In the Philippines, the property relationship between spouses is governed by the Family Code of 1987. One of the most common points of confusion for couples is the status of "pre-marriage assets"—those properties, savings, or investments acquired by one party while they were still single.
The determination of whether these assets remain private or become shared depends entirely on the property regime that governs the marriage.
1. The Default Regime: Absolute Community of Property (ACP)
For marriages celebrated on or after August 3, 1988, the default regime (in the absence of a prenuptial agreement) is the Absolute Community of Property.
Under ACP, the husband and the wife become joint owners of all property owned by them at the time of the celebration of the marriage, as well as those acquired thereafter.
- The Rule of Integration: Whatever you owned as a bachelor or bachelorette—whether it be a condominium, a car, or a savings account—automatically becomes common property the moment you say "I do."
- The "One Flesh" Doctrine: The law treats the couple as a single economic unit. Assets brought into the marriage are pooled into a single community fund intended to support the family.
Notable Exceptions under ACP
Even under this "share-everything" rule, certain pre-marriage assets remain exclusive property:
- Property acquired by gratuitous title: If you inherited a piece of land or received a donation before the marriage, and the donor/testator specifically stated it should remain yours alone, it stays exclusive.
- Property for personal and exclusive use: Items like clothing or personal effects generally remain private (though expensive jewelry may be debated if it constitutes an investment).
- Property from a previous marriage: If a spouse has legitimate descendants from a prior marriage, the property acquired during that previous union remains the exclusive property of that spouse to protect the children's inheritance rights.
2. The Alternative: Conjugal Partnership of Gains (CPG)
For marriages celebrated before August 3, 1988, or if specifically chosen in a prenuptial agreement today, the regime is the Conjugal Partnership of Gains.
- Retention of Ownership: Unlike ACP, under CPG, each spouse retains ownership of the property they brought into the marriage. If you owned a house before getting married, that house remains yours alone.
- The "Fruits" are Shared: While you keep the title to the asset, the "fruits" or income derived from that asset during the marriage (such as rent from that house or interest from a pre-marital bank account) belong to the conjugal partnership.
3. Complete Separation of Property
Couples may opt for a Complete Separation of Property through a Marriage Settlement (Prenup) executed before the wedding.
- Total Autonomy: In this regime, each spouse owns, disposes of, and enjoys all earnings and assets acquired before and during the marriage.
- No Pooling: There is no common fund; the property you brought into the marriage remains yours, and even the income it generates stays yours.
4. Comparison Table: Assets Acquired Before Marriage
| Asset Type | Absolute Community (ACP) | Conjugal Partnership (CPG) |
|---|---|---|
| Real Estate (Owned before) | Becomes Shared | Remains Exclusive |
| Savings/Cash (Before) | Becomes Shared | Remains Exclusive |
| Inheritance (Before) | Becomes Shared (usually) | Remains Exclusive |
| Rent from Pre-marital Land | Shared | Shared |
| Jewelry/Clothing | Usually Exclusive | Exclusive |
5. The Impact of Legal Separation and Annulment
The status of pre-marital assets becomes critical during the dissolution of the union.
- In ACP: Upon dissolution (like an annulment or legal separation), the community property is divided equally (50/50), meaning a spouse may lose half of what they originally brought into the marriage.
- In CPG: Upon dissolution, the spouse takes back their exclusive pre-marital property, and only the "net gains" (the profits made during the marriage) are divided.
6. Summary of Key Principles
- Date of Marriage Matters: The 1988 threshold determines whether your "default" is sharing everything (ACP) or keeping your own (CPG).
- The Prenup is King: The law only steps in when the couple has not signed a formal agreement. A valid Marriage Settlement can override the default rules of ACP.
- Proof of Acquisition: In disputes, the law generally presumes property belongs to the community unless there is clear evidence (titles, receipts, deeds) that it was acquired prior to the marriage and falls under an exception.
Note on Formalities: To be binding against third parties (like creditors), any marriage settlement or special arrangement regarding property must be in writing, signed before the marriage, and registered in the local civil registry and the proper Registry of Deeds.