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: WHAT ARE THE EXCLUSIVE PROPERTIES OF SPOUSES IN A CONJUGAL PARTNERSHIP?
-
Generally, the sale between husband and wife is inexistent and void from the beginning because such contract is expressly prohibited by law.
-
The husband and the wife may however sell property to each other when a separation of property was agreed upon in the marriage settlements.
-
The husband and the wife may sell property to each other when there has been a judicial separation of property.
Husband and wife cannot donate to one another. The prohibition extends to common-law relationship. The reason is public policy, the possibility that one may exert undue influence over the other. However, may husband and wife sell property to each other during the marriage?
Civil Code provides that:
The husband and the wife cannot sell property to each other, except:
- When a separation of property was agreed upon in the marriage settlements; or
- When there has been a judicial separation of property.
The husband and the wife are prohibited from selling property to each other. A sale between husband and wife in is inexistent and void from the beginning because such contract is expressly prohibited by law.
The reason for the law is not based so much on the union of the personality of the husband and wife nor on the weakness of the sex and on the possibility that the husband will induce his wife to engage in ruinous operations, but primarily, for the protection of third persons who, relying upon supposed property of either spouse, enters into a contract with either of them only to find out that the property relied upon was transferred to the other spouse.
- Persons permitted to question the sale:
- The heirs of the spouses who have been prejudiced;
- Prior creditors; and
- The State when it comes to the payment of the proper taxes due on the transactions.
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.
All rights reserved.
SUBSCRIBE NOW FOR MORE LEGAL UPDATES!
[email-subscribers-form id=”4″]