A Practical Legal Guide

I. Snapshot: The Short Answers

The general rule: In the Philippines, a common-law (live-in) partner is not automatically liable for the debts of the other partner.
Reason: Contracts and debts are personal—they bind only those who signed or are legally bound (e.g., guarantors, business partners).
When you might be affected:
- You signed as co-borrower / guarantor / surety / partner; or
- The debt is tied to property you co-own, and the creditor goes after your partner’s share.
Living together alone does not create “spousal liability.” Philippine law distinguishes legal spouses from unions in fact (common-law relationships).
Key laws involved:
- Civil Code (contracts & obligations; relativity of contracts)
- Family Code (Articles 147 & 148 on property relations of unions in fact)

This article explains how these rules actually work in real life.

II. “Common-Law Partner” in Philippine Context

Technically, Philippine law does not use the term “common-law marriage” for relationships formed here. What we commonly call common-law, live-in or partner is treated in law as a union in fact, covered mainly by the Family Code:

Article 147 – For a man and a woman who:
- Are not married to anyone else; and
- Are not disqualified to marry each other; and
- Live together as husband and wife.
➜ Properties acquired during the union are generally co-owned, presumed 50-50, unless there is proof of different contributions.
Article 148 – For relationships where:
- One or both are married to somebody else, or
- The relationship is otherwise adulterous, bigamous, or void, or
- There are legal impediments to marry.
➜ Only properties acquired through actual joint contribution are co-owned, and only in proportion to each partner’s proven contribution.

Important: These provisions talk about property, not directly about debts—but they affect how creditors can go after property.

III. Core Principle: Debts Are Personal (Relativity of Contracts)

Under the Civil Code, contracts take effect only between the parties, their assigns and heirs, except in special cases (like a stipulation for a third party).

Applied to debts:

If Partner A took a loan and only A signed, the contract is between A and the creditor.
Partner B, who did not sign anything and did not validly authorize A to represent them, is not automatically bound.
Simply being a live-in partner does not create automatic legal liability for each other’s debts.

So the default starting point is:

No signature or valid authorization = no personal liability.

IV. Property Relations in Unions in Fact and How They Tie Into Debts

Even if a non-debtor partner isn’t personally liable, their shared property can be affected in certain cases. That’s where Articles 147 and 148 matter.

1. Article 147 unions (both free to marry)

Wages, salaries, and properties acquired during the union are presumed co-owned, usually 50-50.
Each partner has an undivided share in the community property.

Debt impact:

A debt personally incurred by Partner A does not automatically attach to Partner B.
However, Partner A’s share in the co-owned property can be reached by A’s creditors.
Creditors cannot take more than A’s share, but in practice they might try to go after the whole property, forcing a partition or sale where B is entitled to their share.

2. Article 148 unions (one or both are married to another, or otherwise disqualified)

Only properties acquired by joint contributions of money, property, or industry are co-owned.
The share of each is in proportion to their contribution—no automatic 50-50 presumption.

Debt impact:

Same principle: creditors can go after the debtor’s share in any co-owned property, but not the innocent partner’s share.
Proving contributions (receipts, bank transfers, etc.) becomes crucial.

V. When a Common-Law Partner Is Not Liable for the Other’s Debt

Here are common situations where the non-borrowing partner is not personally liable:

Personal loans signed by only one partner
- Example: A salary loan, personal bank loan, online loan, or bumbay (5-6) loan only in Partner A’s name.
- Partner B is not contractually bound unless they:
  - Signed as co-borrower / co-maker / guarantor, or
  - Gave documented authority to A to borrow on their behalf.
Credit card debts in one partner’s name only
- The main cardholder is solely liable to the bank.
- A supplementary cardholder is typically not primarily liable unless the bank’s terms and conditions make them solidarily liable and they agreed to those terms. Normally, liability stays with the principal cardholder.
Debts incurred before the relationship started
- Old loans made before cohabitation remain that person’s obligations.
- The new partner does not retroactively assume those debts just because they moved in together.
Secret or fraudulent loans taken by one partner without the other’s knowledge or consent
- If only one partner signed, that partner is the debtor.
- The other partner being “benefited” indirectly (e.g., money was used for groceries or gifts) does not automatically create legal liability, barring special doctrines like unjust enrichment (rare in typical consumer loans) or clear proof of agency.
Government dues of one partner
- Personal obligations like income tax, SSS, PhilHealth, Pag-IBIG arrears are generally personal to the registered person, not to their common-law partner.

VI. When a Common-Law Partner Can Be Liable or Affected

Now, the important exceptions—where the non-borrowing partner can be held liable or affected:

1. You signed as co-borrower / co-maker / joint debtor

If you signed the loan contract or promissory note along with your partner:

You are contractually liable under the terms you signed.
If the contract states “solidary liability” (very common language in bank and financing contracts), the creditor may go after either of you for the full amount, not just your “share.”

2. You signed as guarantor or surety

A guarantor or surety promises to answer for another person’s debt:

If you signed a guarantee or suretyship, you may be liable:
- As a guarantor – typically after the creditor has tried to collect from the main debtor (depending on contract terms).
- As a surety – often treated like a co-debtor; creditor can directly pursue you.

Your relationship status (married, live-in, etc.) is irrelevant; the signature is what matters.

3. You authorized your partner as your agent

If there is proof (written or clear conduct) that:

You authorized your partner to borrow on your behalf, as your agent,
Then you can be bound by the resulting contract, just as if you signed it, at least up to the scope of that authority.

4. The debt is tied to joint business or partnership

If you and your partner:

Ran a business together (even informal), and
Represented yourselves as partners, or there is evidence of a partnership (joint capital, joint management, joint profits),

then:

Creditors of the partnership business may go after partnership assets, and sometimes partners personally, depending on the legal form and the circumstances.
Again, it’s the business relationship, not the romantic relationship, that creates liability.

5. Creditors going after co-owned property

Even if you’re not personally liable, your partner’s creditors may:

Go after your partner’s share in any co-owned property (e.g., house, car, appliances bought with joint funds).
This can lead to:
- Levy or sale of the property, followed by
- Partition, where you are entitled to your share of the proceeds.

This can be very disruptive and is one of the real risks of living with someone who accumulates heavy debt.

VII. Special Situations

1. One partner is still legally married to someone else

If one partner is still legally married to another person:

The live-in relationship will generally fall under Article 148.
Many properties acquired may actually belong to the legitimate marriage’s property regime, not the common-law couple.
Creditors might target:
- The debtor’s share in legitimate marital property, and/or
- Their share in any proved co-owned property with the live-in partner.

The innocent live-in partner is not automatically liable, but the property picture becomes more complex.

2. Foreign “common-law marriage” or cohabitation recognized abroad

If:

You and your partner formed a valid marriage or recognized union abroad under foreign law,
And it is not contrary to Philippine public policy,

then, upon proper proof and recognition, you might be treated as legally married in Philippine context. In that case, rules on spouses and property regimes (absolute community, conjugal partnership, etc.) may apply—this can influence liability for “family expenses” and debts contracted for family benefit.

But that is a separate, more technical question on recognition of foreign marriage/union.

VIII. Practical Scenarios

Scenario 1: Personal loan in one name

You are living with your partner. Your partner took a personal loan from a financing company. You did not sign anything. Collectors are now calling you and saying, “Since you’re living together, you’re also liable.”

Legally: You are not automatically liable.
What you can do:
- Calmly state you did not sign any contract with them.
- Ask for copies of the loan documents to verify if your name or signature appears.
- If harassment continues (threats, public shaming, contacting your employer), you may consider consulting a lawyer or seeking help from legal aid groups for possible violations of debt collection and privacy rules.

Scenario 2: House bought with joint funds, loan in one partner’s name

House & lot were paid by both of you, but mortgage/loan is in Partner A’s name only. Partner A stops paying; bank starts foreclosure.

Between you and Partner A: the house may be co-owned, depending on proof of contributions and the applicable article (147 or 148).
But as far as the bank is concerned:
- Their contract is with Partner A.
- The bank may foreclose the mortgage; your remedy is to assert your co-ownership and claim your share in the equity or proceeds.
You are not personally liable for any deficiency unless you also signed.

Scenario 3: You signed as “spouse” even though you’re not legally married

A loan form required “spouse’s signature,” and you signed that portion, even if you and your partner are only live-in.

The label “spouse” is less important than the legal effect of your signature.
If you signed in a way that clearly indicates:
- Co-borrower / co-maker ➜ You likely share liability.
- Guarantor / surety ➜ You may be liable under that guarantee.
It does not automatically make you legally married, but it can make you legally liable on the loan.

Scenario 4: Business run in partner’s name, but you actively manage

A small store is registered only in Partner A’s name (permits, receipts), but you actually manage, invest, and share profits. The store owes suppliers money.

Suppliers may primarily go after Partner A.
However, if they can show that you are effectively a partner, contributing capital and participating in management, you might be treated as a partner in fact, with corresponding liability, especially if you personally made promises or signed documents.

IX. How to Protect Yourself as a Common-Law Partner

Be very careful with your signature.
- Don’t sign anything you do not understand or haven’t read fully.
- Ask: Am I a borrower? Co-maker? Guarantor? Surety? These words matter.
Keep financial identities somewhat distinct.
- Separate bank accounts and credit lines can help track who owes what.
- If you share expenses, consider a simple written agreement for clarity.
Document your contributions to property.
- Keep receipts, bank transfer records, or simple acknowledgment letters.
- This makes it easier to prove your ownership share if a creditor targets property.
Talk openly about debts.
- Hidden debts can become shared problems when creditors start calling or property becomes at risk.
- Agree on how debts will be handled and what limits you are comfortable with.
Formalize business arrangements.
- If you’re running a business together, consider proper registration and written agreements outlining capital sharing, profit sharing, and liability.

X. If You’re Being Harassed for Your Partner’s Debt

If collectors are repeatedly calling or threatening you over debts that are not in your name, you can:

Ask for documentation.
- Request a copy of the loan agreement, promissory note, or credit card application.
Clarify your non-party status.
- Inform them (politely but firmly) you are not a party to the contract, and you do not acknowledge any personal liability.
Record incident details.
- Dates, times, names of collectors, and nature of the threats or statements.
Seek legal assistance.
- You may consult:
  - PAO (Public Attorney’s Office) if you qualify as an indigent,
  - Law school legal aid clinics, or
  - Private counsel or IBP (Integrated Bar of the Philippines) legal aid programs.

XI. Final Notes & Disclaimer

In Philippine law, common-law partners do not automatically share liability for each other’s debts. Liability usually comes from signing, guaranteeing, authorizing, or jointly running a business, or from having shared property that can be partly reached by creditors.
Each case is fact-sensitive: details like who signed what, when the debt was incurred, who contributed to which property, and whether one partner is still legally married to another person can change the analysis.

This article is general legal information, not a substitute for personal legal advice. If you or your partner are dealing with specific debts, collectors, or threatened foreclosure, it’s best to consult a lawyer or legal aid group, bringing all relevant documents, so you can get advice tailored to your exact situation.