Deed of Donation as Conjugal (or Exclusive) Property in the Philippines

This article explains how donations are treated under Philippine law depending on the spouses’ property regime, the form and content of the deed, and related limits on donations. It synthesizes Family Code and Civil Code rules, standard land-registration practice, and common drafting approaches used by practitioners.

1) First things first: determine the spouses’ property regime

Under Philippine law, how a donated asset is classified (conjugal/community vs. exclusive) depends primarily on the couple’s property relations:

Absolute Community of Property (ACP) – the default for marriages on or after 3 August 1988 unless a valid marriage settlement says otherwise.
Conjugal Partnership of Gains (CPG) – the default for marriages before 3 August 1988, or when the spouses validly agree to CPG in marriage settlements.
Separation of Property – only if validly agreed upon in marriage settlements.

Why it matters: the default classification of property received by donation differs between ACP and CPG, and even within ACP there are important caveats about fruits and income.

2) General rules on donations to spouses

A. Donations between spouses (during marriage)

Void, as a rule. The Family Code prohibits donations between spouses during the marriage (except moderate gifts on occasions of family rejoicing).
Rationale: to prevent undue advantage, fraud against creditors or compulsory heirs, and to preserve equality within marriage.

B. Donations propter nuptias (by reason of marriage)

Valid if executed in consideration of an impending marriage (e.g., a fiancé gives property to the other fiancé, or a third person gives property because the marriage will take place).
Distinct rules apply on revocation and limits (see §8).

C. Donations from third persons to a spouse or to both spouses

These are common—and the deed’s wording is crucial to classification (see §4–§6).

3) Forms and formalities for a valid donation

Movables:
- Small value: informal delivery may suffice.
- If value exceeds ₱5,000: donation and acceptance must be in writing.
Immovables (land/condominium/real rights):
- Public instrument (notarized deed) precisely describing the property;
- Acceptance by the donee in the same deed or in a separate notarized instrument;
- If acceptance is in a separate instrument, the donor must be notified in writing, and the fact of notification must be noted in both instruments.

Without a valid acceptance, the donation of immovables is ineffective.

4) Donations under Absolute Community of Property (ACP)

Default classification

Property acquired by gratuitous title (donation or inheritance) by either spouse is, by default, the exclusive (separate) property of that donee-spouse.
Fruits and income of exclusive properties are, by default, community (ACP) property.

How the deed can change this

A donor may expressly declare in the deed that:
1. The donation shall form part of the absolute community; and/or
2. The fruits and income of the donated property shall also be exclusive (overriding the default rule that fruits belong to the community).

Donations to both spouses

If the deed states the property is donated “to the Spouses A and B, married to each other” as part of their absolute community, it enters the ACP.
If the deed simply donates to “Spouses A and B” without stating it forms part of the ACP, practitioners treat the asset as co-owned by them but still exclusive of the ACP unless the donor’s intent to benefit the community is clear. Best practice is to say it expressly.

Practical drafting tip (ACP): Include an explicit clause such as:

“This donation shall form part of the Absolute Community of Property of the spouses, and the fruits and income thereof shall likewise belong to the community.” —or—
“This donation is made exclusively to [Name of Donee-Spouse], and the fruits and income thereof shall likewise be exclusive.” Clarity here avoids fights later.

5) Donations under Conjugal Partnership of Gains (CPG)

Default classification

The conjugal partnership generally consists of fruits of separate properties and properties acquired for value (onerous title) during the marriage.
Properties acquired by gratuitous title (donations or inheritances) belong to the exclusive property of the donee-spouse by default.

Donations to both spouses under CPG

If a third person donates to both spouses, two approaches may arise in practice:
- (a) The property becomes a co-owned exclusive asset of the spouses (each holding an undivided share) outside the CPG; or
- (b) If the donor expressly donates to the conjugal partnership of gains (naming it and stating the intent), the property is conjugal.
To avoid ambiguity, the deed should expressly name the conjugal partnership as donee (e.g., “to the Conjugal Partnership of Gains of Spouses A and B”).

Practical drafting tip (CPG): Add a clause like:

“This donation is made to the Conjugal Partnership of Gains of Spouses A and B, and shall be conjugal property.” If the donor intends exclusivity:
“This donation is made exclusively to [Name of Donee-Spouse], and shall not form part of the conjugal partnership.”

6) Separation of property

Where spouses validly adopt separation of property, donated assets belong to the donee as his/her separate property unless the deed creates a co-ownership or a trust.
If a donor intends to benefit both, the deed should say they take as co-owners in stated shares.

7) Registration, titling, and proof against third persons

For immovables:

Notarization and acceptance (see §3).
Register the deed with the Register of Deeds where the property is located.
Transfer the title/tax declaration accordingly:
- Exclusive to one spouse: issue TCT/CCT in that spouse’s name alone (often with the marital status noted).
- Community/Conjugal:
  - ACP: title typically in the names of both spouses “as spouses” or with a parenthetical “as part of their Absolute Community of Property.”
  - CPG: if donated to the conjugal partnership, annotate that fact or state it expressly in the ownership line; if merely to both spouses as co-owners, title can be “Spouses A and B, married to each other,” without conjugal wording.
Annotation of conditions/charges: If the donation is conditional, with reservation, or subject to reversion, annotate the condition.

Proper registration protects the donee’s/conjugal title against third persons and ensures correct tax mapping and estate planning treatment.

8) Limits, conditions, revocation, and reduction

Reduction for inofficiousness: Donations can be reduced if they impair legitimes of compulsory heirs (e.g., legitimate children, spouse, parents).
Revocation for ingratitude: Possible on statutory grounds (e.g., serious offenses by the donee against the donor).
Resolutory/condition precedent: If the donation is conditional (e.g., keep property as family home; use for a scholarship), non-fulfillment may revert ownership.
Donations propter nuptias: May be revoked for causes like non-celebration of the marriage or as provided by law.
Prohibited donees: Donations may be void when made to persons disqualified (e.g., certain relationships of undue influence, or donations between spouses during the marriage—see §2A).

9) Fruits, income, improvements, and replacements

ACP default: Fruits/income of exclusive property belong to the community, unless the donor/testator expressly provides otherwise.
CPG default: Fruits/income of a spouse’s exclusive property are conjugal (they fall into the partnership as “gains”).
Improvements:
- If the community/conjugal funds improve an exclusive property, reimbursement rules apply during liquidation (the community may be reimbursed for expenditures that increased value).
- If an exclusive property’s funds improve a conjugal/community property, the exclusive owner may have a reimbursement or lien.
Substitutions/Replacements: If an exclusive property is exchanged (e.g., via dación en pago) for another asset, the substituted property usually retains its classification (exclusive) if traceable. Keep paper trails in the deed(s).

10) Creditors and family-home considerations

Fraud of creditors: A donation that leaves the donor insolvent can be rescinded by creditors under general rescissory provisions.
Family home: If the donated immovable is constituted as a family home, it gains statutory protections (subject to legal exceptions and caps). Title wording does not by itself create a family home; follow statutory constitution/use requirements.

11) Common deed clauses to get the classification right

Make it conjugal/community
- “The Donor hereby conveys the property to the Absolute Community of Property of Spouses A and B, and declares that all fruits and income thereof shall likewise be community property.”
- “… to the Conjugal Partnership of Gains of Spouses A and B, the property to be held as conjugal property.”
Keep it exclusive
- “The Donor hereby donates the property exclusively to [Name of Donee-Spouse], which shall not form part of the [ACP/CPG]. The fruits and income thereof shall likewise be exclusive to the Donee.”
Donate to both spouses, as co-owners (exclusive of regime)
- “… in equal undivided shares to Spouses A and B, as their co-owned exclusive property, and not as part of their [ACP/CPG].”
Conditions and reversion
- “Subject to the condition that the property shall be used as [purpose]. Breach shall operate as automatic reversion to the Donor, annotatable on the title.”

12) Special topics

Donations from persons in illicit cohabitation: Donations between persons living together as spouses without a valid marriage can be void under the Family Code.
Donations to minors/spouses with guardianship issues: Acceptance must be through a legal representative (parent/guardian), with safeguards to avoid self-dealing.
Trusts: A donor can donate to a trust for the spouses or their children; the beneficial interest (and income) will follow the trust terms rather than default marital-property rules.
Succession planning: Large lifetime gifts may affect collation and legitime calculations in the donor’s future estate.

13) Taxes and fees (high-level only)

Donor’s tax generally applies to inter vivos donations, subject to prevailing thresholds/rates and exemptions at the time of donation.
Documentary stamp tax, transfer fees, and real property taxes may be implicated for immovables.
Estate tax applies to mortis causa dispositions.

Because tax rules change, review the current tax code/regulations and local ordinances when drafting or accepting a donation.

14) Checklist for lawyers and notaries

Identify the spouses’ property regime (marriage date, marriage settlements).
Confirm capacity of donor and donee; check disqualifications.
Choose the correct form (public instrument for immovables; written form and acceptance as required).
Draft classification language deliberately (ACP/CPG/co-ownership/exclusive; fruits & income).
State conditions (if any) and remedies (reversion, rescission).
Secure acceptance and, if separate, written donor notification; note in both instruments.
Acknowledge and notarize properly (complete descriptions; marital status; tax declarations).
Register with the Register of Deeds; ensure the title reflects the intended classification.
Attend to taxes and fees; obtain BIR clearances and LGU permits as needed.
Keep a paper trail (proof of acceptance; annotations; supporting affidavits).

15) Key takeaways

In ACP, a donation to one spouse is exclusive by default, but fruits/income are community unless the donor says otherwise.
In CPG, donations are exclusive by default; to make them conjugal, the deed must expressly donate to the conjugal partnership.
Donations between spouses during marriage are void (save for moderate gifts).
The exact wording of the deed—and proper registration—often decides future disputes.

Final word

When drafting or receiving a deed of donation that could affect conjugal/community rights, precision is everything: say what you mean (exclusive vs. community/conjugal, fruits, conditions), follow formalities, and register accordingly. If substantial value or complex family situations are involved, pair the deed with updated estate and tax planning to keep the gift from becoming tomorrow’s litigation.