In the Philippine legal landscape, the sale of property by one spouse often raises concerns regarding the necessity of the other spouse's consent. While the general rule under the Family Code of the Philippines requires joint administration of community or conjugal property, the rules shift significantly when the asset in question is classified as exclusive property.
1. Defining Exclusive Property
Before determining the validity of a sale, one must identify the property regime governing the marriage. Under the Family Code (effective August 3, 1988), the default regime is Absolute Community of Property (ACP) unless a marriage settlement (prenuptial agreement) was signed. For marriages celebrated under the Civil Code (prior to August 3, 1988), the default is Conjugal Partnership of Gains (CPG).
Under Absolute Community (ACP)
Almost all property acquired before or during the marriage becomes common. However, the following remain exclusive:
- Property acquired during the marriage by gratuitous title (inheritance or donation), including the fruits thereof, unless the donor/testator provides otherwise.
- Property for personal and exclusive use (excluding jewelry).
- Property acquired before the marriage by a spouse who has legitimate descendants from a former marriage.
Under Conjugal Partnership (CPG)
The scope of exclusive property is broader:
- That which is brought to the marriage as his or her own (Paraphernal for the wife; Capital for the husband).
- That which each acquires during the marriage by gratuitous title.
- That which is acquired by right of redemption, barter, or substitution with property belonging to only one of the spouses.
- That which is purchased with exclusive money of the wife or husband.
2. The Power of Disposal and Administration
The core legal principle is found in Article 111 of the Family Code:
"A spouse of age may mortgage, encumber, alienate or otherwise dispose of his or her exclusive property, without the consent of the other spouse, and appear alone in court to litigate with regard to the same."
Because the property does not belong to the "community" or "partnership," the owner-spouse retains the jus disponendi (right to dispose). Consequently, a deed of sale executed by the owning spouse regarding their exclusive property is valid and binding even without the signature or knowledge of the other spouse.
3. The "Family Home" Exception
The most critical caveat to the rule of exclusive disposal is the Family Home. Under Article 155 and 157 of the Family Code, the family home is the dwelling house where the husband and wife and their family reside.
Even if the house or the land on which it sits is the exclusive property of one spouse, it cannot be sold, alienated, or encumbered without the written consent of the other spouse, or the beneficiaries (e.g., children) if the other spouse is deceased.
If a spouse sells the exclusive property that serves as the family home without the other’s consent, the sale may be challenged or held unenforceable insofar as it prejudices the family's right to the dwelling.
4. The Presumption of Conjugality
A recurring hurdle in these transactions is Article 116, which states that all property acquired during the marriage is presumed to be conjugal/community property unless it is proven that it belongs exclusively to one of them.
- Registry of Deeds: If a Transfer Certificate of Title (TCT) describes the owner as "Juan Dela Cruz, married to Maria Dela Cruz," the phrase "married to" is often considered a mere description of civil status. It does not automatically make the property conjugal.
- Burden of Proof: If a buyer purchases exclusive property, they must ensure the seller can prove its exclusive nature (e.g., through a Deed of Donation or a Will) to overcome the legal presumption of conjugality.
5. Summary of Validity and Effects
| Scenario | Validity of Sale | Requirement |
|---|---|---|
| Exclusive Property (General) | Valid | Owner-spouse's signature only. |
| Exclusive Property (Family Home) | Voidable/Restricted | Written consent of the non-owning spouse. |
| Conjugal/Community Property | Void | Joint consent of both spouses. |
Legal Recourse
If a spouse sells exclusive property, the other spouse cannot generally annul the sale because they have no "right of ownership" over that specific asset. However, if the sale was a sham or a simulated contract intended to defraud the other spouse of their eventual share in the estate, or if it involves the family home, a petition for nullity or damages may be filed in court.