Wednesday, July 5, 2017

Articles 88 to 148, Family Code of the Philippines PART I
Lecture No. 5

CIVIL LAW REVIEW I LECTURE SERIES
            Articles 88 to 148, Family Code of the Philippines
For: University of San Agustin School of Law
General Luna Street, Iloilo City
SY 2017-2018, 1st Semester
By: Atty. Eduardo T. Reyes, III


Chapter 3. System of Absolute Community
Section 1. General Provisions

Art. 88. 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. (145a)

Art. 89. No waiver of rights, shares and effects of the absolute community of property during the marriage can be made except in case of judicial separation of property.

When the waiver takes place upon a judicial separation of property, or after the marriage has been dissolved or annulled, the same shall appear in a public instrument and shall be recorded as provided in Article 77. The creditors of the spouse who made such waiver may petition the court to rescind the waiver to the extent of the amount sufficient to cover the amount of their credits. (146a)

Art. 90. The provisions on co-ownership shall apply to the absolute community of property between the spouses in all matters not provided for in this Chapter. (n)

Section 2. What Constitutes Community Property

Art. 91. Unless otherwise provided in this Chapter or in the marriage settlements, 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. (197a)

Comment:

1. See Article 1782, New Civil Code. “Persons who are prohibited from giving each other any donation or advantage cannot enter into universal partnership.”

Art. 1777- “A universal partnership may refer to all the present property or to all the profits”.

v “Partnership Between Husband and Wife. – There is a clear division among writers on whether husband and wife can enter into a partnership with each other. Those who believe that they cannot, maintain that the same principle which forbids donations and sales by one to the other also invalidates a partnership between them. The better view, however, which is more in consonance with the principles of our new Code emancipating married women, is that such partnership is perfectly valid, so long as it does not violate fundamental provisions on conjugal partnerships, and so long as the partnership is not universal, for this is prohibited by Article 1782”[1].

Art. 92. The following shall be excluded from 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 for 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. (201a)

Comment:

a. Compared with Exclusions from Conjugal Partnership of Gains

Absolute Community of Property
Conjugal Partnership of Gains
(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 for 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. (201a)
(1) That which is brought to the marriage as his or her own;
(2) That which each acquires during the marriage by gratuitous title;
(3) That which is acquired by right of redemption, by barter or by exchange with property belonging to only one of the spouses; and
(4) That which is purchased with exclusive money of the wife or of the husband. (148a)

1. “Gratuitous title” applies to both. Presumed that the donor or grantor, knowing that one spouse is married still conveys gratuitously in favour of only one spouse, then the intention becomes unequivocal that the grant is only in favour of one spouse.

2. “Legitimate descendants by a former marriage”. Recall Article 54 Family Code. “Children conceived or born before the judgment of annulment or absolute nullity of the marriage under Article 36 has become final and executory, shall be considered legitimate. Children conceived or born of the subsequent marriage under Article 53 shall likewise be legitimate”.

3. Hypothetical. During the marriage, X, the husband, was bestowed a Deed of Donation involving a brand new Toyota Prius from his own parents because they disliked Y, his wife. Since the donation is by “gratuitous title”, the Toyota Prius is considered as separate property of X. Now, what if subsequently, X sells the Toyota Prius and from the proceeds therefrom, buys a Toyota Camry. Is the Toyota Camry common or exclusive property?

            3.1. What if X barters or exchanges the Toyota Prius with a Toyota Camry of his friend?     
XOXO

Art. 93. Property acquired during the marriage is presumed to belong to the community, unless it is proved that it is one of those excluded therefrom. (160)

Section 3. Charges and Obligations of the Absolute Community

Art. 94. The absolute community of property shall be liable for:

(1) The support of the spouses, their common children, and legitimate children of either spouse; however, the support of illegitimate children shall be governed by the provisions of this Code 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 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;
(9) Antenuptial debts of either spouse other than those falling under paragraph (7) of this Article, the support of illegitimate children of either spouse, and liabilities incurred by either spouse by reason of a crime or a 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; and
(10) Expenses of litigation between the spouses unless the suit is found to be groundless.
If the community property is insufficient to cover the foregoing liabilities, except those falling under paragraph (9), the spouses shall be solidarily liable for the unpaid balance with their separate properties. (161a, 162a, 163a, 202a-205a)




Comments:

a. Distinctions as to Charges and Obligations

Absolute Community of Property (Art. 94)
Conjugal Partnership of Gains (Art. 121)

(1) The support of the spouses, their common children, and legitimate children of either spouse; however, the support of illegitimate children shall be governed by the provisions of this Code 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 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;
(9) Antenuptial debts of either spouse other than those falling under paragraph (7) of this Article, the support of illegitimate children of either spouse, and liabilities incurred by either spouse by reason of a crime or a 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; and
(10) Expenses of litigation between the spouses unless the suit is found to be groundless.
If the community property is insufficient to cover the foregoing liabilities, except those falling under paragraph (9), the spouses shall be solidarily liable for the unpaid balance with their separate properties. (161a, 162a, 163a, 202a-205a)


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 of this Code 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 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 either 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 is found to groundless.
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. (161a)

1. Only para. 9 of Art. 94 does not have a counterpart provision. Instead, it is in Art. 122 that personal debts and liabilities of a spouse in a regime of conjugal partnership of gains can be found. Thus,

Absolute Community of Property (Par. 9, Art. 94)
Conjugal Partnership of Gains (Art. 122)

 (9) Antenuptial debts of either spouse other than those falling under paragraph (7) of this Article, the support of illegitimate children of either spouse, and liabilities incurred by either spouse by reason of a crime or a 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

Art. 122. The payment of personal debts contracted by the husband or the wife before or during the marriage shall not be charged to the conjugal properties partnership except insofar as they redounded to the benefit of the family.
Neither shall the fines and pecuniary indemnities imposed upon them be charged to the partnership.
However, the payment of personal debts contracted by either spouse before the marriage, that of fines and indemnities imposed upon them, as well as the support of illegitimate children of either spouse, may be enforced against the partnership assets after the responsibilities enumerated in the preceding Article have been covered, if the spouse who is bound should have no exclusive property or if it should be insufficient; but at the time of the liquidation of the partnership, such spouse shall be charged for what has been paid for the purpose above-mentioned.

1. Read Spouses Boado v. Court of Appeals[2]
2. Personal debts, fines and indemnities.
3. The Rule is that prior to liquidation, the respective shares of the spouses over the common properties are INCHOATE or ABSTRACT.  Thus, no one spouse can segregate a definite portion of the common property yet.

4. Thus, for purposes of making “advances” from the common properties, here are the rules:

ACP. Only one (1) requisite to compel common properties to “advance” the payment prior to liquidation.

ü  1.Separate Properties are insufficient.
   
In turn, for CPG, three (3) requisites must concur.

ü  1.ALL LIABILITIES & OBLIGATIONS under Art. 121 must be satisfied. 
ü  2. Separate Properties must be insufficient. 
ü  3. For personal debts, the same must have been contracted before the marriage.

 v In ACP, parties have fewer separate properties. Thus, ACP automatically must advance payment of personal debts, liabilities and fines. 
v CPG has no duty to make advance payments. It is only confined to obligations enumerated in Article 121. 
v This is the reason why there is no counterpart provision for par. 9 of Art. 94 in Article 121. Instead, Personal debts, fines and indemnities in CPG is embodied in a separate provision which is Art. 122 and not among those enumerated in Art. 121.

4. But whether the property regime is ACP or CPG, the common properties that belong to the regime, whether they qualify as a Family Home or not, shall not be levied upon, let alone, sold at public auction, for an obligation contracted by only one spouse without the consent of the other, nor has redounded to the benefit of the family.

In the very recent  2016 case of Anita U. Lorenzana v. Rodolfo Lelina[1], the Supreme Court was emphatic on this point, to wit:


      “x x x

      Money judgments are enforceable only against property unquestionably belonging to the judgment debtor alone. If property belonging to any third person is mistakenly levied upon to answer for another man’s indebtedness, the Rules of Court gives such person all the right to challenge the levy through any of the remedies provided for under the rules, including an independent “separate action” to vindicate his or her claim of ownership and/ or possession over the foreclosed property.

 X x x

“As a rule, if at the time of levy and sale by the sheriff, the property did not belong to the conjugal partnership, but was paraphernal property, such property may not be answerable for the obligations of the husband which resulted in the judgment against him in favor of another person the levied property being the exclusive property of Ambrosia, and Ambrosia not being a party to the collection case, the levied property may not answer for Aquilino’s obligations. Even assuming that the levied property belonged to the conjugal partnership of Ambrosia and Aquilino, it may still not be levied upon because petitioner did not present proof that the obligation redounded to the benefit of the family. More importantly, Aquilino’s interest over a portion of the levied property is merely inchoate prior to the liquidation of the conjugal partnership.

     Thus, we find that the levied property may not answer for the obligations of Aquilino because the latter does not own it at the time of the levy. Hence the Deed of Final Conveyance and TD No. 11-21367-A were correctly cancelled for being the outcome of an invalid levy”.







[1] P. 322 Tolentino, Civil Code of the Philippines Vol. V 1992
[2] G.R. No. 145222, April 24, 2009





[1] G.R. No. 187850, August 17, 2016

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