bance notes on property relations art. 88 - art. 136

7/26/2019 Bance Notes on Property Relations Art. 88 - Art. 136

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Chapter 3System of Absolute Community

Section 1. General Provisions

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Special Type of Co-ownershipThe absolute community of property is a special type of co-ownership. As such:

1.

Each of the spouses may use the thing owned in common provided he or she does so in accordance withthe purpose for which it is intended and in such a way as not to injure the interest of the co-ownership ofprevent the other co-owners from using it according to their rights. (Art. 486, NCC)

2.

Any one of the co-owners may br ing an action for ejectment. (Art. 487, NCC)

[Note] As such, any one of the spouses may file an action for ejectment, and the same will prosper even if theother spouse did not participate as one of the injured party.

Not like an ordinary co-ownership, no waiver of rightsThere shall be no waiver of rights, interest, shares and effects of the absolute community of property during

the marriage except in case of judicial separation of property. This is because the interest of the parties are merelyinchoate.

Inchoate an expectancy prior to liquidation.

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Property from Previous MarriageThe law uses the term descendants so it does not only mean children but includes, grandchildren, great-

grandchildren and all other descendants. Likewise, the descendants must be legitimate.

Scenarios:1. If the first marriage is void by reason of the spouses being first degree cousins, and the husband marries

again, his share of liquidated properties in the first marriage shall belong to the absolute community in the

second marriage even if there are descendants to the first marriage. Since these descendants areillegitimate for being born in a void marriage, they are not entitled to this.

2. If the first marriage is void by reason of Art. 36 or void because of Art. 40 in relation to Art. 52 and 53, thechildren are legitimate and as such, the properties in the first marriage shall be separate properties of thespouse who remarries.

3. If the first marriage is terminated by death and there is no liquidation of the property regime of the firstmarriage, the subsequent marriage shall be governed by the complete separation of property regime.

4. If the first marriage is terminated by death and there is liquidation of the property regime, the subsequentmarriage shall be governed by the absolute community of property.

5.

If the first marriage is terminated by death and there is liquidation of the property regime but one of thecontracting spouse has legitimate descendants in the first marriage, the properties in the first marriageshall be the separate properties of the said contracting spouse as provided in Art. 92, even if the propertyregime that governs the second marriage is one of absolute community of property.

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[Note] Minor or ordinary repairs - are such as are required by the wear and tear due to the natural use of thething and are indispensable for its preservation.

Major or extra-ordinary repairs are those caused by abnormal or exceptional circumstances and are not neededfor the preservation or those caused by natural use but not needed for preservation.

Taxes, Expenses for Preservation of Separate Property

Charges against the community property are allowed because they are for the preservation of property whichwill benefit the family. The preservation does not involve major repairs but only minor ones. If the property needs majorrepairs, although used by the family, it is the owner-spouse who should shoulder the expenses therefore considering thathe or she has the greatest interest to conserve it being the owner thereof.

Expenses or Donation for Self-ImprovementExpenses or donation for self-improvement are within the ambit of support for which the absolute community

of property is likewise liable. The donation to common children must be made by both spouses, if only one of the spousesdonate, this may fall under the prohibition under Art. 87 making donations between the spouses, direct or indirect, void.Except moderate gifts which the spouses may give each other on the occasion of any family rejoicing.

[Note] A donation by one spouse to a common child who has no descendants or compulsory heir other than hisor her parents is an indirect donation to the other spouse.

Antenuptial Debts of Either Spouse

The general rule: Debts incurred before the marriage by either spouse as a rule must be paid by the separateproperty alone of said spouse.

Except: when the indebtedness has redounded to the benefit of the family and only up to the extent of thebenefits received.

Example: A prospective husband borrowed money from a bank to buy a house for the family and the housebecame a community property after the marriage pursuant to the marriage settlement, the community property is liableto the extent of the amount used in the purchase of the house.

Advances made by the Community Property for Acts for which it is not Originally L iableThe community property shall advance for:(a) antenuptial debts which did not benefit the family;(b)

support of illegitimate children of either spouse;(c) liabilities incurred by reason of a crime or quasi-delict, if and when the debtor-spouse has no exclusive

property or if the same is insufficient for the payment of the foregoing obligations.

Liabilities Incurred by Reason of Crime or Quasi-DelictGeneral rule: The absolute community of property shall not be liable to pay the obligation or debt arising from

crime or quasi-delict of a particular spouse. The separate property of the erring spouse shall be liable.

Except: in case of absence or insufficiency of the exclusive property of the debtor spouse, the absolutecommunity of property shall pay but such payments shall be considered as advances to be deducted from the share ofthe debtor spouse upon liquidation of the community.

Litigation Expenses

If there are cases between spouses, the expenses incurred thereby shall be chargeable to community propertyexcept when the suit is groundless. Examples of these are:

(a)

legal separation,(b) annulment of marriage

(c)

judicial separation of property(d)

exclusive administration of the community property(e)

support and custody of children.

/Case/ The legal expenses of the wife in a criminal suit against her brought by her husband for adultery may becharged to the community property as defending herself in a criminal case for adultery was as necessary as a claim forsupport, inasmuch as the right to a good name and reputation and the right to personal liberty are, at least, as vital anddeserving of protection as the right to existence which is, in the last analysis, the meaning of the right to support. Sevavs. Nolan


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Solidary obligationsSolidary obligations are those where several creditors or debtors or both concur, and where each creditor has

the right to demand and each debtor is bound to perform, in its entirety, the prestation constituting the object of theobligation.

Ex. In an ordinary contract, if two debtors solidarily owe a creditor an amount of money, the creditor maydemand payment from both debtors, or he may choose to ask payment from anyone of the debtors. In both cases, thecreditor can ask for the full amount of the obligation, not only the part constituting the share of each of the debtors with

respect to the debt.

Solidary liability of spouses

In the event that the community assets are not sufficient to pay the foregoing liabilities, except par. 9, thespouses shall be solidarily liable for the unpaid balance with their separate properties. Creditors are thus doubly securedfirst from the community property and second from the separate properties. On the second, they may pursue their fullclaims against any one of the spouses, the liability being solidary (Art. 1216, NCC). But the spouse who paid the entireobligation is entitled to a corresponding reimbursement from the other (Art. 1217, NCC).

Spouses are not solidarily liable for:The solidary liability of the spouses do not include:(a) antenuptial debts not redounding to the benefit of the family;(b)

the support of illegitimate children by either spouse;(c)

and liabilities incurred by reason of a crime or quasi-delict;

Insolvency of Spouses

So long as the absolute community subsists, its property shall not be among the assets to be taken possessionof by the assignee for the payment of the insolvent debtors obligations, except insofar as the latter have redounded tothe benefit of the family.

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Joint administration and enjoyment highlight the fact that the spouses are co-owners of the properties theyintroduced into the marriage and acquired thereafter. However, the administration may be validly delegated to only onespouse in a marriage settlement executed prior to the marriage.

Joint administration or management does not require that the husband and the wife always acts together. Eachspouse may validly exercise full power of management alone, subject to the intervention of the court in proper case. Eachspouse may act individually, even without the consent of the other.

Decision of Husband shall PrevailShould there be any disagreement in any matter involving the administration and enjoyment of the community

property between the spouses, the decision of the husband shall prevail in order that a void or a vacuum will not arise. Itis the husbands decision which shall temporarily prevail because tradition and experience show that, in very seriousmatters concerning the family, it is usually the husband who makes the ultimate choices. The judicial proceeding shall besummary in nature pursuant to Article 253 of the Family Code.

[Note] If it is the husband who does not give his consent or refuses to the undertaking, the wife may go to thecourts for adequate relief. If the wife despite the disagreement still pursues the same, the husband can go to court foradequate relief.

Effect of Alienation and Encumbrance

1. If disposition was made completely without the knowledge and consent of one spouse, the following shall beits effects:

a. the contract shall be null and void. Vda. De Ramones vs Agbayanib. the action to nullify the contract will not have any prescriptive period.

[Note] There are however instances when a third-party purchaser is protected by law. If the TCT indicates thatthe seller is single when in fact he is married and therefore governed by the absolute community of property, the sale ofsaid property by the registered owner to the third person, who is an innocent purchaser-for-value and who in good faithrelies on what is officially annotated in the TCT, the sale cannot be voided. PNB vs Court of Appeals

2. If the disposition was with the knowledge but without the consent of the other spouse, the following shall beits effects:

a. The contract entered into by the husband, whose decisions will prevail in cases of disagreement, shall notbe considered void but merely annullable at the instance of the wife.

b.

The wife shall have five years from the date of the contract implementing the decision to go to court toseek a proper remedy which includes the annulment of the contract.

c. However, if the wife ratifies the contract by any express or implied act, she cannot seek the annulment ofthe contract even within the 5-year prescriptive period. In this case, the contract shall be deemed nothave suffered from any legal infirmity and would be considered effective as of the time the contract wasentered into.

[Note] The law clearly provides that the wife has the right to nullify or annul, as the case may be, not only hershare in the property involved but the entire contract itself.

Proper Remedy; Judicial Guardianship vs Sole Administrator Proceeding

In case one of the spouses is incapacitated or otherwise unable to participate in the administration of thecommon properties, the other spouse may assume sole powers of administration. The appointment of the spouse as thesole administrator shall be in a summary proceeding under Art. 253 of the Family Code if it involves:

(a) absent(b) separated in fact(c)

abandoned the other(d) consent is withheld

If the subject is an incompetent who is in a comatose or semi-comatose condition, a victim of stroke,cerebrovascular accident, without motor and mental faculties, and with diagnosis of brain stem infarct, the proper remedy

is a judicial guardianship proceeding under the Rules of Court.

Limitations on Sole Administratorship

The spouse who assumed such power of administration cannot dispose or encumber property without judicialapproval or the written consent of the incapacitated spouse. Otherwise, any contract of encumbrance, disposition oralienation shall be considered void.

Continuing Offer, ConceptThe only legal significance of such a void transaction is to treat the same as a continuing offer on the part of

the consenting spouse and the third person. The contract may be perfected by the acceptance of the other spouse or by


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authorization of the court before the offer is withdrawn by either or both offerors. The effectivity of the contract shall takeeffect only upon such written acceptance or court authorization.

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Disposition by WillA will is an act whereby a person is permitted, with the formalities prescribed by law, to control to a certain

degree the disposition of his estate, to take effect after his death. A testator can provide that certain properties after his

or her death will go to whoever he or she wishes the property will go, provided that the grant will not encroach on thelawful legitimes of his compulsory heirs.

A legitime is that part of the testators property which cannot be disposed of because the law has reserved itfor certain heirs who are therefore called compulsory heirs.

Hence, a spouse can validly dispose any of his or her specific separate properties in a will provided it will notinfringe on the legitime of the compulsory heirs. However, considering that an absolute community of property is a co-ownership, the spouse can only dispose his or her interest in the community property and not in a specific property.

Disposition by Will, Why it does not Violate Art. 89 on Waivers during MarriageDisposition made in a will of an interest in the community property cannot be considered a waiver of such

interest which is prohibited under Art. 89. The act of disposition precisely highlights the testators intent to control theproperty to take effect after death.

Only interest, not specific properties

What is allowed to be disposed of is not specific property in the absolute community but only the interesttherein. The reason for this being that until the liquidation of the absolute community, it is not known what propertyremains and which ones shall be adjudicated to the individual spouses.

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Legal Separation DecreeThe effect of a decree of legal separation is the that the absolute community of property or the conjugal

partnership shall be dissolved and liquidated but the offending spouse shall have no right to any share of the net profitsearned by the absolute community or the conjugal partnership, which shall be forfeited in favor of the common children,or the children of the guilty spouse by a previous marriage, or in default of children, the innocent spouse in accordancewith Art. 43 (2). If the parties reconcile however, they may choose to revive the property regime subject to provisions ofArt. 67.

Annulment DecreeAs a consequence of an annulment decree, the absolute community of property shall be dissolved and

liquidated, but if either of the spouses acted in bad faith, his or her share shall be forfeited in favor of:(a)

common children(b) children of the guilty spouse by a previous marriage(c) innocent spouse (Art. 43, par. 2)

Nullity DecreeGeneral rule: There is no absolute community of property in a void marriage. The property arrangement

described in either Art. 47 or Art. 48 governs a void marriage.

Art. 147 is applicable where a man and a woman who are capacitated to marry each other, live exclusive ly witheach other as husband and wife without the benefit of marriage or under a void marriage. It shall be liquidated inaccordance with the rules on co-ownership and not under Art. 102 of the Family Code dealing with the absolutecommunity of property.

However, when only one of the parties is in good faith, the share of the party in bad faith in the co-ownership shall be forfeited in favor of their common children or their descendants, each vacant share shallbelong to the respective surviving descendants. In the absence of descendants, such share shall belong to theinnocent party.

Art. 148 will apply in case of a void marriage not falling under Art. 147 even if both parties are in bad faith.

The Special CaseAn absolute community of property or conjugal partnership of gains could govern a void marriage when it is a

subsequent void marriage because of non-observance of Article 40. Upon the declaration of nullity of the subsequentmarriage, Article 50 of the Family Code sets in which provides that marriages which are declared void ab initio by finaljudgment under Article 40 are subject to Art. 43 (2) the dissolution of the absolute community of property and theforfeiture procedure. Thus, a subsequent void marriage by reason of Art. 40 follows Art. 50, not Art. 147.

Judicial Separation of PropertyJudicial separation of property may be voluntary or involuntary.

1. If voluntary, the parties can file the agreement for separation of property in court to obtain the necessarycourt approval. After approval, the parties can nevertheless file a revival of their property regime but oncerevived, no voluntary separation of property may thereafter be granted [Art. 141 (7)].

2.

If involuntary, it must be fore the sufficient causes provided in Art. 135 of the Family Code which are:a) That the spouse of the petitioner has been sentenced to a penalty which carries with it civil

interdiction;b)

That the spouse of the petitioner has been judicially declared an absentee;c) That loss of parental authority of the spouse of petitioner has been declared by the court;d) That the spouse of the petitioner has abandoned the latter or failed to comply with his or her

obligations to the family as provided in Article 101;e) That the spouse granted the power of administration in the marriage settlements has abused

that power; andf)

That at the time of the petition, the spouses have been separated in fact for at least one yearand reconciliation is highly improbable.

Liquidation After Affidavit of ReappearanceThe reappearance of an absentee spouse or a spouse judicially declared dead has the effect of terminating the

subsequent marriage and as such, the community property or the conjugal property.

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A receiver is an officer appointed by a court to assume the custody and control of property, and to preserveand sequester the same, pending litigation concerning its disposal.

Failure to Comply with Family ObligationsIf either of the spouses fails to comply with his or her obligations to the family, whether marital, parental or

property relationships, the other spouse may file relief.

[Note] For abuse to exist, it is not enough that the husband performs an act or acts prejudicial to the wife. Nor

is it sufficient that he commits act injurious to the partnership, for these may be the result of mere inefficient or negligentadministration. Abuse connotes willful and utter disregard of the interest of the partnership, evidenced by a repetition ofdeliberate acts and/or omissions prejudicial to the latter. Dela Cruz vs Dela Cruz

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These properties are those stipulated in the marriage settlements as exclusive or even during

the marriage and the three statutory exclusions in Art. 92.

4. Partition of net assets

Equal division of the net assets, unless a different proportion or division has been agreed uponin the marriage settlement or unless a valid waiver has been made.

For a waiver to be valid, it must be made upon a judicial separation of property or after themarriage has been dissolved or annulled and it must be contained in a public instrument.

In annulment and legal separation, the spouse who is in bad faith shall forfeit his/her share inthe net profits in favor of the common children, or the children of the guilty spouse, or theinnocent spouse.

In case of a void marriage that is governed by Art. 147, the share (meaning all of it and not justthe net profit) of the party in bad faith shall be forfeited in favor of (1) the common children ortheir descendants, or (2) the innocent party.

Net Profits = Market Value of the Community Propert at the time of Dissolution Market Value of theCommunity Property at the celebration of marriage

5.

Delivery of the presumptive legitimes Delivery of the presumptive legitimes is only made after the finality of a judicial decree of

annulment on grounds provided in Art. 45 or of nullity of a subsequent void marriage under Art.40 in relation to Articles 52 and 53.

Delivery of the presumptive legitimes is made only in termination of marriage either byannulment or nullity judgment in accordance with Art. 51.

6. Adjudication of the conjugal dwelling Unless otherwise agreed upon by the parties (in the marriage settlement or during

adjudication), the conjugal dwelling and the lot on which it is situated shall belong to the spousewith whom majority of the children choose to remain.

A child below 7 years old is deemed to have chosen the mother, unless the court has decided

otherwise.

If there is no such majority, the court shall decide, taking into consideration the best interests ofthe said children.

Net Assets vs Net ProfitsNet assets constitutes the net remainder of the community of conjugal property after payment of debts and

obligations of the community or conjugal property.

Net profits constitute the increase in value between the market value of the community property at the time ofthe celebration of marriage and the market value at the time of dissolution.

[Note] It must be understood that debts and obligations must have been paid first and that there is still aremainder before any net profits could be considered.

Forfeiture of Net Profits

Article 43 (in relation to Article 50 detailing effects for voidable marriages) and Article 63 (Effects of Decree oflegal separation) provides for forfeiture of shares in the net profits, and not the capital of a spouse who acted in badfaith.

However, Art. 147 and 148 (unions without marriage) mention also forfeitures when a partner acted in badfaith but what is to be forfeited is not net profit but the share of the errant partner in the co-ownership.

Judicial Intervention in Adjudication of Conjugal DwellingThe mother is accorded primary importance in considering children below seven years based on the truism that

the mothers care and affection for the child during its tender years are acceptedly needed more than that of the father.

Except: When the court finds that there is a valid reason for separating the child from the mother. As such, amother who was found to have committed and subsequently convicted of adultery is unfit to be a mother and leaving thecustody of the children to their grandmother. (Cortes vs Castillo)

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Prior to the liquidation and partition, the interest of an heir in the estate of the deceased person maynevertheless be attached for purposes of execution, even if the estate is in the process of settlement beforecourt. (De Borja vs De Borja)

[Important] It is only after liquidation that definable property can be claimed by and adjudged to them fromthe remainder of their properties after satisfaction of all the obligations which the community property has topay. Thus, specified and concrete properties cannot be donated by any co-heir prior to liquidation and partition.

(Hagosojos vs Court of Appeals)

Claim against the Estate

No complaint for the collection of indebtedness chargeable to the community or conjugal properties can bebought against the surviving spouse, unless such surviving spouse has committed himself or herself to be solidarily liablefor the claim against the absolute community or the conjugal partnership property.

If the claim is brought against the surviving spouse who did not commit himself or herself to be solidarilyliable, and a judgment is rendered is void. This is because all debts chargeable to the community or conjugal property,which has already been dissolved, must therefore be claimed and paid in the settlement of estate proceedings of thedeceased spouse. The reason for this is that upon the death of one spouse, the powers of administration of the survivingspouse ceases and is passed to the administrator appointed by the court having jurisdiction over the settlement of estate.

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(1)

death of either spouse;(2) decree of legal separation;(3) annulment or nullity(4)

judicial separation ofproperty during marriage

(1)

death;(2) insolvency;(3) civil interdiction;(4)

termination of the term;(5) express will of any partner;(6) other provisions in NCC

7. Liquidation of Net Gains No liquidation until the partnership isdissolved.

Liquidation may be made withoutdissolution of partnership.

Nature of Interest in the Partnership

The interest of each spouse in the conjugal partnership property is merely inchoate or a mere expentancy untilthe liquidation. Hence, the interest of a spouse in the conjugal partnership cannot be attached or sold on execution as itis a mere expentancy and constitutes neither legal nor an equitable estate and does not ripe into title until it appears thatthere are assets in the community after liquidaion and settlement.

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2. If the property is asserted as a separate property and a title has been issued under the name of thespouse asserting the same and acts have been undertaken clearly indicating that the property is separateand the other spouse did not promptly oppose the acts of dominion of said spouse, the other spousecannot belatedly claim the conjugal nature of the disputed property. (PNB vs Court of Appeals)

3.

Even if the property was bought before the marriage and was only registered under the name of theowner-spouse and together with the other spouse as co-owner, the said property is still the exclusiveproperty of the spouse who bought it by his or her exclusive fund. The registration after the marriage ofthe certificate of title under the co-ownership to both spouses only creates a trust, thus the restoration to

the real owner-spouse of the subject property upon liquidation. (Plata vs Yatco)

Purpose of Exclusive Properties Brought to the Marriage

These exclusive properties shall be principally used for the (1) payment of personal debts, not redounding tothe benefit of the family, contracted by the owner-spouse before the marriage; (2) fine and indemnities imposed uponthe owner-spouse; and (3) support of illegitimate children of the owner-spouse.Acquired by Gratuitous Title

Anything received by each spouse from any source by way of an act of liberality of the giver, such as adonation or gift, shall belong exclusively to the spouse-recipient and will not belong to the conjugal partnership property.Under this category fall acquisitions through:

a. Succession mode of acquisition wherein property, rights and obligations of a person are transmittedthrough his death to another or to others by his will or by operations of law.

b.

Devise and/or legacy are gifts of real and personal property which are respectively given by virtue of awill.

c. Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of

another who accepts itd. Gratuitye. Remission or condonation is essentially gratuitous, and requires the acceptance of the obligor.f.

Free patentg. other modes wherein no recompense is involved.

As such:1.

Proceeds from the insurance policy secured by the husband made payable to the wife as beneficiary isseparate property of the wife. (Gercio vs Sun Life Assurance)

2. Death benefits, though in the nature of insurance, do not form part of the conjugal partnership because it

is not obtained during the marriage but precisely after its dissolution. (Lavides vs Flores)3. Unearned increment is an acquisition by gratuitous title for it is the increase in the value of a property

without any effort, labor or industry exerted, nor any investment of conjugal assets or funds.4.

Loans through mortgage by the wife using her separate property as security makes the loan her separateproperty. (Lim Queco vs Ramirez)

5. If the loan is obtained using the spouses separate property with the consent of the latter and the loanconstituted a charge on the conjugal partnership, the loan is conjugal. (Palanca vs Smith, Bell andCompany)

6. Property acquired by succession even if it was before or after the marriageis a separate property of therecipient-spouse. (Villanueva vs IAC)

[Note] In the conjugal partnership, the income and fruits of the property acquired by gratuitous title form partof the conjugal property. The law does not include fruits and income of property received by gratuitous title as separateproperty, unlike that in absolute community of property.

Redemption, Barter, Exchange

a. Redemption The property shall belong to the spouse who has the right to redeem regardless of whether or not he or

she uses personal funds. However, if conjugal funds were used to effect the redemption, the wife shallreimburse the conjugal fund. (Santos vs Bartolome)

In the absence of proof that the right of redemption pertained to any of the spouses it shall beconstrued to form part of the conjugal partnership. (Zulueta vs Pan American World Airways, Inc.)

b. Barter/ Exchange

Barter one person transfers to another the ownership of non-fungible things with the obligation on thepart of the latter to give things of the same kind, quantity and quality. The new property shall still bethe exclusive property of the owner-spouse who bartered/parted with his/her exclusive property.

Purchased with Exclusive Money


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Property purchased using the exclusive money of one spouse shall belong to such spouse, except when: -property is registered to both spouses. As such, it should be determined whether it shall result in a gift from one spousewhose money was used to effect the purchase, or a trust in favor of such spouse.

The controlling factor is the source of the money used, or the money promised to be paid.

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Accretion Rules in Properties Left by WillThe rule: in order for accretion to apply in a property left by will, it shall be necessary:1.

That the husband and wife are called to the same inheritance or to the same portion thereof pro indiviso2. One of the spouses dies before the testator or renounces the inheritance or incapacitated to receive it.

(Art. 1016)

[Note] Even though the will provides for a designation (ex. !, etc.), the same does not make the designationdivisible. It is still pro indivisosince it only provides for proportionate sharing and does not make the properties specific.

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[Note] Before the presumption attaches however, it is imperative that proof of acquisition during the marriagebe presented. As such:

1. Registration of property is not proof of acquisition as the property may have been acquired prior to themarriage but only registered after the ceremony. (Metropolitan Bank and Trust Company vs Tan)

2.

Proof consisting of tax declaration in the name of one of the spouses obtained during the marriage is notsufficient proof to give rise to the presumption that the property is conjugal (Pintiano-Anno vs Anno)

[Note] There is a confidential relation between the husband and wife that as such, because of the feelings oftrust existing between them, certificates of titles are often secured in the name of both or either, regardless of the trueownership of the property and regardless of the source of the purchase money. It is thus but fair that on liquidation ofthe partnership, the trust should be recognized and enforced, so that the real ownership of the property may beestablished.

In case of de facto separationThe presumption of conjugality applies even though the spouses are living separately. (Wong vs IAC)

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Property bought on Installment Basis if Partly Paid from Mixed Funds, OwnershipThe determinative factor in considering the ownership of the property is the time when full ownership is vested.

If it was vested before the marriage, the owner is the buyer-spouse or both of them as the case may be; if it was vestedduring the marriage, the conjugal partnership is the owner. However, any amount advanced by the partnership or byeither or both of them shall be reimbursed by the owner or owners upon liquidation of the partnership.

Property bought during the Marriage, Mixed Funds

In Castillo Jr vs Pascowhere a property was bought with the paraphernal funds and partly with conjugal funds,the Court held that the property belongs to both patrimonies in common, in proportion to their contributions to the totalpurchase price.

[Note] Sta. Maria however submits that it should have been declared as part of the conjugal partnership in linewith the policy of the state in creating a unified ownership of properties between husband and wife during the marriage,subject to reimbursement.

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Simultaneous LiquidationThe subsequent partnership cannot be liquidated without the liquidation of the prior one.

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Civil interdiction deprives the offender during the time of his sentence of the rights of parental authority orguardianship, either to the person or property of any ward, of marital authority, of the right to manage his property andof the right to dispose of such property by any act of any conveyance inter vivos.

Declaration of AbsenceWhen is an absentee declared as such:

Two years having elapsed without any news about the absentee or since the receipt of the last news,and five years in case the absentee has left a person in charge of the administration, his absence

may be declared. (Art. 384 of the Civil Code)

Who may institute an action for judicial declaration of absence:

The spouse present The heirs instituted in a will who may present an authentic copy of the same; The relatives who may succeed by law of intestacy

Those who may have some right to a property of the absentee subordinated to the condition of hisdeath. (Art. 385)

The judicial declaration of absence shall not take effect until six months after its publication in a newspaper ofgeneral circulation. (Art. 386)

Loss of Parental AuthorityLoss of parental authority here refers to the loss of parental authority of the spouse of petitioner over their

common children or over the child of the spouse of the petitioner with another person.

Grounds for Termination of Parental AuthorityThe loss of parental authority should indicate malice, abuse, bad faith or culpable negligence on the part of the

petitioner.Ex. If a spouse sexually abuses his or her child.

Abuse of AdministrationFor abuse to exist, it is not enough that the spouse granted the power of administration performs an act or acts

prejudicial to the other spouse. Nor is it sufficient that he or she commits acts injurious to the community of property orconjugal partnership property, for these may be the result of mere inefficient or negligent administration.

Abuse connotes willful and utter disregard of the interests of the partnership, evidenced by a repetition ofdeliberate acts and/or omissions prejudicial to the latter. (De la Cruz vs De la Cruz)

Separation in FactAt the time of the petition, the spouses must have been (a) separated for at least one year; and (b)

reconciliation is highly improbable.

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bance notes on property relations art. 88 - art. 136

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