(Philippine context)

Disclaimer: This is general legal information, not a substitute for specific advice from a Philippine lawyer who can review actual documents and facts.

I. Why Asset Protection Matters More for Same-Sex Couples

In the Philippines, same-sex couples face a structural problem: the law does not recognize their relationship as a marriage or civil union. That means:

No absolute community or conjugal partnership of gains regime.
No automatic inheritance rights as a “spouse.”
No statutory benefits that are reserved for “spouses” or “family” (SSS, GSIS, legitime, tax exemptions, etc.).

So, where opposite-sex married couples can rely on default rules, same-sex couples must actively plan. Asset protection in this context means:

Making sure each partner’s contributions are recognized.
Preventing families of origin from wiping out a surviving partner.
Protecting assets from creditors, business risks, and disputes on break-up.
Ensuring a partner has practical control (e.g., bank accounts, housing, access to information) if one becomes incapacitated or dies.

The tools exist—but they are indirect. You don’t protect the relationship (since it has no legal status); you protect property, contracts, and succession rights around it.

II. Legal Status of Same-Sex Relationships in the Philippines

No same-sex marriage or civil union (as of now).
- The Family Code restricts marriage to a man and a woman.
- Courts have not yet recognized same-sex marriages, even if validly contracted abroad by Filipino citizens.
- Petitions seeking recognition have been dismissed, leaving the prohibition intact.
Constitutional rights exist, but are indirect.
- Rights to equal protection, privacy, and association apply to LGBTQ+ persons as individuals.
- These help protect against arbitrary discrimination, but they do not automatically create a legal status similar to marriage.
Local ordinances (e.g., anti-discrimination, partnerships).
- Some cities and local governments have SOGIE anti-discrimination ordinances and symbolic recognition of “domestic partners” for local benefits (hospital visitation, LGU employee benefits, etc.).
- These ordinances cannot override national law on marriage, property regimes, succession, or taxation.
- Asset protection planning must still rely on the Civil Code, Family Code, tax laws, banking rules, and national regulations.
Practical result: The law treats most same-sex couples as two unrelated individuals. Property consequences only arise from:
- Co-ownership,
- Contracts,
- Wills and donations, and
- Statutory schemes that allow beneficiary designations (insurance, some pensions, etc.).

III. What Happens by Default if You Live Together?

Without any planning, the default framework is:

1. No conjugal or community property

The property regimes in the Family Code (absolute community, conjugal partnership, complete separation) apply only to valid marriages. For same-sex couples:

Each partner owns whatever is titled in his/her personal name, or acquired with personal funds.
There is no automatic presumption that everything acquired during cohabitation is shared.

2. Co-ownership under the Civil Code

The Civil Code on co-ownership applies when two or more persons own a thing together:

Co-ownership may be express (e.g., TCT in both names, written co-ownership agreement) or implied (joint purchase, joint contributions).
Presumption: If there is no proof of unequal shares, co-owners are generally presumed to own in equal portions.
You can prove contributions via:
- bank transfer records
- receipts
- written acknowledgments
- construction contracts
- loan documents

Problem: Many same-sex couples do not document contributions. When property is acquired in only one partner’s name, the other may be forced to fight an uphill battle to prove co-ownership.

3. Labor vs. financial contributions

Household work (cooking, cleaning, caring for partner, “supporting” partner’s career) is not automatically treated as property contribution in Philippine law.

Unlike community property regimes in some countries, unpaid domestic work here does not by itself create an ownership share in assets.
This is harsh but important: without documentation or contractual arrangements, the partner who did not pay or is not on the title may walk away with nothing.

IV. Foundations: Documentation & Notarization

Before going into specific tools, two general principles:

Put it in writing.
- Co-ownership agreements
- Acknowledgments of contributions
- Loan agreements (if one partner “finances” the other)
- Promissory notes
- Shared expense records
Use public instruments and notarization whenever possible.
- For real property: Deeds of sale, donation, co-ownership agreements, mortgages must be in public instruments and registered with the Registry of Deeds.
- Notarization elevates a private writing to a public document, making it more credible in court and effective against third parties when recorded.

Without paper, you will rely on oral testimony and circumstantial evidence—which is risky, especially if the other partner or his/her family contests your claim.

V. Co-Ownership & Cohabitation Agreements

A co-ownership or cohabitation agreement is the single most important planning tool for same-sex couples.

1. What it can cover

A well-drafted agreement can:

Identify which assets are co-owned, and in what proportions.
Distinguish:
- Exclusive property of each partner (acquired before the relationship, inherited, gifted to one only).
- Shared property (acquired during the relationship, joint purchases).
Set rules on:
- How acquisitions are funded.
- How mortgage payments and repairs are split.
- What happens if one partner pays more (reimbursement, increased share).
- Who can live in the property and under what conditions.
- What happens on break-up or death (buy-out, sale, division).
Include non-property items like:
- Confidentiality clauses.
- Dispute resolution (mediation, arbitration before going to court).

2. Form and formalities

For movable property (furniture, vehicles, investments): A notarized agreement is usually enough.
For real property:
- The agreement should be in a public instrument and registered in the Registry of Deeds as an annotation on the title.
- If not annotated, it may still bind the parties, but it is harder to assert against third parties (creditors, buyers in good faith).

3. Limitations

The agreement cannot mimic a marriage in ways that directly contradict mandatory laws (e.g., you cannot create your own “legitime” or mandatory heir status).
It cannot bind third parties (e.g., SSS/GSIS cannot be forced to treat a partner as a spouse just because of your contract).
Any clause contrary to law, morals, or public policy can be voided (e.g., agreements meant purely to conceal assets from creditors).

VI. Wills and Succession Planning

Since same-sex partners are not “compulsory heirs,” testamentary planning is critical.

1. Who are compulsory heirs?

Under the Civil Code, compulsory heirs include:

Legitimate children (and descendants)
Legitimate parents (and ascendants), if no descendants
The legal spouse (a same-sex partner is not one)
Illegitimate children

They are entitled to a legitime—a reserved portion of the estate that cannot be taken away by will (except in strict disinheritance cases).

A same-sex partner is at best a voluntary heir or legatee, entitled only to the free portion (the part not reserved by law).

2. Making a will in favor of a same-sex partner

You can:

Name your partner as:
- Heir to a portion of your estate (e.g., “I institute X as heir to one-half of my free portion”).
- Legatee of specific properties (e.g., “I give my condominium in [address] to X”).
Impose terms:
- Usufruct (right to use and enjoy property for life) for the partner.
- Rights of habitation (to live in a house for life).
- Conditions (e.g., transfers only after your parents’ lifetime, etc.), subject to statutory limits.

Forms of wills:

Notarial will (most common in practice)
- Must be in writing, in a language the testator knows.
- Signed by the testator before a notary public and witnesses.
- Has strict formalities (pages must be signed, attestation clause, etc.).
Holographic will
- Entirely handwritten, dated, and signed by the testator.
- No witnesses or notary required, but must be proven in court as genuine.

Failure to comply with formalities can render the will void, which then triggers intestate succession, where the partner receives nothing if there are compulsory heirs.

3. Limits imposed by legitime and inofficious dispositions

Even with a will:

You cannot deprive compulsory heirs of their legitime, except for limited causes of disinheritance strictly defined by law (e.g., attempt on your life, serious maltreatment).
If you leave too much to your partner, beyond the free portion, the excess can be reduced by compulsory heirs as inofficious.

Practical approach:

Calculate roughly:
- Who your compulsory heirs would be at the time of your death (children? parents? spouse?).
- What their minimum share would be.
Ensure that what you leave to your partner fits reasonably in the free portion.
If your family is supportive, you can still “stretch” a bit, but be aware of litigation risk.

4. Disinheritance and family conflicts

You cannot simply say “I disinherit my parents because I love my partner more” unless a cause listed in the Civil Code is truly present and provable.

If disinheritance is invalid, the disinherited heir can claim their legitime, reducing what your partner receives.

VII. Inter Vivos Transfers: Donations, Sales, and Trusts

1. Donations between partners

You may give property to your partner while alive:

Movables of small value: Oral or simple written donations can be valid.
Movables of significant value: Should be in writing; acceptance must be clear.
Real property:
- Must be in a public instrument.
- Acceptance by the donee should be in the same or a separate public instrument.
- Must be registered with the Registry of Deeds to bind third parties.

Important legal constraints:

There is a Family Code provision voiding donations between spouses and between persons in certain illicit relationships (e.g., adultery, concubinage).
Application to same-sex couples depends on the circumstances:
- If both are unmarried, the relationship is not “adultery” under the strict definition, but moral arguments could be raised.
- If one partner is legally married to someone else, donations may be attacked as void or as inofficious/defrauding heirs.

Also, donations may have tax consequences (donor’s tax) and may be reduced later for being inofficious if they impair legitime.

2. Sales and “disguised” donations

Instead of donations, some people transfer property by “sale”:

Genuine sale: Partner pays fair market value; seller gets money; BIR treats this as a taxable sale (capital gains tax / documentary stamp tax).
Simulated sale (where no real payment is made, but the deed says there was):
- If absolutely simulated, the contract is void.
- If relatively simulated (intended to hide a donation), the court may look through the form and treat it as a donation—raising issues on validity and taxation.

Using fake sale documents may backfire; it is safer to structure around real transactions with actual payments and full compliance.

3. Trust structures

Trusts can separate legal title and beneficial ownership:

You may:
- Put property in your name “as trustee for [partner]” (your partner as beneficiary).
- Transfer property to a trusted third party “in trust” for your partner.
For real property, the trust should be in a public instrument and ideally annotated on the title.

Advantages:

Allows you to define who ultimately benefits from property and under what conditions (e.g., only upon your death, or upon a condition).
Can be used to protect assets from mismanagement by the beneficiary.

Risks and limitations:

Trusts that effectively disinherit compulsory heirs may still be attacked as inofficious or as attempts to defraud legitime or creditors.
Poorly documented oral “trusts” are very hard to prove.

VIII. Titling and Registration: In Whose Name Is the Property?

1. Real property (land, condo units)

Common arrangements:

Both names on the title (“co-owners”).
- Clear evidence of co-ownership.
- Share presumption: equal, unless otherwise agreed/documented.
- On death of one partner, their undivided share goes to their heirs or will beneficiary; it does not automatically go to the surviving partner.
Only one partner on the title.
- Legally, that person is the owner as far as third parties are concerned.
- The other partner must rely on:
  - Co-ownership agreement,
  - evidence of contribution (to claim beneficial interest),
  - or testamentary gifts.
Building on land owned by one partner:
- Civil Code protects a builder in good faith: if you build on another’s land with your own funds and without opposition, you may be entitled to reimbursement or even to the land under certain conditions.
- In practice, this becomes a complicated litigation scenario; far better to document a long-term lease, co-ownership, or right of usufruct.

2. Vehicles and high-value movables

LTO records will show the registered owner.
To reflect co-ownership:
- Use both names in the deed of sale.
- Have a co-ownership agreement and keep proof of contributions.

3. Bank accounts

Two common types:

“AND” accounts:
- Both signatures required to withdraw.
- Secure but inconvenient.
- On death of one co-holder, bank may freeze the account pending estate proceedings.
“OR” accounts with survivorship clauses:
- Either partner can withdraw.
- Survivorship stipulation may allow the survivor to continue using the account, but BIR may still treat the decedent’s share as part of the estate for estate tax purposes.
- The other partner’s contributions should be clearly documented to dispute presumptions.

Survivorship clauses are useful practically (immediate access to cash for the surviving partner) but do not always avoid tax or inheritance disputes.

IX. Corporate and Business Structuring

Using companies to hold assets can add protection and flexibility:

1. Corporation or One Person Corporation (OPC)

Real property or investments can be owned by:
- A regular corporation where both partners are shareholders.
- An OPC where one partner owns 100%, and the other is a director/officer or has contractual rights.

Benefits:

Limited liability: Protects personal assets from business debts if properly managed.
Share transfers can be planned by:
- Will,
- buy-sell agreements,
- shareholder agreements granting the partner the right to acquire shares under certain events (death, disability).

Limitations:

Shares pass under succession law; compulsory heirs may still get a portion.
Shareholder agreements with buy-out rights can help the surviving partner retain control, but they must be valid and enforceable; they cannot erase legitime.

2. Partnerships & co-ventures

If the couple is engaged in business together:

A partnership can embody their joint enterprise, with:
- Clear capital contributions.
- Sharing of profits.
- Mechanisms for buy-out upon death, withdrawal, or incapacity.
Co-ventures and joint ventures can be crafted with similar provisions.

Care must be taken to ensure:

Contracts are genuine and not just sham devices to hide assets from legitimate heirs or creditors.
Tax obligations are properly handled.

X. Insurance and Beneficiary Designations

Insurance and similar products are powerful because they often avoid probate and pass by contract, not by will.

1. Life insurance

You can generally designate anyone as beneficiary, subject to specific statutory restrictions.

Key points:

An unmarried person can typically name a same-sex partner as beneficiary.
A married person may face restrictions if naming someone in an illicit relationship as beneficiary (courts have voided such designations in adulterous or concubinage-type situations).
The designation can be:
- Revocable (default) – you can change the beneficiary anytime.
- Irrevocable – you give up the right to change the beneficiary without their consent; this creates vested rights.

Advantages:

Proceeds are usually not part of the estate for purposes of distributing legitime (subject to certain exceptions).
They provide liquidity to the surviving partner for living expenses, debts, or buy-out of shares/real property.

2. Other benefit schemes (SSS, GSIS, Pag-IBIG, private plans)

Statutory schemes often list primary beneficiaries as legal spouse, children, parents.
A same-sex partner is often only allowed as:
- Secondary beneficiary,
- or not allowed at all, depending on the specific rules.
Private plans (company group insurance, private pensions, investment-linked insurance) may allow broader designations.

Always check plan rules:

Who can be a beneficiary?
Can a partner be named directly, or must they be an “estate” or “heir”?
What happens if the beneficiary predeceases the insured?

XI. Health-Care, Decision-Making, and Incapacity

Asset protection is not only about ownership; it’s also about control when one partner is incapacitated.

1. Special powers of attorney (SPA)

If one partner falls ill or loses capacity:

Banks, hospitals, government offices will normally require:
- A SPA,
- or proof of legal authority (e.g., guardianship, being a spouse).

For same-sex partners:

You can grant each other a Special Power of Attorney authorizing:
- Bank transactions,
- Signing of documents,
- Real estate dealings,
- Handling of business matters.

SPAs must be notarized and should be clear about the powers granted.

2. Medical directives / health-care authorization

While Philippine law is not as formalized as some systems:

You can prepare a document authorizing your partner to:
- Access medical records,
- Make decisions if you’re unconscious (subject to hospital policies).
Some hospitals or doctors may still prioritize “next of kin,” but a clear written authorization helps.

XII. Dealing With Creditors and Legal Risks

Asset protection is not about hiding assets from legitimate creditors—that can backfire badly (fraudulent conveyance).

1. Transfers to partner shortly before or after incurring debts

Transfers made in fraud of creditors can be rescinded (accion pauliana).
Courts look at:
- Timing,
- Insolvency,
- Whether adequate consideration was paid,
- Intent.

2. Safer practices

Use limited liability entities (corporations, OPCs) from the start for risky businesses.
Avoid commingling business risks with family/partner assets.
Document legitimate exchanges (sales at fair value, loans with real repayments).

XIII. Children, Parenting, and Property

Where same-sex couples are raising children (through previous relationships, assisted reproduction abroad, or informal arrangements), property and custody issues become more complex.

Key points:

Legal parentage (mother/father on the birth certificate) is crucial.
Only a legal parent (or certain relatives) has custody and parental authority under current law.
Property left to children is governed by legitime rules; a same-sex partner who is not a legal parent has no inherent parental rights.

From an asset protection standpoint:

You can leave property to children and separately to your partner through a will or donations, within legitime limits.
For minors, consider:
- Naming your partner as guardian of property in your will (courts still decide, but your wishes can carry weight).
- Setting up trusts for children with clear instructions.

XIV. Practical Planning Roadmap

For a same-sex couple in the Philippines wanting to protect each other and their assets, a practical set of steps might look like this:

Inventory everything.
- List all assets (real property, vehicles, businesses, bank accounts, investments, insurance).
- Identify whose name each is under and who really contributed.
Decide which assets should be shared, and which should remain separate.
Prepare and notarize:
- A co-ownership/cohabitation agreement.
- SPAs for financial and legal matters.
- A medical authorization / directive if desired.
Fix titles and registrations:
- Correct titles (e.g., add the other partner as co-owner when appropriate).
- Annotate co-ownership/leases/usufructs on property titles.
- Clarify bank account structures and document contributions.
Draft wills for both partners.
- Clearly provide for each other using the free portion.
- Coordinate wills so they make sense together (e.g., consistent treatment of shared property).
- Consider usufruct or habitation for the surviving partner on the home.
Optimize insurance and beneficiary designations.
- Use life insurance and relevant benefit plans to provide cash directly to the partner.
- Set appropriate beneficiary structures (primary/contingent).
Review business and corporate structures.
- Use corporations or partnerships where useful.
- Adopt shareholder or partnership agreements with buy-out or continuation provisions.
Update regularly.
- Revisit the plan upon major life events (buying property, business changes, death of relatives, changes in laws).

XV. Limits of the Current Legal System and Future Changes

The current framework is a patchwork: it uses general private law tools (contracts, co-ownership, succession, corporations) to achieve protections that other couples get automatically through marriage or civil union laws.

Because:

Laws and tax rates change,
New Supreme Court decisions can reshape doctrines,
Local ordinances continue to evolve,

it is wise to:

Treat any plan as living, not static.
Periodically consult a Philippine lawyer with:
- Expertise in family law,
- Property and corporate law,
- Tax implications.

Final Thought

In the Philippines, same-sex couples cannot yet rely on “status” (marriage) for protection. Instead, they must rely on documents. The key difference between a partner who ends up secure, and one who ends up with nothing, often comes down to:

What was written, notarized, and registered, and
Whether those arrangements respected the mandatory rules on heirs, taxes, and creditors.

Careful, early planning can’t fix the law’s inequality— but it can significantly soften its harshest consequences.