In Philippine law, the default property regime for most marriages is either the Administrative Partnership of Gains (CPG) for marriages celebrated before August 3, 1988, or the Absolute Community of Property (ACP) for those celebrated thereafter. Under both regimes, real estate acquired during the marriage is generally presumed to be joint property.
However, circumstances often arise where spouses seek to convert these joint holdings into the sole ownership of one spouse. This process is governed by the Family Code of the Philippines and the Rules of Court, and it is strictly regulated to protect the rights of creditors and the family.
1. The General Rule: Immutability of Property Regimes
Once a marriage is celebrated, the property regime (ACP or CPG) becomes "immutable." This means spouses cannot simply sign a private contract to change how they own their properties. Any conversion from conjugal/community ownership to sole ownership must follow specific legal tracks.
2. Legal Grounds for Conversion
Conversion typically occurs through three primary legal avenues:
A. Judicial Separation of Property
Spouses may jointly file a verified petition in court to voluntarily dissolve their property regime. If the court grants the petition, the conjugal assets are liquidated, and specific properties may be adjudicated to one spouse as their exclusive (sole) property.
- Requirement: A liquidation of all family debts must occur first.
- Publicity: The judgment must be recorded in the local civil registry and the Registry of Deeds.
B. Judicial Partition
If the spouses have already obtained a decree of Legal Separation, Annulment, or Declaration of Nullity, the court will order the partition of the properties. The resulting Transfer Certificate of Title (TCT) will then be issued in the name of the specific spouse to whom the property was awarded.
C. Donation or Sale Between Spouses
Under Article 1490 and Article 133 of the Family Code, spouses are generally prohibited from selling or donating property to each other. There are only two exceptions:
- When a separation of property was agreed upon in the marriage settlements (pre-nuptial agreement).
- When there has been a judicial separation of property during the marriage. Without these conditions, any deed of sale or donation between spouses is void ab initio (void from the beginning).
3. The Role of the "Paraphernal" or "Capital" Claim
If a property was mistakenly registered as "Spouses A and B" but was actually acquired using one spouse's exclusive funds (e.g., through inheritance or a gift), the owning spouse can seek to correct the title.
- Process: This usually requires a Petition for Correction of Entry or a Declaratory Relief case to prove that the property is "Paraphernal" (wife’s exclusive) or "Capital" (husband’s exclusive).
- Evidence: The claimant must overcome the legal presumption that property acquired during marriage is conjugal. This requires "clear and convincing" evidence of the source of funds.
4. Procedure for Updating the Land Title
Once a legal basis (such as a Court Order or a notarized Partition Agreement following a court decree) is established, the following steps are taken at the Registry of Deeds (RD):
- Payment of Taxes: If the conversion involves a transfer (like in a partition), one must secure a Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR).
- Entry of the Court Order: A certified true copy of the Court Order and the Certificate of Finality must be presented to the RD.
- Cancellation of the Old Title: The RD will cancel the existing TCT (which lists both spouses) and issue a new TCT in the name of the sole owner.
- Annotation: If the property remains subject to certain conditions, the RD will annotate the basis of the sole ownership on the back of the title.
5. Critical Risks and Limitations
| Factor | Description |
|---|---|
| Creditors' Rights | Conversion cannot be used to defraud creditors. If the conjugal partnership has existing debts, the creditors can move to void the transfer of property to a single spouse. |
| The "Married To" Rule | In the Philippines, a title that says "Juan Dela Cruz, married to Maria Dela Cruz" does not necessarily mean it is conjugal; it might just describe civil status. However, if it says "Spouses Juan and Maria Dela Cruz," it is definitively treated as joint. |
| Constitutional Ban | If one spouse is a foreign national, they cannot own land in the Philippines. In cases of "conversion" following the end of a marriage, the land must go to the Filipino spouse or be sold to a qualified Filipino citizen. |
6. Summary of Requirements for the Registry of Deeds
To successfully reflect sole ownership on a title, the RD typically requires:
- The Owner’s Duplicate Copy of the Title.
- Judicial Decree (Finality of Nullity, Legal Separation, or Voluntary Dissolution).
- Approved Partition Plan (if only a portion of the land is being converted).
- BIR Tax Clearance (CAR).
- Transfer Tax Receipt from the Treasurer's Office.