CHAPTER 3- SYSTEM OF ACP
SEC 1 – GENERAL PROVISIONS
ART 88
WHEN ACP WILL GOVERN THE SPOUSES PROPERTY
RELATIONSHIP
a. When it is agreed upon in the marriage
settlement
b. When the spouses did not execute a
marriage settlement; or
c. When the regime agreed upon in the
marriage settlement is void
COMMENCEMENT OF ACP
at the precise moment that the marriage is
celebrated, which means the particular time when
the spouses make their personal declarations that
they take each other as husband and wife followed
by the solemnizer’s pronouncement
*any agreement or stipulation between the spouses,
express or implied, that their absolute community
regime shall commence at any other time is void
ART 89
WAIVER OF RIGHTS, INTERESTS, SHARES & EFFECTS
Waiver may be done BEFORE the marriage in the
MS. If done DURING the subsistence of the
marriage, the waiver if VOID
RATIONALE: right of each spouse in the net asset of
the community property will vest only and will be
determined after the dissolution and liquidation of
the community property
EXCEPTION:
a. When a waiver takes place upon a judicial
separation of property under Art 134 to 138
*The phrase “upon a judicial separation” in
the 2nd par of Art 89 covers the time period
during and after judicial separation
b. If the waiver is executed after the
dissolution of the marriage caused for
instance by death of one spouse or
annulment
*If the waiver takes place without a judicial
separation of property decree, such waiver shall be
VOID because it is contrary to law and public policy
REQUIREMENTS WHERE WAIVER ALLOWED
(ABOVE MENTIONED INSTANCES)
1. Appear in a public instrument;
2. Be recorded in the LCR where the marriage
contract is recorded;
3. Be recorded in the proper registries of
property
PURPOSE OF REQUIREMENTS; EFFECT OF ORAL
WAIVER
If the waiver is orally made and is not recorded, it
will be valid as between the spouses, BUT IT WILL
NOT BIND THIRD PERSONS who may be prejudiced
by such waiver.
CREDITORS’ RIGHT TO RESCIND WAIVER
Even if the waiver is recorded, current creditors
before the waiver with rights recognized by law
cannot be prejudiced by the waiver. They are
allowed to judicially rescind the waiver to the
extent of their credits (accion pauliana)
ART 90
SPECIAL TYPE OF CO-OWNERSHIP
ACP is a special type of co-ownership because the
spouses are co-owners of their communal
properties
*Co-ownership exists whenever the ownership of an
undivided thing or right belongs to different persons
*ACP shall be primarily governed by the provisions
of this Chapter and suppletorily by the provisions on
co-ownership under Art 484 to 501, NCC
SEC 2 – WHAT CONSTITUTES COMMUNITY
PROPERTY
ART 91
COMMUNITY PROPERTY, WHAT IT CONSISTS OF
1. All properties owned by the spouses at the
time of the celebration of the marriage;
2. All properties acquired after the celebration
of the marriage.
AUTOMATIC CONVERSION TO COMMUNITY
PROPERTY
Upon the celebration of the marriage, the present
property of either spouse at the time of the
marriage and the future property acquired
thereafter are automatically converted into the
community property without need of any juridical
act for the purpose
*If they are titled properties, the titles should be
registered in the names of both spouses through the
registration of their MS with the proper registry of
property. Otherwise, third persons acting in good
faith relying on the titles in the name of only one of
the spouses shall not be prejudiced
STIPULATION TO EXCLUDE PROPERTIES FROM THE
COMMUNITY PROPERTY
in the absence of any contrary stipulation between
the spouses, the fruits and income from said
excluded properties by stipulation will still be
considered part of the community property, since
they will not fall in any of the exclusions
enumerated in Art 92
ART 92
EXCLUSIVE PROPERTIES IN THE SYSTEM
1. Gratuitous Acquisitions During Marriage
 “gratuitous title” - by donation, or
testate or intestate succession;
property donated to one of the
spouses by a 3RD person during the
marriage; or, such spouse inherited
a property during the marriage
from his or her parents
*these are excluded unless the donor,
testator or grantor has expressly provided in
the deed of donation, will or grant that they
shall form part of the community property
*fruits and income of the property acquired
by donation or succession are also excluded
2. Personal Properties for Exclusive Use (ex:
clothes, eyeglasses, shoes and the like)
*pieces of jewelry though personally and
exclusively used by either spouse shall form
part of the community property because
they are generally of great value
3. Property Acquired Before the Marriage
Such includes fruits and income thereof if
said spouse has legitimate descendants by a
former marriage
Purpose: to protect the legitime or interest
of the legitimate children in the previous
marriage
*this rule does not apply if the descendants
are illegitimate
*provision does not prejudice the
successional rights of the children of the 2nd
marriage
 If a separate property of either spouse is later
on sold or exchanged for another property, will
the proceeds of the sale or the property so
acquired remain separate property or be now
part of the ACP?
1. If a property is excluded from the ACP by
stipulation in the MS, in the absence of any
agreement, the alienation of such property
converts the proceeds or the property
acquired in its place to community property
2. If a property is excluded from the ACP by
reason of the mandatory provisions of law,
it is still deemed of separate character
should not be easily defeated by the simple
expedient of converting said properties into
some new form
ART 93
PRESUMPTION IN FAVOR OF COMMUNITY
PROPERTY
All properties of the spouses acquired after the
marriage are included in the ACP. Presumption
applies until the liquidation of the ACP
*party who invoked the presumption must first
prove that the subject property was acquired during
the marriage
*the presumption is rebuttable but only by clear,
satisfactory, and convincing evidence
*the presumption applies even when the spouses
are living separately; what is important is that the
ACP is subsisting
SEC 3 – CHANGES UPON AND OBLIGATIONS OF THE
ABSOLUTE COMMUNITY
ART 94
LIABILITIES OF THE ABSOLUTE COMMUNITY
1. Support – comprises everything
indispensable for the sustenance, dwelling,
 clothing, medical attendance, education
and transportation in keeping with the
financial capacity of the family
The community property is responsible for
the support of the:
a. spouses;
b. common children of the spouses;
c. legitimate children of either spouse by a
previous marriage
Support of Illegimate children – shall come
from the exclusive or separate property of
the illegitimate parent-spouse
 If the concerned spouse has no
separate property or the same is
insufficient, the ACP, if financially capable,
shall advance the needed support
 The advances made shall be
deducted from the share of the spouse
obliged to give support upon the liquidation
of the ACP
*Support shall be given to the spouses even if
they are not living together, except when one
spouse leaves the other without valid reason, in
which case the former is not entitled to support
*Support shall be given to the spouses during
the pendency of an action for legal separation
or for annulment of marriage
2. Debts and Obligations Contracted During
the Marriage:
a. Those contracted by the designated
administrator-spouse for the
benefit of the community
b. Those contracted by both spouses
c. Those contracted by one spouse
with the consent of the other
*ACP is not liable for the debts and obligations
incurred by either spouse before the marriage,
except indebtedness which has redounded to
the benefit of the family
3. Debts Contracted by One Spouse Without the
Consent of the Other – ACP shall be liable only if
it can be proven that the debt redounded to the
benefit of the family
*creditor has the burden of proving that the
debt was contracted for the benefit of the
family
*ACP’s liability, if liable, shall be only up to the
extent of the benefit received by the family
4. Taxes and Expenses Incurred on the
Property – All taxes such as license, realty
taxes, surcharges, and all expenses for
repairs, whether minor or major, involving
community property are chargeable against
the ACP
5. Taxes and Expenses for Mere Preservation
of Separate Property during the Marriage –
If an exclusive/ separate property of either
spouse is used by the family, taxes and
expenses incurred during the marriage for
mere preservation of such separate
property shall be chargeable to the ACP
*Mere preservation does not involve major
repairs, but only minor ones
*If the property needs major repairs, it is
the owner-spouse who should shoulder the
expenses considering that he or she has the
greatest interest to conserve it being the
owner
 “Minor repairs” – those for mere
preservation of the property, or
those caused by ordinary wear and
tear
 “Major repairs” – those caused by
extraordinary events such as
storms, floods, earthquakes, fire,
etc. affecting the substance and not
just the enjoyment of the property
6. Expenses for Professional, Vocational, or
Self Improvement Courses
*FC uses term “to commence or complete”
a course, since a spouse might want not
only to complete a course but to start a
new course during the marriage
RATIONALE: to encourage the spouses to
improve themselves for the benefit not only
of their families, but of the nation as a
whole
7. Ante-Nuptial Debts of Either Spouse
Benefiting the Family
GEN RULE: Debts incurred BEFORE the
marriage by either spouse must be paid
ONLY by the separate property of said
spouse
EXCEPTION: If the indebtedness, however,
redounded to the benefit of the family, the
ACP shall be liable, BUT only to the extent
of the benefits received
8. Value of what is Donated or Promised by
Both Spouses to the Common Children
REQUISITES:
1. Both spouses must have made the
donation, or the promise to donate
*donation or promise to donate must
be made by both spouses; otherwise,
ACP is not liable.
*If recipient of donation is a child from
a previous marriage of the other
spouse, the ACP is not liable because it
is an indirect donation to the other
spouse
*If purpose of donation is not
exclusively for commencement or
completion of a professional,
vocational, or self improvement course,
the donation is void
*If the donation is made by one spouse
without the consent of the other in
favor of a child of the former by a
previous marriage, the donation is valid,
but the same is chargeable to the
separate property of the donor-spouse
2. The recipients are the spouses’
common children
3. The purpose is exclusively for
commencement or completion of a
professional, vocational or other
activity for self-improvement.
9. Advances Made by the Community Property
for Acts for which It Is Not Originally Liable:
a. Ante-nuptial 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
*ACP is liable if debtor-spouse has no exclusive
property or if the same is insufficient for the
payment of the obligation
*such advances shall be deducted from the
share of the debtor-spouse in the community
property upon its liquidation
10. Litigation Expenses
 the suit is between the husband and
wife, and that the case is not
groundless, ACP is liable (ex: legal
separation, annulment of marriage,
judicial separation of property,
exclusive administration of the
community property, support and
custody of children)
SOLIDARY LIABILITY OF THE SPOUSES
 Solidary Liability – 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 the
obligation
WHEN COMMUNITY PROPERTY IS INSUFFICIENT
TO PAY CHARGES
If community assets are not sufficient to pay
liabilities enumerated in Art 94, the spouses shall be
solidarily liable for the unpaid balance with their
separate properties. The spouse who paid such is
entitled to a corresponding reimbursement from
the other spouse
*solidary liability shall not include ante-nuptial
debts not redounding to the benefit of the family,
the support of illegitimate children by either spouse,
and liabilities incurred by the spouse by reason of a
crime or a quasi-delict
ART 95
LOSSES AND WINNINGS IN GAMBLING
Losses –gambler-spouse shall answer the same with
his or her exclusive properties
Winnings – such would form part of ACP; winnings
are considered as earnings or properties acquired
during the marriage
RATIONALE: to discourage it as it tends to dissipate
the properties of the family
*If the winning ticket in a lottery or in the
sweepstakes was given to a spouse by a friend, it is
believed that the ticket would be considered a
donation under Art 92(1) and the winnings
therefrom shall be considered separate property,
unless the donor of the ticket expressly provided
that it shall form part of the ACP
Betting Gambling
Games of skill (ex: chess) Games of chance (ex:
jueteng)
SEC 4 – OWNERSHIP, ADMINISTRATION,
ENJOYMENT AND DISPOSITION OF THE
COMMUNITY PROPERTY
ART 96
JOINT ADMINISTRATION AND ENJOYMENT OF
COMMUNITY PROPERTY
GEN RULE: The spouses, being co-owners of the
community properties have the right of joint
administration and enjoyment thereof.
 Joint administration – both spouses
administer together, or each spouse may
administer with the consent of the other,
expressly or impliedly
*Enjoyment includes ownership and possession
 In the event of disagreement between the
spouses, the decision of the husband prevails.
However, if the wife is persistent, she may go to
court. She is given a period of 5yrs within which
to assail her husband’s decision on their
disagreement, reckoned from the date of the
questionable transaction entered into by the
husband
*failure of the wife to go to court within the
prescriptive period will mean her conformity to
the husband’s decision
EXCEPTION: when one spouse may assume sole
powers of administration:
a. When there is an agreement between the
spouses that only one of them shall
administer the ACP; and
b. When one spouse is incapacitated (due to
causes like civil interdiction, absence, etc.),
or otherwise unable to participate in the co-
administration of the community property
 Even if a spouse is given the sole
power to administer the ACP, the
power DOES NOT INCLUDE the
authority to dispose or encumber
community property without the
written consent of the other
spouse, or court authorization
RULES ON THE DISPOSITION OR ENCUMBRANCE
OF COMMUNITY PROPERTY
1. Disposition or encumbrance of community
property must be joint, i.e., both spouses
must consent or approve.
2. The consent of the other spouse to the
encumbrance or disposition must be in
writing
3. If the written consent of the other spouse
cannot be obtained or is being withheld,
then the matter should be brought to court,
and the court will give the authority if the
same is warranted
4. If one spouse acts without the written
consent of the other, or without court
authority, the disposition or encumbrance
shall be void.
 Even if the disposition or encumbrance is void,
it shall be construed as a continuing offer on the
part of the consenting spouse and the 3rd
person, and may be perfected as a binding
contract upon the acceptance by the other
spouse (whose consent was not sought) or
authorization by the court BEFORE the offer is
withdrawn by either or both offerors.
ART 97
DISPOSITION BY WILL OF INTEREST IN
COMMUNITY PROPERTY
Spouses CANNOT dispose of their respective
interest in the community property by way of a
disposition inter vivos. Any such disposition shall be
void, since a spouse’s right to one-half of the
community assets does not vest until the liquidation
of the absolute community. BUT if either spouse
who disposes his or her interest in the ACP, if the
disposition is in the nature of mortis cause, and
subject to the limitations of the law on
testamentary succession, the disposition, if made in
a will, will take effect only upon the death of the
testator spouse, at which time the community
property is already terminated and subject to
liquidation, is valid
*what is allowed to be disposed of by will is NOT
specific property in the ACP but only the interest
therein (RATIONALE: until the liquidation of the
ACP, it is not known what specific properties
remain, and which ones shall be adjudicated to the
individual spouses)
ART 98
PROHIBITION ON DONATION OF COMMUNAL
PROPERTY WITHOUT CONSENT OF THE OTHER
SPOUSE
Any such donation is VOID
Rationale: donation will prejudice the other spouse
who is a co-owner of the property
EXCEPTION:
a. To make moderate donations for charity, or
on occasions of family rejoicing or family
distress
b. To give moderate gifts to each other on the
occasion of any family rejoicing
*What is moderate depends on the financial
circumstances of the couple, the value of
the property donated, and their social
position
 The prohibition should also apply to parties
living together as husband and wife without a
valid marriage (Rationale: those living in
immoral relationship will be in a better position
than those who are living in a valid marriage)
SEC 5 – DISSOLUTION OF ACP
ART 99
GROUNDS FOR TERMINATION OF ACP
1. Death of Either Spouse – ACP shall be
liquidated in the proceeding for the
settlement of the estate of the deceased
*surviving spouse must liquidate the
community property within 1yr from death
of the deceased; after the lapse of 1yr
without any liquidation having been made,
any disposition or encumbrance involving
ACP of the terminated marriage shall be
void
2. When there is a Decree of Legal Separation
3. When the Marriage is Annulled or Declared
Void
 In 2 and 3, offending spouse shall
have no right to share in the net
profits earned by the ACP as it is
forfeited in favor of the common
children, or if none, the children of
the guilty spouse by a previous
marriage, or in default of children,
the innocent spouse
4. In Case of Judicial Separation of Property
During the Marriage – separation of
property is allowed BEFORE the marriage in
a MS. During the marriage, it is not
allowed and cannot take place except by
judicial order. And separation of property
during the marriage by judicial order may
either be (a) for sufficient cause or (b)
voluntary – by joint agreement of the
spouses.
ART 100
Separation De Facto Abandonment
while not living involves not only separation
together, the de facto but implies an
spouses may still be intention never to return to
providing support to the conjugal home and
one another and without providing for the
also to the children needs and maintenance of
one’s family
not a ground for can give cause for legal
legal separation separation
 SEPARATION DE FACTO – cessation of
cohabitation; spouses no longer live
together as husband and wife under the
same roof, but there is no decree of legal
separation obtained by either of them.
EFFECTS OF SEPARATION DE FACTO
1. spouses retain their right of consortium;
2. ACP remains and is not affected;
3. spouses continue to be legal heirs of each
other in intestate succession;
4. there is neither a guilty nor innocent
spouse for purposes of determining
forfeiture of shares after liquidation
5. deserter loses the right to be supported
*the deserting spouse’s obligation to
support the other spouse and the children is
not extinguished
6. Judicial authorization may be obtained in
lieu of spouse’s consent – when consent of
one spouse to any transaction of the other
is required by law, and the latter does not
want to give such consent or is not
available to give it, authorization may be
obtained from the court in a summary
proceeding
*ordinary rules of procedures are not
followed to avoid delay; after the complaint
and answer are filed in court, the
proceeding can be decided on the basis of
affidavits of the parties and witnesses; oral
testimony is required only when needed for
clarification and is discretionary
7. Solidary liability of the spouses. – if ACP is
insufficient, the separate properties of the
spouses shall be solidarily liable for the
support of the family
8. Judicial authorization to administer or
encumber separate property – upon proper
petition in a summary proceeding, spouse
can ask for judicial authority to administer
or encumber specific separate property of
the other spouse, and to use its fruits or
proceeds to satisfy the share of the other
spouse in the support of the family
ART 101
 ABANDONMENT –desertion of the conjugal
dwelling without intention of returning. An
absolute cessation of marital relations,
duties and rights with intention of
perpetual separation. It must not only be
physical estrangement but also amounts to
financial and moral desertion.
PRIMA FACIE PRESUMPTION OF ABANDONMENT
& LEGAL REMEDIES OF DESERTED SPOUSE
check notes on abandonment
SEC 6 – LIQUIDATION OF THE ABSOLUTE
COMMUNITY ASSETS AND LIABILITIES
ART 102
LIQUIDATION PROCEDURE
1. Inventory – An inventory shall be prepared,
listing separately the communal properties
from the exclusive properties of each spouse
2. Payment of debts – The debts and obligations
of the ACP shall be paid out of its assets,
without prejudice to solidary liability of the
spouses’ separate properties in case of
insufficiency of the communal assets
3. Delivery of exclusive properties – Whatever
remains of the exclusive properties of the
spouses shall be delivered to each of them
4. Partition of net assets – net assets of the ACP
shall be divided equally between the spouses,
without prejudice to a contrary agreement in
the marriage settlements, or to a voluntary
waiver of such share
5. Delivery of the presumptive legitime
6. Adjudication of conjugal dwelling and lot –
The conjugal dwelling and lot shall be
adjudicated as follows:
a. In accordance with the agreement of
the parties, if any;
b. If If there is no such agreement, it
shall be adjudicated to the spouse
with whom the majority of the
common children choose to remain;
c. Children below seven (7) years old are
deemed to have chosen the mother,
unless the court decides otherwise
Rationale: mother’s care and
affection for the child during its
tender years are acceptably needed
more than that of the father
d. In case there is no such majority
among the children, the court shall
decide the matter, taking into
 consideration the best interests of the CONSEQUENCES OF FAILURE TO LIQUIDATE
children Any disposition or encumbrance of
community property by the surviving spouse
Net Assets Net Profits is void
constitute the net constitute the “increase in If surviving spouse contracts a subsequent
remainder of the value between the market marriage, a mandatory regime of complete
ACP or CPG after value of the community separation of property shall govern the
payment of debts property at the time of the property relations of the subsequent
and obligations of celebration of the marriage marriage (Rationale: to protect the children
the community or and the market value at the of the first marriage considering that their
conjugal property time of dissolution shares in the estate of their deceased parent
have not yet been adjudicated to them (there
*debts and obligations must have been paid first being no settlement), and these shares might
and that there is still a remainder before any net be mixed up with the property of the second
profits could be considered marriage)

RULE OF FORFEITURE ART 104

1. Articles 43 (2) and 63 (2) refer to forfeiture
of shares in the net profits, and not of the
capital of either spouse
2. Articles 147 and 148 (unions without
marriage) mention of forfeitures when a
partner acted in bad faith. What is to be
forfeited is not net profits because there is
no CPG or ACP in such unions. What is
forfeitable is the share of the errant partner
in the co-ownership.
ART 103
MANDATORY LIQUIDATION WHEN MARRIAGE
TERMINATED BY DEATH
community property shall be liquidated in the
same proceeding for the settlement of the
estate of the deceased
the law requires the surviving spouse to
liquidate (either judicially or extra-judicially) the
community property within 1yr from the death
of the deceased
If no debts to be paid, liquidation may be by
extra-judicial settlement or by an ordinary
action for partition
If there are debts to be paid, the surviving
spouse has no choice but to file a proceeding
for the settlement of the estate of the deceased
spouse, and the community property will be
liquidated in the same proceeding
SIMULTANEOUS LIQUIDATION OF COMMUNITY
PROPERTIES OF TWO OR MORE MARRIAGES
*spouse who contracted two or more marriages
before the effectivity of the FC might have lived
these marriages without liquidation of the
community properties
In the event of such, the respective capital,
fruits, incomes of each community shall be
segregated or determined to effect a fair and
just liquidation based upon such proofs as
may be competent and admissible in
accordance with the rules of evidence
In the absence of competent and admissible
proofs resulting in doubt or failure of
determination, the properties shall be divided
between the different communities on the
basis of a double proportion – that is, in
proportion to the capital, and duration of
each community.
APPLICABILITY OF THE ARTICLE
Applies only to marriages contracted before the
effectivity of the FC (Rationale: Art. 103 FC
provides that if surviving spouse contracts
subsequent marriage without liquidating the
dissolved community of the terminated marriage,
the regime of separation of property shall
automatically apply to the property relations of the
spouses in the subsequent marriage)