The dissolution of a marital property regime—whether through annulment, declaration of nullity of marriage, legal separation, or judicial separation of property—necessarily triggers the liquidation, partition, and distribution of the community or conjugal properties. Once the spouses (or former spouses) agree on how the properties will be divided, or a court finally adjudicates the division, the next critical step is the actual transfer of title, particularly of real properties, from the former community or conjugal ownership to the individual ownership of the awarded spouse.

This article exhaustively discusses the legal nature of such transfers, the available modes of partition, tax treatment under current BIR rules (as of December 2025), documentary requirements, common pitfalls, and judicially accepted best practices in the Philippines.

I. Legal Nature of the Transfer After Marital Settlement

The transfer of property pursuant to a marital settlement is NOT an ordinary sale, donation, or dation in payment unless the parties expressly structure it as such.

Under settled Supreme Court jurisprudence (e.g., Spouses Rabuya v. Spouses Rabuya, G.R. No. 212204, 24 April 2018; Heirs of Go v. Servacio, G.R. No. 157537, 23 September 2013, reiterated in numerous 2020–2025 cases), the partition of community or conjugal property is merely a designation of which spouse owns which asset in absolute terms. It is not a new acquisition but a recognition of pre-existing co-ownership that is now being terminated.

Consequently, the general rule is:

Pure partition (no equalization payment) → no capital gains tax, no donor’s tax, no documentary stamp tax on the transfer itself (BIR Ruling No. DA-489-03, reiterated in BIR Ruling No. OT-366-2022 and RMO 26-2024).
Partition with equalization payment (one spouse pays the other to equalize shares) → the payment is treated as a sale only to the extent of the amount paid; the excess over the proportional share is subject to 6% CGT and 1.5% DST.
One spouse waives rights in favor of the other (common when children are with one parent) → treated as a donation inter vivos; subject to donor’s tax (6% flat rate under TRAIN Law as amended) unless covered by exemption (e.g., donation to former spouse in annulment/nullity cases is expressly exempt under Revenue Regulations No. 13-2023).

II. Governing Law on Liquidation and Partition

Articles 102 and 129, Family Code – liquidation of absolute community
Articles 116 and 136, Family Code – liquidation of conjugal partnership of gains
Article 147, Family Code – co-ownership regime (for void marriages lived as husband and wife)
Article 148, Family Code – co-ownership in adulterous/bigamous relationships (only actual contributions)
Rule on Liquidation of Conjugal Partnership Assets in Legal Separation (A.M. No. 02-11-11-SC)
Rule on Declaration of Absolute Nullity of Void Marriages and Annulment (A.M. No. 02-11-10-SC)

All these rules uniformly require that liquidation, partition, and distribution must be done before any transfer of title can be validly registered.

III. Modes of Effecting the Transfer of Title

A. Extrajudicial Partition (Most Common and Preferred)

When the parties are in full agreement:

Execute a notarized Deed of Partition with Waiver of Rights or Deed of Adjudication with Waiver of Rights.

Recommended title: “Deed of Partition and Adjudication of Community/Conjugal Properties with Simultaneous Waiver of Rights and Quitclaim”
If the property is titled in the name of “X married to Y”, the deed must state that the entire property is awarded to one spouse and the other waives all rights, title, and interest.
Attach the following to the deed:
- Certified true copy of the Marriage Certificate with annotation of annulment/nullity/legal separation (from PSA)
- Certified true copy of the Court Order/Decision approving the compromise agreement or judicially adjudicating the partition
- If no court case, a notarized Separation of Property Agreement approved by the court (judicial approval still required under Art. 134, Family Code, unless regime was already CPG before 1988 and voluntarily separated)
Secure Certificate Authorizing Registration (CAR) from BIR.

For pure partition: BIR now issues CAR without payment of CGT/DST upon submission of an Affidavit of No Equalization Payment and sworn declaration that it is mere partition (per RMO 26-2024).
Pay local transfer tax (0.75% in most LGUs) and obtain Certificate of No Improvement or updated Tax Declaration.
Register the deed with the Register of Deeds → cancellation of old TCT/OCT and issuance of new title in the name of the awarded spouse alone, with annotation “formerly married to ___” or clean title if annulled/declared null.

B. Judicial Partition

When parties cannot agree:

File a separate action for judicial partition (ordinary civil action) after the finality of the annulment/legal separation decree. The court will appoint commissioners, conduct inventory, and order public auction if indivisible. Only after entry of judgment can title be transferred.

C. Deed of Absolute Sale (When Equalization is Significant)

Spouses sometimes prefer to structure the transfer as a sale for nominal consideration (P1,000,000) to avoid donor’s tax issues. This triggers full 6% CGT and 1.5% DST on the zonal value or selling price, whichever is higher. Acceptable but more expensive.

D. Deed of Donation

Used when one spouse completely relinquishes rights without payment. Donor’s tax exemption applies only if the donation is made pursuant to annulment/nullity (RR 13-2023). Otherwise, 6% donor’s tax applies.

IV. BIR Requirements as of December 2025 (Current Practice)

For pure partition (no cash payment):
- Notarized Deed of Partition/Adjudication
- PSA Marriage Certificate with annotation
- Court Decision/Order (if judicial)
- Affidavit of No Equalization Payment
- Sworn Declaration of the Nature of Transfer → BIR issues CAR without tax payment
For partition with equalization > P250,000 (stranger rule threshold waived for former spouses in most RDOs):
- Treat as part sale; pay 6% CGT and 1.5% DST only on the amount paid
Documents uniformly required for CAR:
- TIN of both parties
- Valid IDs
- Proof of payment of updated realty taxes
- Original Owner’s Duplicate Certificate of Title
- Latest Tax Declaration

Processing time: 3–10 days in most RDOs if complete.

V. Register of Deeds Requirements (2025 LRA Guidelines)

Under LRA Circular No. 2023-08 and 2024-15:

Original + 2 photocopies of the Deed
CAR from BIR
Transfer tax receipt or clearance from LGU
Payment of registration fees (approx. 0.25% of FMV)
DAR Clearance if agricultural land >5 hectares
DENR clearance if foreshore or patrimonial property
Condominium Certificate of Title requires Master Deed annotation and CPT cancellation

The RD will cancel the old title annotated “married to” and issue a new title in the sole name of the awarded spouse.

VI. Special Situations

Property titled solely in one spouse’s name but proven conjugal/community
→ Still requires deed of conveyance from the titled spouse to himself/herself as co-owner and waiver from the other spouse. RD accepts this format.
Foreign former spouse
→ Upon nullity, the Filipino spouse may adjudicate the entire land to himself/herself. Foreigner retains only improvements or may be reimbursed (Art. 50, Family Code; Matthews v. Taylor, G.R. No. 164584, 22 June 2009).
Properties under Torrens title acquired during void ab initio marriage
→ Title remains valid but ownership reverts to actual contributions (Art. 147). Partition follows co-ownership rules.
Mortgage subsisting on the property
→ Bank consent or substitution of mortgagor required; otherwise, mortgage remains.
Pending cases or lis pendens
→ Must be cancelled first before new title can issue.

VII. Prescription and Laches

Failure to liquidate within 10 years from finality of decree does not prescribe the right to liquidate (Spouses De Leon v. Spouses De Leon, G.R. No. 213299, 9 November 2020). However, third-party rights (innocent purchasers for value) may intervene.

VIII. Recommended Best Practice (2025)

Execute a comprehensive Deed of Extrajudicial Partition with Waiver of Rights, attach all court documents, secure BIR CAR under the “pure partition” rule (zero tax), pay only local transfer tax and registration fees. This is now routinely approved nationwide and is the fastest, cheapest, and least contentious method.

The entire process—from deed execution to new title issuance—can now be completed in 15–45 days if all documents are complete.

By following the above rules and submitting the correct sworn declarations, the transfer of property title after marital settlement is essentially tax-free when it is a genuine partition without equalization payment, reflecting the settled policy that former spouses should not be penalized twice—once by the breakdown of the marriage, and again by the taxman.