In the Philippines, the legal rights of a spouse over property acquired before marriage are primarily governed by the Family Code of the Philippines (Executive Order No. 209). The extent of these rights depends almost entirely on two factors: the date of the marriage and whether a Pre-nuptial Agreement was signed.
1. The Property Regimes
Under Philippine law, if no pre-nuptial agreement is executed, a "default" property regime automatically governs the couple's assets. The law changed significantly on August 3, 1988, creating two distinct sets of rules based on the wedding date.
Absolute Community of Property (ACP)
- Applicability: Marriages celebrated on or after August 3, 1988.
- The Rule: Unless otherwise provided in a pre-nuptial agreement, the husband and wife become joint owners of all property owned by them at the time of the celebration of the marriage, as well as property acquired thereafter.
- Pre-marriage Property: Assets you owned while single (e.g., a condo, a car, or land) automatically become common property the moment you say "I do." Both spouses own an undivided interest in these assets.
Conjugal Partnership of Gains (CPG)
- Applicability: Marriages celebrated before August 3, 1988, or if specifically chosen in a pre-nuptial agreement.
- The Rule: Each spouse retains ownership, possession, administration, and enjoyment of their exclusive property—assets acquired before the marriage.
- The "Gains": Only the proceeds, products, fruits, and income from that separate property (e.g., rent from a pre-marriage apartment) become part of the conjugal partnership for the benefit of the family.
2. Exceptions to Absolute Community (ACP)
Even under the ACP regime, where "everything is shared," the law provides specific exclusions under Article 92 of the Family Code. The following remain exclusive property and do not become part of the community:
- Property acquired during the marriage by gratuitous title: If a spouse receives a gift or inheritance during the marriage, it is theirs alone, unless the donor or testator explicitly states it should be shared.
- Property for personal and exclusive use: Items like clothing or personal effects (excluding jewelry) remain exclusive.
- Property acquired before the marriage by a spouse who has legitimate descendants from a former marriage: This is a crucial protection. If a person has children from a previous marriage, the property they owned before the second marriage remains exclusive to protect the inheritance rights of those children.
3. Administration and Enjoyment
The rights of a spouse to manage these properties also vary by regime:
| Feature | Absolute Community (ACP) | Conjugal Partnership (CPG) |
|---|---|---|
| Ownership | Joint ownership of pre-marriage assets. | Exclusive ownership of pre-marriage assets. |
| Administration | Jointly administered; one spouse’s decision generally binds the other, but major dispositions require mutual consent. | The owner-spouse administers their pre-marriage property. |
| Sale/Mortgage | One spouse cannot sell or mortgage the property without the written consent of the other. | The owner-spouse can generally dispose of the property without the other's consent, provided it doesn't prejudice the family. |
4. Formal Requirements for Pre-nuptial Agreements
To deviate from these default rules, a couple must execute a marriage settlement (pre-nuptial agreement). For this to be valid against third parties and binding between the couple:
- It must be in writing.
- It must be signed before the celebration of the marriage.
- It must be registered in the local civil registry where the marriage is recorded and in the proper Registry of Deeds.
5. Dissolution and Liquidation
Upon the death of a spouse, legal separation, or annulment, the properties are liquidated.
- In ACP, the community property is divided equally (50/50) after debts and obligations are paid.
- In CPG, the spouse retrieves their pre-marriage property (the "capital" or "paraphernal" property), and only the "net profits" earned during the marriage are divided equally.
Note on Foreign Spouses: Under the Philippine Constitution, foreign nationals are prohibited from owning land. Therefore, even if married to a Filipino under ACP, a foreign spouse does not acquire ownership rights over Philippine land acquired before or during the marriage, though they may have rights to the monetary value upon liquidation.