System of Absolute Community of Property

For all those who have not signed any pre-nuptial agreement or marriage settlement to choose any property regime that would govern their property relations, this system of absolute community of property would definitely suit you.  Of course,  nothing and nobody bars any future couple to choose this kind of regime.

To give an overview on what this system is all about, this post is for you to read on.

What is the system of absolute community?

 

This is one of the regimes or systems of property relations between the spouses and the default system in the absence of a prenuptial agreement or when the agreed system is null and void. This system commences at the precise moment that the marriage is celebrated, and any stipulation for the commencement of the community regime at any other time is void.

In a nutshell, the husband and the wife are considered as co-owners of all properties they bring into the marriage (those that they owned before the marriage), as well as the properties acquired during the marriage, except for certain properties express excluded by law. The rules on co-ownership applies in all matters not provided under the Family Code. (http://jlp-law.com/blog/system-of-absolute-community-property-relations-in-marriage/)

When does it commence?

The absolute community of property between spouses shall commence at the precise moment that the marriage is celebrated.  Any stipulation, express or implied, for the commencement of the community regime at any other time shall be VOID.

What governs the absolute community of property?

The provisions on CO-OWNERSHIP shall apply to the absolute community of property between the spouses in all matters not provided by the Family Code of the Philippines.

What constitutes community property?

Unless otherwise provided in the Family Code or in the marriage settlement, the community property shall consist of all the property owned by the spouses at the time of the celebration of the marriage or acquired thereafter.

What are EXCLUDED to the community property?

1.  Property acquired during the marriage by GRATUITOUS TITLE by either spouse, and the fruits as well as the income thereof, if any, unless it is expressly provided by the donor, testator or grantor that they shall form part of the community property.

2.  Property of PERSONAL AND EXCLUSIVE USE of either spouse.  However, JEWELRY shall form part of the community property.

3.  Property acquired BEFORE THE MARRIAGE by either spouse who has legitimate descendants by a former marriage, and the fruits as well as the income, if any, of such property.

What is the presumption to the property acquired during the marriage?

Property acquired during the marriage is PRESUMED to belong to the community, unless it is proved that it is one of those excluded therefrom. 

What are the charges upon and obligations of the absolute community?

The absolute community of property shall be liable for:

1.  The support of the spouse, their common children, and legitimate children of either spouse; however the support of illegitimate children shall be governed by the provisions on support.

2.  All debts and obligations contracted during the marriage by the designated administrator-spouse for the benefit of the community, or by both spouses, or by one spouse with the consent of the other.

3.  Debts and obligations contracted by either spouse without the consent of the other to the extent that the family may have been benefited.

4.  All taxes, liens, charges and expenses, including major or minor repairs, upon the community property.

5.  All taxes and expenses for mere preservation made during marriage upon the separate property of either spouse used by the family.

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

7.  Antenuptial debts of either insofar as they have redounded to the benefit of the family.

8.  The value of what is donated or promised by both spouses in favor of their common legitimate children for the exclusive purpose of commencing or completing a professional or vocational course or other activity for self-improvement.

9.  Antenuptial debts of either spouse other than those falling under paragraph 7, the support of illegitimate children of either spouse, and liabilities incurred by either spouse by reason of a crime or quasi-delict, in case of absence or insufficiency of the exclusive property of the debtor-spouse, the payment of which shall be considered as advances to be deducted from the share of the debtor-spouse upon liquidation of the community.

10.  Expenses of litigation between the spouses unless the suit is found to be groundless.

Who would shoulder the loss in any game of chance?

Whatever may be lost during the marriage in any given of chance, betting, sweepstakes, or any other kind of gambling, whether permitted or prohibited by law, shall be borne by the loser and shall not be charged to the community but any winnings therefrom shall form part of the community property.

When is this absolute community terminated?

The absolute community terminates:

a.  Upon the death of either spouse

b.  When there is a decree of legal separation

c.  When the marriage is annulled or declared void.

d.  In case of judicial separation of property during the marriage provided by law.

What is the effect in separation in fact between husband and wife?

The separation in fact between husband and wife shall not affect the regime of absolute community except that the spouse who leaved the conjugal home or refuses to live therein, without just cause, shall not have the right to be supported, among others.

Source:  Family Code of the Philippines