The Conjugal Partnership of Gains

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Published — June 1, 2022

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

Read also: Without Ante- Nuptial Agreement, What Property Regime Will Govern the Assets of Future Spouses?

Previously, before the Family Code, or before 03 August 1988, the default property regime of spouses is Conjugal Partnership of Gains. However, at present, spouses may only opt to have the regime of Conjugal Partnership of Gains govern their property relations if the same was stipulated in their antenuptial agreement.

In a Conjugal Partnership of Gains, the spouses place in a common fund place the fruits of their separate property, and the income from their work or industry and the same is to be divided between them equally, generally, upon the dissolution of the marriage or the partnership. The spouses however retain ownership and administration of their separate properties. They also retain possession and enjoyment of the same. But either of them may transfer the administration to each other by means of a public instrument which must be recorded in the registry of property of the place where the property is located.

While the law guarantees that the net gains or benefits of the conjugal partnership shall be divided between the spouses at the liquidation of the conjugal partnership, such guarantee, however, does not mean that they would always get their shares. Such right over the net gains is merely inchoate because it may be found out after the liquidation that there is no conjugal partnership of gains to be divided.

Properties Covered by the Conjugal Partnership

The Conjugal Partnership covers the following properties:

1. The proceeds, products, fruits and income from the separate properties of the spouses.
2. Those acquired by either or both of the spouses:
1. by their efforts, or
2. by chance.

Liability of Spouses

Spouses are liable pro-rata in the satisfaction of the partnership’s indebtedness. Nonetheless, if the conjugal partnership is insufficient to cover the liabilities, the spouses shall be solidarily liable for the unpaid balance with their separate properties.

Duration of Conjugal Partnership

The conjugal partnership of gains is supposed to last until:

1. the dissolution of the marriage, like death or annulment.
2. the dissolution of the partnership, like legal separation or judicial separation of property.

What forms part of the exclusive property of the spouses in a Conjugal Partnership of Gains? This will be discussed in the succeeding article.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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