Property Regime of Unions Without Marriage


What rule govern the property relationships in unions without marriage or in a void marriage where there is no legal impediment to marry?
Art. 147. When a man and a woman who are capacitated to marry each other, live exclusively with each other as husband and wife without the benefit of marriage or under a void marriage, their wages and salaries shall be owned by them in equal shares and the property acquired by both of them through their work or industry shall be governed by the rules on co-ownership.
In the absence of proof to the contrary, properties acquired while they lived together shall be presumed to have been obtained by their joint efforts, work or industry, and shall be owned by them in equal shares. For purposes of this Article, a party who did not participate in the acquisition by the other party of any property shall be deemed to have contributed jointly in the acquisition thereof if the former’s efforts consisted in the care and maintenance of the family and of the household.
Neither party can encumber or dispose by acts inter vivos of his or her share in the property acquired during cohabitation and owned in common, without the consent of the other, until after the termination of their cohabitation.
When only one of the parties to a void marriage is in good faith, the share of the party in bad faith in the co-ownership shall be forfeited in favor of their common children. In case of default of or waiver by any or all of the common children or their descendants, each vacant share shall belong to the respective surviving descendants. In the absence of descendants, such share shall belong to the innocent party. In all cases, the forfeiture shall take place upon termination of the cohabitation. 

What rule governs the property relationship where one of the parties has legal impediment to marry the other?
Art. 148. In cases of cohabitation not falling under the preceding Article, only the properties acquired by both of the parties through their actual joint contribution of money, property, or industry shall be owned by them in common in proportion to their respective contributions. In the absence of proof to the contrary, their contributions and corresponding shares are presumed to be equal. The same rule and presumption shall apply to joint deposits of money and evidences of credit.
If one of the parties is validly married to another, his or her share in the co-ownership shall accrue to the absolute community or conjugal partnership existing in such valid marriage. If the party who acted in bad faith is not validly married to another, his or her shall be forfeited in the manner provided in the last paragraph of the preceding Article.
The foregoing rules on forfeiture shall likewise apply even if both parties are in both faith.

Under the FC, what are the classes of "unions without marriage"?
1. When a man and a woman who are capacitated to marry each other, live exclusively with each other as husband and wife without the benefit of marriage or under a void marriage (Art. 147, FC).

Illustration:
  • where a man and a woman both above 18 years of age and single and who are capacitated to marry each other since they have no legal impediment to get married, co-habit or live together exclusively with each other as husband and wife without, however, getting married; 
  • or where the man and woman do not have valid marriages with other persons but their marriage is void for such reasons as, the marriage is incestuous, or is against public policy or was solemnized by one who is not authorized by law to perform the marriage.
2. In cases of cohabitation not falling under Art. 147 of the Family Code. These cases refer more particularly where a man and a woman who are not capacitated to marry each other live exclusively with each other as husband and wife without the benefit of marriage or under a void marriage (Art. 147, FC).

Illustration:
  • where a man and a woman live together as husband and wife when one or both of them have existing valid marriages with other persons. 
  • bigamous marriages
  • adulterous  relationships 
  • relationships in a state of concubinage 
  • cohabitation by a man with several women all at the same time.


What requisites or conditions must be shown before Art. 147 of the FC can be applied?
1. That there must be a man and a woman who are capacitated to marry each other and who are living together exclusively with each other as husband and wife but they are not married, or even if they are married, their marriage is void from the beginning.

2. That during the period of their cohabitation, properties should have been acquired by either or both of them through their work or industry or their wages and salaries.


Proof of "actual joint contribution" and the presumption of "equality of contribution" (Art. 148, FC)

A reading of Article 148 readily shows that there must be proof of "actual joint contribution" by both the live-in partners before the property becomes co-owned by them in proportion to their contribution. The presumption of equality of contribution arises only in the absence of proof of their proportionate contributions, subject to the condition that actual joint contribution is proven first. Simply put, proof of actual contribution by both parties is required, otherwise there is no co-ownership and no presumption of equal sharing (Villanueva vs. Court of Appeals, G.R. No. 143286, April 14, 2004)



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