Separation of Property of the Spouses and Administration of Common Property by One Spouse During the Marriage



Can there be separation of property between the spouses during the marriage?

In the absence of an express declaration in the marriage settlements, the separation of property between spouses during the marriage shall not take place except by judicial order. Such judicial separation of property may either be voluntary or for sufficient cause. (Art. 134, FC)


System of complete separation of property

The system of complete separation of property shall govern the property relation of the spouses only in the following cases:

1. When it expressly provided for in the marriage settlements;

2. When it is so declared by the court;

3. When the surviving spouse contract a subsequent marriage without first liquidating the community or conjugal partnership property, a mandatory regime of complete separation of property shall govern the property relations of the subsequent marriage. (Art. 103 par. 3, FC and Art 130 par. 3, FC)


Sufficient cause for judicial separation of property

Any of the following shall be considered sufficient cause for judicial separation of property:

(1) That the spouse of the petitioner has been sentenced to a penalty which carries with it civil interdiction;

(2) That the spouse of the petitioner has been judicially declared an absentee;

(3) That loss of parental authority of the spouse of petitioner has been decreed by the court;

(4) That the spouse of the petitioner has abandoned the latter or failed to comply with his or her obligations to the family as provided for in Article 101;

(5) That the spouse granted the power of administration in the marriage settlements has abused that power; and

(6) That at the time of the petition, the spouses have been separated in fact for at least one year and reconciliation is highly improbable.

In the cases provided for in Numbers (1), (2) and (3), the presentation of the final judgment against the guilty or absent spouse shall be enough basis for the grant of the decree of judicial separation of property. (Art. 135, FC)


Steps in voluntary separation of property.

The spouses may jointly file a verified petition with the court for the voluntary dissolution of the absolute community or the conjugal partnership of gains, and for the separation of their common properties. 

All creditors of the absolute community or of the conjugal partnership of gains, as well as the personal creditors of the spouse, shall be listed in the petition and notified of the filing thereof. The court shall take measures to protect the creditors and other persons with pecuniary interest. (Art. 136, FC)


Liquidation upon separation of property; support

Once the separation of property has been decreed, the absolute community or the conjugal partnership of gains shall be liquidated in conformity with this Code.

During the pendency of the proceedings for separation of property, the absolute community or the conjugal partnership shall pay for the support of the spouses and their children. (Art. 1374, FC)


Regime after dissolution

After dissolution of the absolute community or of the conjugal partnership, the provisions on complete separation of property shall apply. (Art. 138, FC)


Recording of requirements

The petition for separation of property and the final judgment granting the same shall be recorded in the proper local civil registries and registries of property. (Art. 139, FC)


Protection to creditors

The separation of property shall not prejudice the rights previously acquired by creditors. (Art. 140, FC)


How and when may the spouses terminate the judicial separation of property? What is the effect of such termination?

The spouses may, in the same proceedings where separation of property was decreed, file a motion in court for a decree reviving the property regime that existed between them before the separation of property in any of the following instances:

(1) When the civil interdiction terminates;

(2) When the absentee spouse reappears;

(3) When the court, being satisfied that the spouse granted the power of administration in the marriage settlements will not again abuse that power, authorizes the resumption of said administration;

(4) When the spouse who has left the conjugal home without a decree of legal separation resumes common life with the other;

(5) When parental authority is judicially restored to the spouse previously deprived thereof;

(6) When the spouses who have separated in fact for at least one year, reconcile and resume common life; or

(7) When after voluntary dissolution of the absolute community of property or conjugal partnership has been judicially decreed upon the joint petition of the spouses, they agree to the revival of the former property regime. No voluntary separation of property may thereafter be granted.

The revival of the former property regime shall be governed by Article 67. (Art. 141, FC)


Transfer of administration 

The administration of all classes of exclusive property of either spouse may be transferred by the court to the other spouse:

(1) When one spouse becomes the guardian of the other;

(2) When one spouse is judicially declared an absentee;

(3) When one spouse is sentenced to a penalty which carries with it civil interdiction; or

(4) When one spouse becomes a fugitive from justice or is in hiding as an accused in a criminal case.

If the other spouse is not qualified by reason of incompetence, conflict of interest, or any other just cause, the court shall appoint a suitable person to be the administrator. (Art. 142, FC)


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Should the spouses, H and W, decide to separate their properties during the marriage, how could they validly perfect the separation of such properties?

Spouses H and W have to secure judicial approval. Said separation of property may either be voluntary (by agreement) or for sufficient cause. (Art. 134, FC)


H and W, after 10 years of unhappy marital life, signed a formal agreement whereby they shall divide, share and share alike, all their conjugal properties. State your opinion as to the legal effect of such agreement. 

The agreement is void. According to Art. 134 of the FC, "in the absence of an express declaration in the marriage settlements, the separation of property between spouses during the marriage shall not take place except by judicial order. This principle declares as void and no effect every extrajudicial agreement, during marriage, for the dissolution of the conjugal partnership or the absolute community of property between husband and wife. 


What are the causes for judicial separation of property?

It depends.

1. If the judicial separation of property is voluntary, then mere agreement by both spouses will be sufficient.

2. If it is involuntary, any of the causes mentioned in Art. 135, FC shall be considered sufficient.


What are the effects of a decree of separation of property between the spouses?

Once the separation of property has been decreed:

1. The absolute community or the conjugal partnership of gains shall be liquidated in conformity with this Code.

During the pendency of the proceedings for separation of property, the absolute community or the conjugal partnership shall pay for the support of the spouses and their children. (Art. 137, FC)

2. After dissolution of the absolute community or of the conjugal partnership, the provisions on complete separation of property shall apply. (Art. 138, FC) 

3. The rights previously acquired by creditors are not prejudiced. (Art. 140, FC) Also the spouses shall continue to be solidary liable with their separate properties to creditors (Art. 121, last sentence, FC)

4. Notwithstanding the separation of property between the spouses, the spouses shall continue to be jointly liable for the support of the children. (Art. 195 [3], FC). Likewise, the spouses shall continue to be mutually obliged to support each other unless a final judgment granting a petition for legal separation or for annulment of marriage or declaration of nullity of marriage has been obtained, in which case, the obligation of mutual support between the spouses ceases. (Arts. 195 and 198, FC)


How does an instance where the assumption of sole administration by either spouse of the absolute community or conjugal partnership property differ from a cash where administration of all classes of exclusive property of either spouse are transferred by the court to the other spouse?

One spouse may assume the sole administration of the absolute community or conjugal partnership property in the event that the other spouse is incapacitated or otherwise unable to participate in the administration of the common properties. Said spouse can assume administration without seeking court authorization. This is so because the administration of the absolute community or conjugal partnership property belong to both spouses jointly. (Arts. 96 and 94, FC)

On the other hand, administration of all classes of exclusive property of either spouse may be transferred by the court to the other spouse:

(1) When one spouse becomes the guardian of the other;

(2) When one spouse is judicially declared an absentee;

(3) When one spouse is sentenced to a penalty which carries with it civil interdiction; or

(4) When one spouse becomes a fugitive from justice or is in hiding as an accused in a criminal case.

If the other spouse is not qualified by reason of incompetence, conflict of interest, or any other just cause, the court shall appoint a suitable person to be the administrator. (Art. 142, FC)





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