Art.

18:
-properties bought on installment before the marriage and paid partly by exclusive
funds and partly by conjugal funds can be exclusive or conjugal depending on
(when ownership o f the property was transferred.)
Exclusive- if the owner ship was transferred immediately upon its purchase when
the buyer was not married.
Conjugal- if the ownership was transferred only upon payment of the installment
when the buyer is already married, and the said installment was paid from the
conjugal funds.
Amount advanced by the partnership or by either or both spouses shall be
reimburse by the owner upon liquidation of the partnership.
Art. 119:
-payment of the credit in favor of one spouse made during the marriage shall
remain as exclusive property of the spouse concerned . However, the interest
thereof which accrued during marriage is conjugal as it is considered fruits of the
partnership.
i.e. a wife lent a sum of 1M to her friend, when she was not still married, payable for
ten years with interest of 6% per annum. 3 years after the loan was contracted, she
got married. After 5 years the marriage was dissolved. The wife continued collecting
for the remaining 2 years.
Who owns the principal and the interest? (Principal is the money used to pay down
the balance of the loan; interest is the charge you pay to the lender for the privilege
of borrowing the money.)
3years not married. Wife sole owner.
5years married. Principal. wife is also the owner
Interests. Conjugal partnership.
2years not married. Wife sole owner.
Art. 120:
-Improvement introduced by the conjugal partnership on the land belonging to
either spouse, the land and the improvement will be considered conjugal or
exclusive depending on its value.
Cost of the improvement made by conjugal partnership
- (if cost of improvement more than the value of the land at the time of
improvement) entire property shall belong to the conjugal partnership.
- if land is more valuable than the improvement) land and improvement shall belong
to the owner-spouse.
*both cases partnership or spouse concerned has the obligation to reimburse the
cost of the improvement of the land at the time of the liquidation of the conjugal
partnership.
* Ownership of the land and the improvement shall be transferred only upon
liquidation of the conjugal partnership. Ownership is retained by the original owner
until at the time of liquidation.
i.e. if lot of the husband is worth 900k, and a 6M house is constructed, house and lot
will belong to the conjugal partnership, but it will reimburse the husband 900K. The
ownership will vested in the conjugal partnership at the time of reimbursement and
this reimbursement will be made when the conjugal partnership is liquidated.

-if the house costs less than 900k, the husband will be the owner of the house and
lot, but he must reimburse the conjugal partnership the cost of the house.
Art. 121:
-charges and obligations of this article are the same as those of the absolute
community of property regime mentioned in Article 94 of the FC. The only difference
is paragraph 9 of article 94 which refers to the 3 personal obligations of a spouse.
Which is not reproduced in art. 121 as they treated separately in
Art. 122.
-Ante-nuptial debts which redounded to the benefits of the family are always
chargeable to the conjugal partnership. Debts incurred by a spouse during the
marriage can also be charged against the conjugal partnership if the same
redounded to the benefit of the family.
i.e. a husband contracts a loan on behalf of the family business, the presumes, that
such obligation will redound to the benefit of the conjugal partnership.

ABSOLUTE COMMUNITY

All properties owned at the time of

marriagebecome COMMUNITY
PROPERTY that is,co-owned by the
spouses. This includes property of each
spouse before the marriage na dinala niya
sa kasal ay co-owned na rin ni mister o
misis.

CONJUGAL PARTNERSHIP

Each spouse retains his/her

property before the marriage. Only
the FRUITS and the INCOMEof the
separate properties of the husband and the
wife during the marriage become part of
the Conjugal Partnership of Gains.

Kapag HIWALAYAN na: Simple lang po.

Kapag HIWALAYAN NA: what is divided Dahil FRUITS at INCOME lang naman ng
equally between the spouses or their heirs separate property ang nagiging bahagi ng
upon the dissolution and liquidation of the Conjugal Partnership, e de the separate
community property is the net remainder of properties of the spouses are returned upon
the properties of the absolute community. the dissolution of the partnership, and only
Kung kaya kung may lupa ka, kinasal ka, the net profits of partnership are divided
ACP ang property regime mo: magiging
equally between the spouses or their heirs.
co-owner niyan si mister/misis athumanda Makukuha mo ang sayo; pero yung
ka dahil hahatiin yan sa inyo.
KINITA nun ang HAHATIIN sa pagitan
niyong mag-asawa.
DEFAULT ito. Hindi na kailangan
HINDI ITO DEFAULT. Ibig sabihin,
pagkasunduan pa na Absolute Community
kailangan niyo itong pagkasunduan. Kapag
of Property ang nararapat na Property
hindi pinagka-sunduan bago ang kasal,
Regime niyong mag-asawa. Kapag wala
hindi ito ang magiging property regime
kayong dinesignate o pinag-usapan, ACP
niyo.
na ang property regime niyo.
Mas mahirap i-liquidate kasi may
Mas madali ito i-liquidiate.
kwentahan pa na kasama.