Does Donated Property Remain Exclusive When the Donee Marries?
Philippine property regimes explained (Family Code focus)
Short answer. Yes—as a rule, property you receive by donation (or inheritance) is your exclusive property even after you marry. There are important qualifications about fruits/income, donor stipulations, replacements, improvements, commingling, and the chosen property regime. This article walks through all of them in plain English, with practical examples.
1) Which law and regime apply to your marriage?
- Family Code (since Aug. 3, 1988) — default regime is Absolute Community of Property (ACP) if you have no prenuptial agreement.
- Civil Code (marriages before Aug. 3, 1988) — default regime was Conjugal Partnership of Gains (CPG) unless spouses agreed otherwise.
- Prenuptial agreement (a.k.a. marriage settlements) — you may validly choose Complete Separation of Property or CPG (even today). The agreement must be in writing, signed, and executed before the wedding; register it to bind third persons.
- Void/voidable marriages — special co-ownership rules (Articles 147/148, Family Code) may apply; see §10.
2) The core rule on donations (and inheritances)
In Philippine law, properties acquired by gratuitous title—donations, legacies, and devises—are, by default, exclusive to the recipient spouse (the donee), whether acquired before or during the marriage. The title or TCT name does not control the classification; the mode of acquisition does.
Key corollary: A donor or testator may expressly direct in the donation/will that the property shall belong to the community/conjugal fund instead. If such an express stipulation exists and is validly accepted, the gift joins the common estate.
3) What happens to the fruits and income (rent, dividends, interest)?
This is the part most people miss.
Under ACP (the default today):
- The principal donated property is exclusive of the donee.
- By default, the fruits/income (e.g., rent from a donated condo, bank interest on the donated cash, stock dividends from donated shares) form part of the community—unless the donor/testator explicitly says in the instrument that the fruits/income shall also be exclusive to the donee.
Under CPG (older default; or if chosen in a prenup):
- The principal donated property is also exclusive.
- By default, fruits/income are conjugal partnership property (shared), because the partnership is designed to capture gains during marriage.
- Donor language can be crafted to reserve fruits to the donee, but in practice you should expect courts to start from the presumption that fruits are conjugal unless a clear, lawful stipulation says otherwise.
Under Complete Separation: both principal and fruits/income from a donation belong to the donee alone, unless the donor directs a gift to both spouses or the spouses later co-mix the funds.
Practical tip: If you want fruits/income to remain exclusive under ACP/CPG, the donation instrument should say so expressly (e.g., “together with all fruits and income therefrom, which shall remain the exclusive property of the donee spouse”).
4) Donations to one spouse vs to both spouses
- To one spouse only: the principal is exclusive to that spouse (subject to fruits rules above).
- To both spouses jointly: the donation becomes part of the common estate (ACP or CPG) or is co-owned 50/50 under Separation, depending on the regime and the language of the instrument.
- “To the absolute community” or “to the conjugal partnership”: the donor can directly contribute to the common fund.
5) Donations propter nuptias (gifts in consideration of marriage)
- These are donations by third persons (e.g., parents gifting a house because the couple is marrying) or between the future spouses themselves before the wedding and in view of the marriage.
- They are valid within legal limits (e.g., no donation of future property; must be in proper form; subject to later revocation grounds like non-fulfillment of conditions or legal separation in some cases).
- Classification after the wedding follows the same rules: exclusive if given to one spouse (unless the instrument puts it in the common fund), and shared if given to both or to the community/partnership.
Note: Donations between spouses during the marriage are generally void (except moderate gifts on family or social occasions). If spouses want to benefit each other substantially, they should do so before the wedding via marriage settlements/donations propter nuptias, or use co-ownership/partition tools consistent with the law.
6) Replacements, exchanges, and traceability
- If an exclusive donated property is sold and the proceeds are used to buy a new asset, the replacement remains exclusive—if you can prove the trace (e.g., deed of sale, bank trail).
- The same applies to redemption, barter, or exchange involving exclusive property.
- Passive appreciation (e.g., market value increases of the donated land) remains part of the exclusive asset.
- Active improvements paid with community funds (e.g., you build a second floor using community money) give rise to a reimbursement claim in favor of the community at liquidation, but do not change the classification of the underlying exclusive property.
7) Commingling and improvements: keep clean records
If exclusive and common funds are mixed so that you cannot reasonably distinguish what paid for what, courts tend to treat acquisitions during marriage as common, subject to proof to the contrary.
To preserve exclusivity:
- Keep donated assets in separate accounts or ledger sub-accounts.
- If you reinvest or replace, document the source (bank statements, checks, sale proceeds).
- For real property, consider annotations and keep copies of the deed of donation and acceptance.
8) Fruits vs. accessions: examples
- Rent from a donated condo = fruit → generally community/conjugal (unless reserved by donor; or Separation regime).
- Cash dividends from donated shares = fruit → generally community/conjugal (same caveat).
- Stock splits/stock rights resulting from ownership may be treated as accessions tied to the principal; treatment can vary, but many courts see dividends as fruits and splits as accessions—keep donor language clear if you want exclusivity over both.
- Timber/produce from donated farmland = natural/industrial fruits → generally community/conjugal absent reservation.
9) Administration, alienation, liabilities
The exclusive owner-spouse administers exclusive property and may dispose of it without the other spouse’s consent, except:
- If it is the family home, or
- The law otherwise requires both spouses’ consent to protect family interests.
Community/conjugal obligations are generally not chargeable to a spouse’s exclusive property, except in specific situations defined by law (e.g., when the community is benefited and insufficient).
10) Special situations
- Void marriages / cohabitation (Arts. 147/148): Gifts to one partner remain that partner’s exclusive property. Properties acquired through joint efforts are co-owned in proportion to contribution (or equally, if contributions cannot be proved under Art. 147).
- Foreign spouses / land: Constitutional and statutory restrictions on foreign ownership of land remain separate questions; the mode of acquisition (gratuitous vs onerous) still governs classification between spouses.
11) Formalities for donations
- Movables of small value: may be done orally with simultaneous delivery; otherwise, put it in writing.
- Movables of value and immovables (real property): use a public instrument (notarized); donee’s acceptance is required (same or separate instrument, with proper notice).
- Register real-property donations with the Registry of Deeds to protect against third persons; registration does not determine classification, but it protects your title.
- For inheritances, keep the will/probate records or extrajudicial settlement papers to prove gratuitous acquisition.
12) Liquidation on dissolution (death, annulment, legal separation)
- Exclusive assets go back to the owner-spouse.
- Community/conjugal assets (including fruits/income that flowed into the common fund) are liquidated and divided per law.
- Reimbursements are settled (e.g., community reimbursed for improving an exclusive property; or the exclusive estate reimbursed if it paid a community debt).
13) Worked examples
Example A (ACP; no prenup). Lara receives a donated lot from her parents before marriage. After marriage, she rents the lot for ₱40,000/month.
- Lot = exclusive to Lara.
- Rent = community property (shared), unless the donation deed clearly reserved the fruits to Lara alone.
Example B (Replacement; ACP). Rico inherits ₱3,000,000 during marriage and buys a condo paid entirely from that inheritance.
- Condo = exclusive (keep the bank trail, deed of sale).
- Monthly rent from condo = community, unless reserved by the donor/testator.
Example C (CPG via prenup). Ana is donated shares during marriage.
- Shares = exclusive.
- Cash dividends = conjugal by default.
Example D (Complete Separation). Miguel is donated a delivery van; he runs a sideline.
- Van + its income = Miguel’s exclusive. If he later titles a new van bought with those earnings, it remains exclusive (trace it!).
14) Practical checklist for donees
- Keep the instrument (donation/will/settlement) and acceptance; scan it; annotate the TCT if real property.
- If you want fruits to remain exclusive, ensure the donation expressly says so.
- Segregate donated funds and document replacements/exchanges.
- Avoid commingling with community funds; if you must, keep a clear ledger.
- For big moves (sale, mortgage, family-home use), consider the consent rules and reimbursement effects.
- Remember: donations between spouses during marriage are void (except moderate gifts on special occasions). Use prenups or third-party donations instead.
15) Frequently asked questions
Q: Title says “Spouses A & B,” but the condo was donated to me alone. Is it still exclusive? A: Likely yes. Classification follows the mode of acquisition, not the title caption. The deed of donation and your paper trail matter most.
Q: If my parents donate “to the spouses,” can they still reserve the fruits to me? A: If the donation is to both spouses or to the common fund, it is shared. To keep exclusivity (including fruits), the donation should be to you alone with explicit reservation of fruits.
Q: We renovated my donated house with community funds. Who owns the house? A: The house remains your exclusive property, but the community gets reimbursed for expenditures and/or for increases attributable to community funds per liquidation rules.
Q: Do passive increases in value of my donated land become community? A: No. Passive appreciation stays with the exclusive owner.
Final note
This article summarizes settled principles under the Family Code and related civil-law doctrines. Facts—and precise instrument wording—drive outcomes. For substantial assets, have a Philippine lawyer review your donation/will language, prenup, and paper trail so your intent on principal and fruits is honored.