Property Relations of Unmarried Cohabiting Couples in the Philippines

(Co-Ownership and Claims)

Unmarried couples who live together in the Philippines do not form a “marital property regime,” but they are not left without rules. Their property relations are governed primarily by the Civil Code’s provisions on co-ownership and by two cornerstone provisions of the Family Code—Article 147 and Article 148—which allocate benefits and burdens depending on whether the partners were free to marry each other or legally disqualified to marry each other during the cohabitation. Understanding which rule applies is the starting point for answering almost every question about ownership, reimbursement, partition, and remedies.

I. Two Statutory Frameworks

A. Article 147: Couples free to marry each other

This article applies when the partners were not otherwise disqualified to marry (e.g., both single, widowed, or annulled) but did not contract a valid marriage, or their marriage is void for reasons other than those that place the parties in a prohibited or adulterous/bigamous situation (e.g., lack of a marriage license, defective formal requisites).

Core effects under Article 147:

Co-ownership of acquisitions. Wages and properties acquired by either or both through their work or industry during cohabitation are presumed co-owned in equal shares, unless proven otherwise.
Household services count. The care and maintenance of the family and household contributed by one partner is considered a contribution to the acquisitions; one need not show cash payments to share equally.
Exclusives stay exclusive. Properties acquired before cohabitation, or acquired during cohabitation by gratuitous title (e.g., donation or inheritance) remain exclusive to the acquiring partner, unless the grant was expressly in favor of both.
Presumption of equality. If exact contributions cannot be proven, shares are presumed equal.

Good faith / bad faith nuances. Article 147 is designed for partners who could have been validly married. When one partner is in bad faith (e.g., concealed an existing impediment), courts may protect the innocent partner’s share and forfeit unlawful benefits of the party in bad faith in favor of the common children; if none, the law may favor the innocent partner, and in default, the State. The precise disposition depends on the factual matrix and judicial application.

B. Article 148: Couples disqualified to marry each other

This provision governs unions where one or both partners were legally disqualified to marry each other during the cohabitation—bigamous, adulterous, incestuous, and relationships void for public policy or public order, as well as pairings where the law otherwise bars a valid marriage (including, under present law, same-sex partners, since marriage between them is not recognized).

Core effects under Article 148:

Strict proof of joint contribution. Only properties acquired by both through their actual joint contributions of money, property, or industry are co-owned.
Proportionate shares. Each partner owns in proportion to his/her proven contribution. Household or domestic services do not count as contribution under Article 148.
No automatic presumption of equality. If contributions cannot be proven, some decisions default to equal shares only to the extent of what is proven, but the safer practical rule is: no proof, no share beyond what the court may equitably infer.
Special rules when one is already married. If one partner has a subsisting valid marriage, the share of the married partner in any Article 148 co-ownership is typically absorbed by the property regime of that valid marriage (absolute community or conjugal partnership), to protect the legitimate family.
Forfeitures for bad faith. Where both are in bad faith, courts may forfeit unlawful gains in favor of the common children; in their default, in favor of the respective innocent spouses/children, and ultimately, the State.

II. Mapping Common Situations

Scenario	Governing Rule	How acquisitions are shared
Both single; live together without marrying	Art. 147	Presumed equal shares in acquisitions from work/industry; domestic services count.
Marriage void (e.g., lack of license), but partners could have married each other	Art. 147	Same as above.
One partner secretly still married to someone else (bigamy), or partners are in an adulterous relationship	Art. 148	Proportionate to proved contributions only; domestic services do not count. Share of the married partner may accrue to his/her valid marital estate.
Same-sex cohabitation (no recognized marriage)	Art. 148	Proportionate to proved contributions only.
Incestuous or relationships void for public policy	Art. 148	Proportionate to proved contributions only; potential forfeitures.

III. What Counts as “Acquired by Work or Industry”?

Inclusions (typical): salaries, professional income, business profits, savings accumulated during cohabitation, assets purchased during cohabitation using those earnings, and natural/accessory fruits (rents, interests, dividends) traceable to co-owned funds.
Exclusions: property already owned before cohabitation; inheritances and pure donations to one partner; items acquired exclusively with separate funds (unless there is clear intention to co-own).
Tracing matters: If an asset was bought with mixed funds (part separate, part common), the asset may be co-owned pro tanto; meticulous records help.

IV. Title in One Name vs. Beneficial Co-Ownership

Land titles, vehicle OR/CRs, bank accounts, or shares registered in only one partner’s name do not conclusively determine beneficial ownership. Registration ≠ ownership as between the partners. Courts examine source of funds, timing of acquisition, intent, and contemporaneous conduct. A party may sue for declaration of co-ownership, reconveyance, imposition of a constructive trust, or accounting even if his/her name is not on the paper title.

V. Donations Between Partners

As a rule, donations between persons living together as husband and wife without a valid marriage are void, save for moderate gifts on occasions of family rejoicing or customary generosity. Large transfers disguised as “gifts” are vulnerable and may be recoverable by the giver (or the giver’s legitimate family or heirs) or subject to forfeiture rules.

VI. Foreign Nationals and Land

The Constitution prohibits foreign individuals from owning land in the Philippines. If a foreign partner funds the acquisition of land placed in the Filipino partner’s name, courts will not allow a resulting trust to circumvent the ban. The foreign partner may—depending on facts—seek recovery of money value or a lien for provable funds, but not ownership of the land itself. (Condominium units may be different, subject to the 40% foreign ownership limit of the project and other legal requirements.)

VII. Separation, Death, and Partition

A. While the co-ownership subsists

Each partner is a co-owner of acquisitions (Art. 147 equal shares; Art. 148 proportionate shares).
Each may use and enjoy the property without prejudicing the co-ownership or the other’s use, consistent with the property’s purpose.
Neither may appropriate the whole or make substantial alterations without consent.

B. On breakup or death

Either partner (or heirs) may file an action for partition and accounting. The court will:
1. Identify the mass of co-owned properties;
2. Settle charges and credits (necessary expenses, repairs, taxes, mortgage payments made by one, etc.);
3. Determine shares (equal or proportionate, per the governing article);
4. Partition in kind or sell and divide proceeds; and
5. Adjudge reimbursements and fruits.

Prescription: Actions to dissolve a co-ownership generally do not prescribe while co-ownership endures; however, claims based on implied/constructive trusts or to annul transfers may be subject to time bars. To avoid pitfalls, assert claims promptly.

Creditors’ rights: A partner’s undivided share can be reached by that partner’s creditors, who may also seek partition to satisfy judgments.

VIII. Reimbursements, Liens, and Accounting

Courts routinely adjust the equities through reimbursements and liens:

Improvements & repairs. The partner who made necessary expenses (e.g., taxes, essential repairs) may demand reimbursement with interest; useful improvements may justify reimbursement or retention rights until paid.
Mortgage & debt service. Payments made by one partner on loans secured by co-owned property are credited to that partner on liquidation.
Exclusive use. If one partner exclusively uses a co-owned asset (e.g., lives alone in the house, or operates the co-owned car as a business), the other may claim reasonable rent or fruits upon demand or as ordered in accounting.
Bad-faith dispositions. If a partner sells or encumbers co-owned property without authority, the disposition binds only his/her undivided share. The buyer may be deemed in bad faith if put on notice of the co-ownership, exposing the transfer to rescission or reconveyance.

IX. Burden of Proof and Evidence

Article 147: The law presumes equal shares in acquisitions from work/industry; the partner claiming exclusion or greater share bears the burden to prove it. Household efforts count as contribution.
Article 148: The claimant must prove actual contributions (cash/property/industry). Receipts, bank statements, payroll records, remittance slips, contracts, tax filings, and credible testimony are key. Domestic services do not count.
Tracing & timing: Courts are strict about dates (before/during/after cohabitation) and source of funds; contemporaneous records are far more persuasive than ex-post assertions.

X. Children and Support

Property regimes under Articles 147/148 are independent of filial rights. Children, whether legitimate, illegitimate, or common to the partners, have their own rights to support and succession. A partner’s share in the co-ownership forms part of his/her estate and is transmitted to heirs according to succession law. Forfeiture provisions in cases of bad faith protect common children first.

XI. Tax and Registration Touchpoints (Practical)

Capital gains/Documentary stamp taxes apply to sales or transfers when property is partitioned by sale; pure partition among co-owners typically does not trigger capital gains tax, but confirmatory deeds may carry documentary stamp taxes and registration fees.
Estate taxes may apply upon death to the decedent’s share in the co-ownership.
Annotations. After a judicial partition or a compromise, register new titles or annotate co-ownership or liens to protect rights against third persons.

(Tax consequences vary by fact pattern; obtain tailored tax advice before closing transfers.)

XII. Cohabitation / Property Agreements

Unmarried partners may enter written agreements to regulate ownership shares, expense-sharing, management, dispute resolution, and exit terms, provided these are not contrary to law, morals, or public policy (e.g., they cannot legalize a bigamous relationship, defeat the constitutional land ban for foreigners, or waive future support of children). While such agreements cannot convert the union into a marriage, they can reduce litigation by recording intent, contributions, and allocation rules.

Good practice clauses:

Inventory of properties owned before cohabitation;
Method of tracking contributions (joint account, shared ledger);
Default allocation for acquisitions (equal vs. proportionate);
Rules for gifts and loans between partners;
Exit protocol (appraisal, buy-out rights, sale triggers);
Dispute resolution (mediation, venue, governing law).

XIII. Typical Claims and Remedies

Declaration of co-ownership (and determination of shares).
Partition and accounting (judicial or by agreement).
Reconveyance / cancellation of title (where one partner improperly titled the whole to himself/herself).
Constructive trust (to prevent unjust enrichment where one holds for the benefit of both).
Reimbursement and liens (for taxes, amortizations, improvements).
Receivership or injunction (to preserve property pending suit).
Damages (for bad-faith alienations or refusal to account).
Forfeiture applications (in cases of bad faith under the Code).

Venue & procedure: Actions affecting title to land are filed where the land is located; personal actions (e.g., accounting, reimbursement) generally where plaintiff resides or defendant resides, per the Rules of Court. Summary vs. ordinary procedure depends on property values and relief.

XIV. Practical Checklists

Before buying major assets while cohabiting:

Decide if the acquisition is co-owned and in what shares;
Put the co-ownership intent in writing (even a short memorandum signed by both);
Keep proof of contributions (bank transfers, receipts, payroll, loan documents);
For land, respect the foreign ownership ban and other restrictions;
If only one name will appear on title, annotate or keep a private deed recognizing the other’s beneficial share.

When separating (or upon death):

Compile an inventory of properties and debts;
Gather proof of acquisition dates, funding sources, and improvements;
Propose a settlement (equal or proportionate, depending on Article 147 or 148);
If talks fail, prepare for partition/accounting litigation with full documentation and credible witnesses.

XV. Key Takeaways

Identify the governing article: 147 (free to marry) → equal shares with household services counting; 148 (disqualified to marry) → shares strictly by proved contributions; domestic services don’t count.
Title is not decisive between partners; source and timing of funds rule.
Keep records; proof wins Article 148 cases.
Donations between cohabitants are generally void beyond moderate customary gifts.
Foreigners cannot own land—no workaround via trusts.
On breakup or death, think partition + accounting + reimbursements.
A clear written agreement can prevent disputes while staying within legal limits.

Final word

Unmarried cohabitation in the Philippines creates real, legally cognizable property rights, but the path to enforcement is highly fact-driven. The best protection is proactive documentation; the second-best is a disciplined accounting of contributions and acquisitions. When disputes arise, the choice between Article 147 and Article 148 usually decides the case—and your evidence does the rest.