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The trial court ruled in favor of Lupo by declaring the In making proof of his case, it is paramount that the best
contested property as owned in common by him and and most complete evidence be formally entered.
Yolanda. The CA reversed the decision as Lupo failed Rather than presenting proof of his actual contribution
to prove material contribution in the acquisition of the to the purchase money used as consideration for the
same. disputed property, Lupo diverted the burden imposed
upon him to Yolanda by painting her as a shrewd and
Lupo appealed contending that he was not burdened to scheming woman without the capacity to purchase any
prove that he contributed in the acquisition of the property. Instead of proving his ownership, or the extent
property because with or without contribution he was thereof, over the subject property, Lupo relegated his
deemed a co-owner, adding that under Article 484, complaint to a mere attack on the financial capacity of
NCC, for as long as they acquired the property during Yolanda. He presented documents pertaining to the ins
their extramarital union, such property would be legally and outs of the dollar accounts of ENRICO and
owned by them in common and governed by the rule on EURASIAN, which unfortunately failed to prove his
co-ownership. actual contribution in the purchase of the said property.
The fact that Yolanda had a limited access to the funds
Issue: of the said corporations and had repeatedly withdrawn
Who owns the subject property? Does Lupo need to money from their bank accounts for their behalf do not
prove that he contributed in the acquisition of the prove that the money she used in buying the disputed
property? property, or any property for that matter, came from said
withdrawals.
Held:
It is not disputed that the parties herein were not As we see it, petitioner's claim of co-ownership in the
capacitated to marry each other because petitioner disputed property is without basis because not only did
Lupo Atienza was validly married to another woman at he fail to substantiate his alleged contribution in the
the time of his cohabitation with the respondent. Their purchase thereof but likewise the very trail of
property regime, therefore, is governed by Article 148 of documents pertaining to its purchase as evidentiary
the Family Code, which applies to bigamous marriages, proof redounds to the benefit of the respondent. In
adulterous relationships, relationships in a state of contrast, aside from his mere say so and voluminous
concubinage, relationships where both man and woman records of bank accounts, which sadly find no relevance
are married to other persons, and multiple alliances of in this case, the petitioner failed to overcome his burden
the same married man. Under this regime, only the of proof. Allegations must be proven by sufficient
properties acquired by both of the parties through evidence. Simply stated, he who alleges a fact has the
their actual joint contribution of money, property, or burden of proving it; mere allegation is not evidence.
industry shall be owned by them in True, the mere issuance of a certificate of title in the
common in proportion to their respective name of any person does not foreclose the possibility
contributions ... Proof of actual contribution is required. that the real property covered thereby may be under co-
ownership with persons not named in the certificate or
As it is, the regime of limited co-ownership of property that the registrant may only be a trustee or that other
governing the union of parties who are not legally parties may have acquired interest subsequent to the
capacitated to marry each other, but who nonetheless issuance of the certificate of title. However, as already
live together as husband and wife, applies to stated, petitioner's evidence in support of his claim is
properties acquired during said cohabitation in either insufficient or immaterial to warrant the trial courts
proportion to their respective contributions. Co- finding that the disputed property falls under the purview
ownership will only be up to the extent of the proven of Article 148 of the Family Code. In contrast to
actual contribution of money, property or industry. petitioners dismal failure to prove his cause, herein
Absent proof of the extent thereof, their contributions respondent was able to present preponderant evidence
and corresponding shares shall be presumed to be of her sole ownership. There can clearly be no co-
equal. ownership when, as here, the respondent sufficiently
established that she derived the funds used to purchase
Here, although the adulterous cohabitation of the the property from her earnings, not only as an
parties commenced in 1983, or way before the accountant but also as a businesswoman engaged in
effectivity of the Family Code on August 3, 1998, Article foreign currency trading, money lending and jewelry
148 thereof applies because this provision was retail. She presented her clientele and the promissory
intended precisely to fill up the hiatus in Article 144 of notes evincing substantial dealings with her clients. She
the Civil Code. Before Article 148 of the Family Code also presented her bank account statements and bank
was enacted, there was no provision governing property transactions, which reflect that she had the financial
capacity to pay the purchase price of the subject psychological report establishing that respondent was
property. suffering from Narcissistic Personality Disorder which
was incurable and deeply ingrained in her system since
FRANCISCO VS. MASTER IRON WORKS her early formative years.
CONSTRUCTION CORPORATION The trial court granted the petition on the ground that
GR. No. 151967, February 16, 2005 respondent was psychologically incapacitated to
comply with the essential marital obligations at the time
FACTS: of the celebration of the marriage and declared their
marriage void ab initio. It ordered that a decree of
Josefina Castillo was 24 years old when she and absolute nullity of marriage shall only be issued upon
Eduardo Francisco got married on January 1983. The compliance with Articles 50 and 51 of the Family Code.
latter was then employed as Vice President in a Private Trial court, upon motion for partial reconsideration of
Corporation. Josefina acquired two parcels of land petitioner, modified its decision holding that a decree of
where Imus Bank executed a deed of absolute sale in absolute nullity of marriage shall be issued after
favor of Josefina, married to Eduardo. An affidavit of liquidation, partition and distribution of the parties’
waiver was executed by Eduardo where he declared properties under Article 147 of the Family Code.
that prior to his marriage with Josefina, the latter ISSUE:Whether the trial court erred when it ordered that
purchased the land with her own savings and that he adecree of absolute nullity of marriage shall only be
waived whatever claims he had over the property. issued after liquidation, partition, and distribution of the
When Josefina mortgaged the property for a loan, parties’ properties under Article 147 of the Family Code.
Eduardo affixed his marital conformity to the deed. In
1990, Eduardo who was then a General Manager, HELD:
bought bags of cement from defendant but failed to pay Yes. The trial court’s decision is affirmed with
the same. The latter filed a complaint for recovery and modification. Decree of absolute nullity of the marriage
trial court rendered judgment against Eduardo. The shall be issued upon finality of the trial court’s decision
court then issued a writ of execution and the sheriif without waiting for the liquidation, partition, and
issued a notice of levy on execution over the alleged distribution of the parties’ properties under Article 147 of
property of Josefina for the recovery of the balance of the Family Code.
the amount due under the decision of the trial court.
Petitioner filed a third party claim over the 2 parcels of RATIO:
land in which she claimed as her paraphernal property. The Court has ruled in Valdes v. RTC that in a void
marriage, regardless of its cause, the property relations
ISSUE: of the parties during the period of cohabitation is
WON the subject property is the conjugal property of governed either by Article 147 or Article 148 of the
Josefina and Eduardo. Family Code. Article 147 of the Family Code applies to
union of parties who are legally capacitated and not
HELD: barred by any impediment to contract marriage, but
The Court ruled that petitioner failed to prove that she whose marriage is nonetheless void, such as petitioner
acquired the property with her personal funds before her and respondent in the case before the Court.
cohabitation with Eduardo and that she was the sole For Article 147 of the Family Code to apply, the following
owner. The Deed of Absolute Sale on record showed it elements must be present:
was issued after her marriage. Their case fall under 1. The man and the woman must be capacitated to marry
Article 148 and since they got married before the Family each other;
Code, the provision, pursuant to Art 256, can be applied 2. They live exclusively with each other as husband
retroactively if it does not prejudice vested rights. and wife; and
Petitioner likewise failed that she had any vested right. 3. Their union is without the benefit of marriage, or their
marriage is void.
Where the parties are in a void marriage due to a legal All these elements are present in this case and there is
impediment that invalidates such marriage, Art 148 no question that Article 147 of the Family
should be applied. In the absence of proof that the Code applies to the property relations between
wife/husband has actually contributed money, property, petitioner and respondent.
or industry to the properties acquired during such union The trial court erred in ordering that a decree of absolute
the presumption of co-ownership will not arise. nullity of marriage shall be issued only after liquidation,
partition and distribution of the parties’ properties under
The petition was denied for lack of merit. The decision Article 147 of the Family Code. The ruling has
of CA that the property was conjugal was affirmed. no basis because Section 19(1) of the Rule does not
apply to cases governed under Articles 147 and 148 of
DINO VS DINO the Family Code. Section 19(1) of the Rule provides:
FACTS: Sec. 19. Decision. – (1) If the court renders a decision
Alain M. Diño (petitioner) and Ma. Caridad L. granting the petition, it shall declare therein that the
Diño(respondent) got married on 14 January 1998 decree of absolute nullity or decree of annulment shall
before Mayor Vergel Aguilar of Las Piñas City. On 30 be issued by the court only after compliance
May 2001, petitioner filed an action for Declaration of with Articles 50 and 51 of the Family Code as
Nullity of Marriage against respondent, citing implemented under the Rule on Liquidation, Partition
psychological incapacity under Article 36 of the Family and Distribution of Properties.
Code.Dr. Nedy L. Tayag (Dr. Tayag) submitted a
It is clear from Article 50 of the Family Code that Section action for recovery the rice land and the house and lot
19(1) of the Rule applies only to marriages which are both purchased by Miguel during his cohabitation with
declared void ab initio or annulled by final judgment Erlinda.
under Articles 40 and 45 of the Family Code. In short, ISSUE:
Article 50 of the Family Code does not apply to Does Carlina have the right to recover the properties
marriages which are declared void ab initio under Article acquired during Miguel and Erlinda’s cohabitation?
36 of the Family Code, which should be declared void HELD:
without waiting for the liquidation of the properties of the While Miguel and Erlinda contracted marriage, said
parties. union was void because the marriage with Carlina was
In both instances under Articles 40 and 45, the subsisting and unaffected by the de facto separation.
marriages are governed either by absolute community Article 148 of the Family Code provides that for cases
of property or conjugal partnership of gains unless the of cohabitation when parties are not capacitated to
parties agree to a complete separation of property in a marry each other, the properties acquired by both of the
marriage settlement entered into before the marriage. parties through their actual joint contribution of money,
Since the property relations of the parties is governed property or industry shall be owned by them in common
by absolute community of property or conjugal in proportion to their respective contributions.
partnership of gains, there is a need to liquidate, Erlinda failed to prove that she actually contributed
partition and distribute the properties before a decree of money to buy the rice land. Consequently, the rice land
annulment could be issued. That is not the case for should revert to the conjugal partnership property of the
annulment of marriage under Article 36 of the Family deceased Miguel and private respondent Carlina
Code because the marriage is governed by the ordinary Palang.
rules on co-ownership. As to the house and lot, testimonies reveal that
In this case, petitioner’s marriage to respondent was Miguel Palang provided the money for the
declared void under Article 36 of the Family Code and purchase and directed that Erlinda’s name be
not under Article 40 or 45. Thus, what governs the placed as the vendee. This too should revert to
liquidation of properties owned in common by petitioner the conjugal partnership.
and respondent are the rules on co-ownership. In As to Kristopher Palang’s status and claim as
Valdes, the Court ruled that the property relations of an illegitimate son and heir to Miguel’s estate
parties in a void marriage during the period should be ventilated in the proper probate court
of cohabitation is governed either by Article 147 or or in a special proceeding instituted for the
Article 148 of the Family Code. The rules on co- purpose.
ownership apply and the properties of the spouses
should be liquidated in accordance with the Civil Code
provisions on co-ownership. Under Article 496 of JACINTO SAGUID vs. CA, RTC, BRANCH 94, BOAC,
the Civil Code, “[p]artition may be made by agreement MARINDUQUE and GINA S. REY
between the parties or by judicial proceedings. x x x.” It October 25, 2012 § Leave a comment
is not necessary to liquidate the properties of the
spouses in the same proceeding for declaration of FACTS:
nullity of marriage.
Seventeen-year old Gina S. Rey was married, but
separated de facto from her husband, when she met
AGAPAY vs. PALANG and cohabited with petitioner Jacinto Saguid In 1996,
276 SCRA 341 the couple decided to separate and end up their 9-year
cohabitation. private respondent filed a complaint for
FACTS: Partition and Recovery of Personal Property with
Miguel Palang contracted his first marriage Carlina (or Receivership against the petitioner. She prayed that she
Cornelia) Vallesterol. A few months after the wedding, be declared the sole owner of these personal properties
he left to work in Hawaii. They had 1 child Herminia and that the amount of P70,000.00, representing her
Palang. Miguel returned twice but he stayed with his contribution to the construction of their house, be
brother, not his wife and child. It was found that as early reimbursed to her.
as 1957, Miguel had attempted to divorce Carlina in
Hawaii. ISSUE: WON there are actual contributions from the
In 1973, 63 year-old Miguel contracted second marriage
parties
with 19 year-old Erlinda Agapay. Miguel and Erlinda
jointly purchased a parcel of agricultural land, with the
TCT issued in their names and a house and lot with the HELD:
TCT issued in Erlinda’s name. Miguel and Erlinda’s it is not disputed that Gina and Jacinto were not
cohabitation produced a son Kristopher. capacitated to marry each other because the former
Miguel and Cornelia Palang executed a Deed of was validly married to another man at the time of her
Donation as a form of compromise agreement to settle cohabitation with the latter. Their property regime
a case filed by the latter. They agreed to donate their therefore is governed by Article 148 of the Family Code,
conjugal property consisting of six parcels of land to which applies to bigamous marriages, adulterous
their only child, Herminia Palang. relationships, relationships in a state of concubinage,
In 1979, Miguel and Erlinda were convicted of relationships where both man and woman are married
Concubinage upon Carlina’s complaint. Two years later, to other persons, and multiple alliances of the same
Miguel died. Carlina and her daughter instituted an married man. Under this regime, “…only the properties
acquired by both of the parties through their actual joint HELD:
contribution of money, property, or industry shall be In the instant case, the transfer of land from Agro-Macro
owned by them in common in proportion to their Development Corporation to Jambrich, who is an
respective contributions …” Proof of actual contribution Austrian, would have been declared invalid if
is required. challenged, had not Jambrich conveyed the properties
to the petitioner who is a Filipino citizen. While the
acquisition and the purchase by Wilhelm Jambrich of
Even if cohabitation commenced before family code,
the properties under litigation were void ab initio since
article 148 applies because this provision was intended
they were contrary to the Constitution of the Philippines,
precisely to fill up the hiatus in Article 144 of the Civil the acquisition of these properties by plaintiff who is a
Code. Filipino citizen from him, has cured the flaw in the
The fact that the controverted property was titled in the original transaction and the title of the transferee is valid.
name of the parties to an adulterous relationship is not As the property in dispute is already in the hands of a
sufficient proof of co-ownership absent evidence of qualified person, a Filipino citizen, there would be no
actual contribution in the acquisition of the property. more public policy to be protected. The objective of the
constitutional provision to keep our lands in Filipino
In the case at bar, the controversy centers on the house hands has been achieved.
and personal properties of the parties. Private
respondent alleged in her complaint that she
contributed P70,000.00 for the completion of their
house. However, nowhere in her testimony did she
specify the extent of her contribution. What appears in
the record are receipts in her name for the purchase of
construction materials.
FACTS:
Petitioner appealed the reversal by the CA of the trial
court’s ruling in his favor which declared the titles of
respondent as null and void.
Wilhelm Jambrich, an Austrian, and respondent fell in
love and decided to live together. Eventually, however,
they went their separate ways as respondent found a
new boyfriend while Jambrich began to live with another
woman. Jambrich met petitioner who was engaged in
the real estate business and built and repaired
speedboats as a hobby. Jambrich purchased an engine
and some accessories for his boat from petitioner, for
which he became indebted to the latter. To pay for his
debt, he sold his rights and interests in the Agro-Macro
properties to petitioner as evidenced by a “Deed of
Absolute Sale/Assignment.” When petitioner sought to
register the deed of assignment, he discovered that
titles to the three lots have been transferred in the name
of the respondent and that the subject property has
already been mortgaged.
Petitioner imputes error on the judgment of the CA for
holding that Jambrich has no title to the titles in question
and may not, therefore, transfer and assign any rights
or interests in favor of the petitioner.
ISSUE:
Having found that the true buyer of the disputed house
and lots was the Austrian Wilhelm Jambrich, what now
is the effect of registration of the properties in the name
of respondent?