In the Philippines, the traditional concept of a family has heavily centered on the institution of marriage. However, the rise of common-law relationships or cohabitation without the benefit of marriage has necessitated clear legal frameworks to govern property relations. When unmarried partners pool their resources to buy, build, or renovate a house, disputes over ownership frequently arise upon separation.

The property rights of unmarried couples are not governed by the regimes of Absolute Community of Property or Conjugal Partnership of Gains, which apply strictly to valid marriages. Instead, the Family Code of the Philippines provides two distinct regimes under Article 147 and Article 148. Determining which law applies depends entirely on the legal capacity of the partners to marry each other.

The Two Legal Frameworks for Unmarried Cohabitation

1. Article 147: Partners Capacitated to Marry

Article 147 applies to a man and a woman who live exclusively with each other as husband and wife but are not married, provided that:

They have no legal impediment to marry each other (e.g., both are single, of legal age, and not closely related by blood).
Their marriage is void under certain provisions, such as psychological incapacity (Article 36).

Rules on House Contributions under Article 147:

Presumption of Equal Co-Ownership: Wages and salaries earned by either party during the cohabitation are owned by them in equal shares. More importantly, properties acquired by both through their joint efforts, skills, or industry are presumed to be owned in equal shares.
The Value of Domestic Care: A crucial feature of Article 147 is the recognition of non-monetary contributions. If one partner contributed financially to buy or build the house, while the other partner managed the household and cared for the family, the law deems the caregiving partner to have contributed jointly. Thus, the care of the home and family is legally recognized as a valid material contribution, granting that partner an equal 50% share in the house.
Disposal of Property: Neither partner can sell, mortgage, or encumber the house without the consent of the other during the cohabitation, as it is treated as a co-owned asset.

2. Article 148: Partners with Legal Impediments to Marry

Article 148 applies when the cohabitation involves partners who are barred from marrying each other. This includes:

Adulterous or bigamous relationships (e.g., one or both partners are still legally married to someone else).
Incestuous marriages or those contrary to public policy.

Rules on House Contributions under Article 148:

Strict Actual Contribution Rule: Unlike Article 147, there is no presumption of joint ownership or equal sharing here. Only the property acquired by both through their actual joint contribution of money, property, or industry will be co-owned.
Proportionate Ownership: The ownership share in the house is strictly proportional to the actual financial or material contribution made by each partner. If Partner A paid 70% of the cost of construction and Partner B paid 30%, their ownership reflects those exact percentages.
Exclusion of Domestic Effort: Under Article 148, managing the household, cooking, and taking care of the family do not count as a contribution toward the acquisition of property. If one partner did not provide financial or material resources to build or buy the house, they cannot claim ownership based on domestic efforts.
The Forfeiture Rule: If one of the partners is legally married to someone else, their share in the co-owned house does not automatically go to them; it may be forfeited in favor of the legitimate conjugal partnership or absolute community of the existing valid marriage.

Key Scenarios Involving House Contributions

To better understand how these laws apply in real-world scenarios, consider the following breakdowns:

Scenario A: The Land Belongs to One Partner, but the House Was Built Jointly

If a couple falls under Article 147 and builds a house on land exclusively owned by Partner A before the cohabitation:

The land remains the exclusive property of Partner A.
The house built during the cohabitation is presumed co-owned equally, provided joint effort (financial or domestic) is established.
Upon separation, Partner A may have to reimburse Partner B for their share of the value of the house, or the court may order a partition.

Scenario B: One Partner Paid for Everything, but They Are Capacitated to Marry

Under Article 147, even if Partner A paid for 100% of the house out of their personal salary earned during the cohabitation, the law states that salaries earned during the relationship belong to both equally. Therefore, the house is still co-owned 50/50, unless Partner A can definitively prove that the funds used were acquired before the cohabitation or via exclusive inheritance/donation.

Scenario C: One Partner Paid for Everything in an Adulterous Relationship

Under Article 148, if Partner A (who is married to someone else) buys a house where they live with Partner B (a single individual), and Partner B made no financial contribution, the house belongs exclusively to Partner A. In fact, because Partner A is legally married, that house may legally belong to the conjugal partnership of Partner A and their legal spouse, leaving Partner B with no rights to the property upon separation.

Proving Ownership and Contributions in Court

When an unmarried couple separates and cannot agree on how to divide a house, the dispute must be settled through a judicial action for partition. The burden of proof varies significantly depending on the applicable regime:

Under Article 147: The party denying co-ownership must present clear evidence to rebut the legal presumption of equality. They must prove that the other partner neither provided financial means nor domestic care toward the acquisition of the asset.
Under Article 148: The burden is on the claimant to prove exactly how much they contributed. Courts require concrete evidence, such as:
Bank transfer receipts or checks showing payment to contractors or developers.
Land titles, deeds of sale, or construction contracts bearing both names.
Receipts for construction materials issued in the claimant's name.

Note on Land Registration: Even if a Certificate of Title (TCT) or Tax Declaration states that the property is registered under the name of only one partner (e.g., "Partner A, single"), Philippine courts have consistently ruled that registration under the Torrens system does not create or vest ownership; it merely confirms it. If Partner B can prove co-ownership under Article 147 or actual contribution under Article 148, the court will look past the name on the title to uphold equitable property rights.