Conjugal Partnership Properties: Liabilities and Obligations, Administration and Dissolution

This is the continuation of the previous post about Conjugal Partnership of Gains.  The properties as a result of the regime of conjugal partnership of gains are conjugal partnership properties.

What are the conjugal partnership of properties?

1.  Those acquired by onerous title during the marriage at the expense of the common fund, whether the acquisition be for the partnership, or for only one of the spouses;

2.  Those obtained from the labor, industry, work or purchase of either or both of the spouses;

3.  The fruits, natural, industrial, or civil, due or received during the marriage from the common property, as well as the net fruits from the exclusive property of each spouse;

4.  The share of either spouse in the hidden treasure which the law awards to the finder or owner of the property where the treasure is found;

5.  Those acquired through occupations such as fishing or hunting;

6.  Livestock existing upon dissolution of the partnership in excess of the number of each kind brought to the marriage by either spouse; and

7.  Those which are acquired by chance, such as winnings from gambling or betting.  However, losses therefrom shall be borne exclusively by the loser-spouse.

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

All property acquired during the marriage, whether acquisition appears to have been made, contracted or registered in the name or both spouses, is PRESUMED to be conjugal unless the contrary is proved.

What is the rule to the property bought by installment?

If full ownership of the property was vested before the marriage, it shall be owned by the buyer spouse or spouses.  However, if the ownership of the property was vested during the marriage, it shall belong to the conjugal partnership.

How about the credit payable to the spouse within a period of time that belongs to the said spouse?

The sums that may be collected during the marriage in partial or by installment on the principal shall be the exclusive property of the spouse.  However, INTERESTS falling due during the marriage on the principal shall belong to the conjugal partnership.

What are the charges upon and obligations of the conjugal partnership?

The conjugal partnership shall be liable for:

1.  The support of the spouse, their common children, and the 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 conjugal partnership of gains, or by both spouses or by one of them 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 conjugal partnership property;

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

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

7.  Antenuptial debts of either spouse 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; and

9.  Expenses of litigation between the spouses unless the suit to be groundless.

Note:  If the conjugal partnership is insufficient to cover the foregoing liabilities, the spouses shall be solidarily liable for the unpaid balance with their separate properties.

What is the rule to the payment of personal debts contracted by the husband or wife before or during the marriage?

The payment of personal debts contracted by the husband or wife before or during the marriage shall not be charged to the conjugal partnership except insofar as they redounded to the benefit of the family.

Who shall administer the conjugal partnership property?

The administration and enjoyment of the conjugal partnership property shall belong to both spouses jointly. 

In case of disagreement whose decision shall prevail?

In case of disagreement, the husband's decision shall prevail, subject to recourse to the court by the wife for proper remedy, which must be availed of within five years from the date of the contract implementing such decision.

In case of the incapacity of one spouse, who shall administer?

In the event that one spouse is incapacitated or otherwise unable to participate in the administration of the conjugal properties, the other spouse may assume SOLE POWERS of administration.  These powers do not include disposition or encumbrance without authority of the court or the written consent of the other spouse.  In the absence of such authority or consent, the disposition or encumbrance shall be VOID.

How may the conjugal partnership regime be terminated?

The conjugal partnership terminates:

1.  Upon the death of either spouse;

2.  When there is a decree of legal separation; 

3.  When the marriage is annulled or declared void; or

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

What is the effect to the separation in fact of the spouses?

The separation in fact between husband and wife shall not affect the regime of conjugal partnership, except that:

1.  The spouse who leaves the conjugal home or refuses to live therein, without just cause, shall not have the right to be supported;

2.  When the consent of one spouse to any transaction of the other is required by law, judicial authorization shall be obtained in a summary proceeding;

3.  In the absence of sufficient conjugal partnership property, the separate property of both spouses shall be solidarily liable for the support of the family.

Source:  The Family Code of the Philippines