including
future fruit of their separate or joint industry or fruits of their common properties.

Applicable property regime in default of an agreement

In the absence of an agreement or when the regime agreed by the spouses is void, marriages celebrated
before August 3, 1988 shall be governed by the CONJUGAL PARTNERSHIP OF GAINS. Marriages
celebrated starting August 3, 1988 shall be governed by the absolute community of property.

Illustration 1- Mr. and Mrs. Calapan were under the conjugal partnership of gains. Mrs Calapan is a chief
executive officer in a multinational company and she is the breadwinner of the family. Mr. Calapan is
unemployed and taking care of the children at home. During the marriage, Mrs. Calapan acquired
various properties totaling P10,000,000.00 from her salaries. Also during the marragie, Mr. Calapan
discovered a World War II treasure in their backyard worth P100,000,000.00. Mr. Calapan also won
P200,000,000.00 jackpot prize in the PCSO 6/49 Super Lotto.

Fruits of Properties
Illustration 2 – Before their marriage on November 1, 1987, Mr. and Mrs. Negros had properties
respectively and P800,000.00 from their separate labor. Mr. Negros also sold her residential lot for
P5,000,000.00 and invested the entire proceeds in stocks.

Illustration No. 3 – Acquisition by gratuitous title

Spouses Rene and Bebe who were under the congujal partnership of gains had the following properties:
Before Marriage Rene Bebe
1. Donation or inheritance received P100,000.00 150,000.00
2. Income from the Property Donated or Inherited 10,000.00 20,000.00
During Marriage
3. Properties acquired from separate industry or labor 400,000.00 300,000.00
4. Property received by donation or inheritance 800,000.00 500,000.00
5. Income of property from No. 1 and 2 15,000.00 30,000.00
6. Income of property from No. 4 80000 50,000.00

How much is the exclusive and common properties of the spouses.

Illustration NO. 4
Mr. Crocs died. An inventory of the properties of Mr. and Mrs. Crocs is prepared below:
Before Marriage Mr. Crocx Mrs. Crocs Total
Properties inherited before marriage 200,000.00 100,000.00 300,000.00
Other Properties brought into the marriage 400,000.00 500,000.00 900,000.00
Properties During Marriage
Properties inherited during marriage 250,000.00 150,000.00 400,000.00
Properties as fruit of own labor 140,000.00 160,000.00 300,000.00
Properties as fruit of common labor 250,000.00 250,000.00
Fruits
Properties inherited before marriage 100,000.00 50,000.00 150,000.00
Properties inherited during marriage 20,000.00 80,000.00 100,000.00
Properties acquired from own labor 20,000.00 40,000.00 60,000.00
Properties earned from common labor 50,000.00
Compute the Gross Estate of Mr. Crocs.
Absolute Community of Properties (ACP)

Special features of ACP

1. Retrospective feature-Properties brought into the marriage will become common properties. All
properties of the spouses present at the date of celebration of the marriage which they acquired
before marriage will become common properties.
2. Prospective feature-All properties which the spouses may acquire during the marriage from
their separate or joint labor or industry shall be common.

Exclusive Properties
All properties of the spouses are effectively common with the exception of the following which the law
designated as exclusive properties of the spouses:
1. Properties received by way of gratuitous title during the marriage.
2. Fruits of separate properties of the spouses.
3. Properties for the exclusive personal use of either of the spouses, except jewelry.
4. Properties brought into the marriage by either spouse with a descendant by a prior marriage.

Exceptions to prospectivity feature:

1. Properties received by gratuitous title
2. Fruits of separate properties during marriage.

Illustration:

Mr. Ato, a married decedent under the ACP, received the following properties by gratuitous title:
Before Marriage During Marriage
Residential lot-gift to Mr. Ato P2,000,000.00 -
Commercial lot-gift to Mrs. Ato 5,000,000.00
Income of residential lot 400,000.00 800,000.00
Income of commercial lot 1,400,000.00
Income from own labor – Mr. Ato 200,000.00 800,000.00
Income from own labor – Mrs. Ato 300,000.00 800,000.00
Compute the gross estate of Mr. Ato.

Property for exlusively personal use, except jewelry

Properties, acquired before or during the marriage, which are for the exclusive personal use of either of
the spouses are separate properties except jewelry.

Illustration 1 – The concept of exclusive personal use

Mr. and Mrs. Quezon had the following personal properties:
Acquired before marriage Amount
Tuxedo of Mr. Quezon 3,000.00
Wrist watch of Mr. Quezon 2,000.00
Car 800,000.00
Gown of Mrs. Quezon 40,000.00
Acquired during Marriage
Earrings and necklace of Mrs. Quezon 150,000.00
Cellphones 50,000.00
Louis Vuitton bag of Mrs. Quezon 150,000.00
Clothes, shoes, and underwear of Mr. Quezon 60,000.00
Clothes, shoes and underwear of Mrs. Quezon 80,000.00

Illustration 2 – Jewelry
During her marriage, Mrs. Aguilar received a gold bracelet worth P400,000.00 as inheritance from her
grandparents. Using her salaries, Mrs. Aguilar bought P100,000.00 worth of shoes and clothes and a
P200,000.00 ring for her own use. On the other hand, Mr. Aguilar also bought shoes and clothes worth
P70,000.00 and a platinum necklace worth P250,000.00 for his exclusive personal use.
Exception to retrospectivity:
Properties acquired before marriage by a spouse with descendants in a prior marriage.

Illustration 1:
Ms. Beauty Fool, 27 years old, married Don Mario Montero Montemayor Milagroso, a wealthy 65 year
old businessman known for his allias “Mr. 4M.” Mr. 4M had a child with his deceased wife in a prior
marriage. Ms. Beauty brought into the marriage properties totaling P50,000.00. Mr. 4M also brought
into the marriage properties totaling P70,000,00.00. During the marriage, Mr. Beauty accumulated
P300,000.00 from her salaries. Mr. 4M can no longer work at his age so he is totally dependent from the
fruits of his properties. His properties earned P11,000,000.00, during his marriage with Ms. Beauty.

Illustration 2:
Mr. and Mrs. Negros married on January 10, 1990 without agreeing on a property regime. Mr. and Mrs.
Negros brought into their marriage respectively a P1,000,000.00 car and P2,000,000.00 residential lot.
During their marriage, Mr. and Mrs. Negros acquired properties totaling P500,000.00 and P800,000.00,
respectively, from their separate labor. Mrs. Negros also sold her residential lot for P5,000,000.00 and
invested the entire proceeds in stocks.

INTEGRATIVE ILLUSTRATION: ABSOLUTE COMMUNITY OF PROPERTY

Illustration No. 4
Mr. Crocs died. An inventory of the properties of Mr. and Mrs. Crocs who were under the absolute
community of property were as follows:

Before Marriage Mr. Crocx Mrs. Crocs Total

Properties inherited before marriage 200,000.00 100,000.00 300,000.00
Properties for exclusive personal use 50,000.00 60,000.00 110,000.00
Other Properties brought into the marriage 350,000.00 440,000.00 790,000.00
Properties During Marriage
Properties inherited during marriage 250,000.00 150,000.00 400,000.00
Properties as fruit of own labor 140,000.00 160,000.00 300,000.00
Properties acquired for exclusive use 30,000.00 40,000.00 70,000.00
Properties as fruit of common labor 250,000.00 250,000.00
Fruits
Properties inherited before marriage 100,000.00 50,000.00 150,000.00
Properties inherited during marriage 20,000.00 80,000.00 100,000.00
Properties acquired from own labor 20,000.00 40,000.00 60,000.00
Properties earned from common labor 50,000.00
Compute the Gross Estate of Mr. Crocs.