When a married person dies in the Philippines, the surviving spouse and the heirs do not automatically “inherit the entire conjugal property.” The law requires a two-stage process:

Dissolve and liquidate the spouses’ property regime (community/conjugal partnership/separation).
Settle the decedent’s estate (what the deceased actually owned after liquidation) and distribute it by will (testate) or intestate succession (no will), subject to legitimes (mandatory shares of compulsory heirs).

Understanding the difference between conjugal/community property and exclusive property is the key to knowing what gets inherited and by whom.

1) Start here: What property regime governed the marriage?

A spouse’s death dissolves the marriage and triggers liquidation of the spouses’ property relations. Which rules apply depends on the marital property regime, usually one of these:

A. Absolute Community of Property (ACP) — the default for marriages on/after Aug. 3, 1988

If the spouses married without a valid marriage settlement (prenup) and the marriage took effect under the Family Code, ACP generally applies.

Core idea: With limited exceptions, property owned before and acquired during marriage becomes “community property”.

B. Conjugal Partnership of Gains (CPG) — common for marriages before the Family Code

For many marriages before the Family Code (and absent a marriage settlement), the default was CPG.

Core idea: Each spouse keeps their exclusive property, but the gains/properties acquired for consideration during marriage are generally conjugal.

C. Separation of Property (by prenup or court order)

Each spouse owns their property separately (though there can still be co-ownership if they buy together).

D. Other arrangements (e.g., property regime in marriage settlements, void marriages, unions without marriage)

These can change results significantly (for example, co-ownership rules may apply). The rest of this article focuses on the standard regimes: ACP/CPG/separation.

2) What counts as “exclusive” vs “conjugal/community” property?

A. Under Absolute Community of Property (ACP)

Community property (generally included in the community):

Properties owned by either spouse before marriage, and properties acquired during marriage, whether in one spouse’s name or both, except those categorized as exclusive below.
Wages/salaries, business income, fruits of property, and acquisitions for consideration during marriage are typically community.

Exclusive property (generally excluded from the community):

Property acquired during marriage by gratuitous title (donation or inheritance) by one spouse, and the fruits/income of such property are treated according to nuanced rules and classification.
Property for personal and exclusive use, except jewelry (commonly treated as community).
Property acquired before marriage by a spouse’s legitimate descendants? (Certain rules can apply depending on how property is brought into the community; classification can be fact-sensitive.)
Property excluded by a valid marriage settlement (prenup).

Practical note: Under ACP, the presumption leans heavily toward “community,” so proving “exclusive” often requires documents showing the mode of acquisition (e.g., deed showing inherited/donated, or proof of exclusive funds and intent where relevant).

B. Under Conjugal Partnership of Gains (CPG)

Conjugal property (typical inclusions):

Property acquired for consideration during marriage (purchases, swaps, etc.), even if titled in one spouse’s name, unless proven exclusive.
Net fruits/income of exclusive property of either spouse during marriage.
Salaries, wages, professional/business income during marriage.
Improvements and certain increases in value can have special treatment (reimbursements/ownership rules may apply depending on source of funds).

Exclusive property (typical inclusions):

Property owned before marriage.
Property acquired during marriage by gratuitous title (inheritance/donation) by one spouse.
Property acquired during marriage using exclusive funds, if traceable and properly characterized.
Property for personal and exclusive use (with common exceptions).

C. Under Separation of Property

There is no conjugal/community mass to liquidate (unless there is a separate co-owned property). The decedent’s estate is basically:

the decedent’s sole properties, plus
the decedent’s share in co-owned properties (e.g., 50% if jointly acquired and equal shares, unless proven otherwise).

3) What happens immediately upon death: dissolution and liquidation first

Why liquidation comes before inheritance

The heirs inherit only what belonged to the deceased after the marital property regime is settled. This is where many disputes arise: heirs sometimes claim “half of everything,” but the law requires identifying:

The surviving spouse’s share (owned by the spouse, not inherited), and
The decedent’s net estate (what gets inherited).

Basic liquidation sequence (conceptually)

While details vary by regime and case, the usual sequence is:

Inventory and valuation of all properties and obligations.
Pay obligations chargeable against the community/conjugal partnership (as applicable), including certain debts incurred during marriage that legally bind the community/conjugal assets.
Reimbursements and credits between the spouses (e.g., if one spouse’s exclusive funds benefited community property, or vice versa).
Divide the net remainder:
- In ACP: generally 50% to surviving spouse, 50% to the decedent (subject to reimbursements/adjustments).
- In CPG: return exclusive properties; then divide net conjugal gains generally 50/50 after settling obligations.
The decedent’s estate consists of:
- the decedent’s share in the community/conjugal net, plus
- the decedent’s exclusive properties,
- minus debts chargeable to the estate (not already settled in liquidation).

Only after this do you distribute inheritance.

4) “Conjugal property” is not automatically inherited 50/50 by heirs

A common misconception:

“When the husband dies, the children inherit the conjugal property.”

More accurate:

The surviving spouse keeps their share of community/conjugal net as owner.
The heirs inherit only the deceased spouse’s share of the net community/conjugal property plus the deceased’s exclusive properties (net of estate debts).
The surviving spouse may also be an heir, receiving an additional inheritance share from the decedent’s estate.

So the surviving spouse can receive property in two different capacities:

As owner (their half share from liquidation), and
As heir (their inheritance share from the decedent’s estate).

5) Who inherits: compulsory heirs and the concept of legitime

Philippine succession law protects certain heirs called compulsory heirs, who cannot be deprived of their legitime (minimum mandatory share) except in limited cases of valid disinheritance.

Common compulsory heirs

Depending on who survives the decedent:

Legitimate children and descendants
Legitimate parents and ascendants (if no legitimate children/descendants)
Surviving spouse
Illegitimate children (they have legitimes; their shares follow special rules)

If there is a will, the testator can distribute the “free portion,” but must respect legitimes.

If there is no will, distribution follows intestate succession rules.

6) Intestate succession: common share patterns involving the surviving spouse

Below are the commonly applied intestate outcomes for the decedent’s estate (remember: estate is after liquidation, not “all conjugal property”).

A. Surviving spouse + legitimate children (no will)

The surviving spouse inherits a share equal to the share of one legitimate child.
The legitimate children share the rest equally (with spouse counted as “one child” for partition purposes).

Example (estate only): Estate = ₱12,000,000. Surviving spouse + 3 legitimate children. Divide into 4 equal shares (spouse + 3 children) → ₱3,000,000 each.

B. Surviving spouse + legitimate parents/ascendants (and no legitimate children)

Estate is typically divided 50% to the surviving spouse and 50% to the legitimate parents/ascendants (shared among them according to rules of ascendant succession).

C. Surviving spouse only (no descendants, no ascendants)

The surviving spouse generally inherits the entire estate.

D. Surviving spouse + illegitimate children (no legitimate children)

A commonly applied rule is: 1/3 to the surviving spouse, 2/3 to the illegitimate children, shared equally among them.

E. Mixtures: surviving spouse + legitimate children + illegitimate children

Legitimate children and spouse divide as in (A), but illegitimate children receive shares that are, as a rule, one-half of a legitimate child’s share, subject to the structure of the particular succession scenario.

Important: Illegitimate-child computations can get technical because the law distinguishes legitimate and illegitimate shares and how they interact with the spouse’s portion. In practice, lawyers compute these by determining the “unit shares” (legitimate child = 1 unit; illegitimate child = 1/2 unit; spouse often = 1 unit in certain concurrences), then allocating the estate proportionally.

7) Testate succession (with a will): what changes—and what cannot change

If there is a will:

The decedent may distribute property (including specific devises/legacies), but
The will must respect legitimes of compulsory heirs.

A. What the will can do

Assign specific properties to specific heirs/beneficiaries.
Create substitutions, conditions (within limits), and other testamentary provisions.
Use the free portion to favor someone (including the surviving spouse, one child, a charity, etc.).

B. What the will cannot do

Reduce compulsory heirs below their legitime, unless a valid disinheritance applies and is properly done.
Dispose of property the decedent did not own (e.g., the surviving spouse’s half after liquidation), unless it is part of the decedent’s estate.

C. Collation, advancements, and equalization

Gifts made during lifetime to compulsory heirs may need to be brought into account (collation) to compute legitimes and equalize shares, depending on the type of donation and the parties involved.

8) Special issues that often decide the case

A. Titled in one spouse’s name: does that make it exclusive?

Not necessarily. Title is evidence of ownership, but classification depends on:

When acquired,
How acquired (purchase vs inheritance/donation),
Source of funds,
Applicable property regime,
Whether there’s proof overcoming legal presumptions.

B. Properties acquired during separation in fact (but still married)

Mere separation (living apart) does not automatically change the property regime. Without a court decree or valid agreement recognized by law, acquisitions during marriage may still be community/conjugal depending on the regime.

C. Debts: which debts reduce inheritance?

Some obligations are chargeable against:

the community/conjugal partnership (paid before dividing net),
or the decedent’s estate (reducing what heirs receive).

Whether a debt is chargeable against the partnership or only the debtor spouse’s share can be fact-sensitive (purpose, consent, benefit to the family, and documentation matter).

D. Family home

The “family home” has special protections and rules:

It is generally exempt from execution except for certain kinds of obligations.
Upon death, rights of beneficiaries/heirs and rules on partition/sale can be constrained by family home protections and the presence of qualified beneficiaries.

E. Waiver, renunciation, and acceptance

Heirs (including the surviving spouse as heir) may:

Accept inheritance,
Repudiate/renounce it (with formal requirements),
Assign hereditary rights (often with tax and documentation consequences).

F. When a “sale” is challenged as donation/disguised transfer

Transfers shortly before death sometimes get attacked as simulated sales meant to reduce legitimes. Courts examine consideration, intent, capacity, and surrounding circumstances.

G. Second marriages, multiple families, and compulsory heirs from different relationships

If the decedent has:

children from prior relationships,
a surviving spouse from a later marriage,
illegitimate children, distribution can become complex, particularly when property classification and legitimes intersect.

9) Settlement process: how inheritance is actually implemented

A. Extrajudicial settlement (no court case)

Usually possible when:

The decedent left no will, and
The heirs are all of age (or properly represented), and
There are no major disputes.

This is commonly done through a notarized Deed of Extrajudicial Settlement (sometimes with sale/partition), publication requirements, and then transfers via the Register of Deeds and tax clearances.

B. Judicial settlement (court)

Usually needed when:

There is a will (probate required),
There are disputes among heirs,
There are questions on legitimacy/heirship,
Creditors’ claims are involved,
Complex property classification issues require adjudication.

C. Estate tax and transfer requirements

In practice, transferring title to heirs commonly requires:

Tax filings and clearances,
Proof of settlement,
Updated titles/tax declarations,
Compliance with registry requirements.

Failure to settle can “freeze” property: heirs may occupy or informally divide, but legally transferring/selling often becomes difficult without proper settlement.

10) Worked example: ACP with conjugal/community property and exclusive inheritance

Facts:

Married under ACP.
Properties:
1. House bought during marriage: ₱10M (community)
2. Farmland inherited by husband during marriage: ₱6M (husband’s exclusive)
3. Bank deposits from salaries: ₱4M (community)
Husband dies. Survived by wife and 2 legitimate children. No will.
Assume net community obligations are already settled for simplicity.

Step 1: Liquidate ACP Community total: House (₱10M) + deposits (₱4M) = ₱14M Divide net community:

Wife owns ₱7M (not inheritance)
Husband’s share ₱7M goes to his estate

Step 2: Determine husband’s estate Husband’s estate = ₱7M (his half of community) + ₱6M (exclusive inherited farmland) = ₱13M

Step 3: Intestate distribution (wife + 2 legitimate children) Wife gets a share equal to one child → divide ₱13M into 3 equal shares:

Wife inherits ₱4.333M
Child 1 inherits ₱4.333M
Child 2 inherits ₱4.333M

What wife ends up with overall

As owner from ACP liquidation: ₱7M
As heir from husband’s estate: ₱4.333M Total value interest (before considering which assets specifically she receives): ₱11.333M

This illustrates why the surviving spouse often ends up with more than “half”—because they receive both an ownership share and an inheritance share.

11) Common pitfalls and practical takeaways

Always identify the property regime first. Many “inheritance” disputes are actually classification disputes.
Liquidation is mandatory in principle. You cannot correctly compute inheritance without first determining the net community/conjugal mass and the decedent’s net estate.
Heirs inherit only the decedent’s estate. The surviving spouse’s half of the community/conjugal net is not part of the inheritance.
Titles don’t always tell the full story. Timing, source of funds, and mode of acquisition matter.
Illegitimate-child shares are legally protected. They have legitimes and specific share rules.
A will cannot ignore legitimes. Even with a will, compulsory heirs retain minimum shares unless a valid disinheritance applies.

12) Quick checklist for a spouse’s death (Philippine setting)

Gather documents: marriage certificate, death certificate, titles, tax declarations, bank records, deeds, proof of inheritance/donation, loan papers.
Determine marital regime: ACP/CPG/separation/prenup.
Make an inventory and classify each asset: community/conjugal vs exclusive.
Identify obligations and whether they charge the partnership or the estate.
Compute the decedent’s net estate after liquidation.
Identify heirs (legitimate/illegitimate children, spouse, ascendants, etc.).
Apply will or intestate rules, respecting legitimes.
Choose settlement route: extrajudicial (if eligible) or judicial (if required).
Comply with tax and registry requirements for transfers.