PROPERTY REGIME OF UNIONS WITHOUT MARRIAGE (Part I)

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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.

 

You may also read: CAN SPOUSES DONATE PROPERTIES TO EACH OTHER?

• The wages and salaries of common-law partners, who are capacitated to marry each other, shall be owned by them in equal shares and the property acquired by both of them through their work or industry shall be governed by the rules on co-ownership.

• Donated, or inherited properties are not considered co-owned.

• Fruits from the work or industry of either or both of the couple will be considered co-owned.

How should the properties of common-law partners or live-in partners, who are capacitated to marry, be treated?

Under the Family Code:

Art. 147. When a man and a woman who are capacitated to marry each other, live exclusively with each other as husband and wife without the benefit of marriage or under a void marriage, their wages and salaries shall be owned by them in equal shares and the property acquired by both of them through their work or industry shall be governed by the rules on co-ownership. xxx

For Article 147 of the Family Code to apply, the following requisites must be present:

1. both must be capacitated to marry each other
2. there is no marriage or the marriage is void

These both requisites must concur. Thus, if a married man cohabits with an unmarried girl, Article 147 of the Family code does not apply.

Thus, under Article 147 of the Family Code, there are two instances when the governing system is that of CO-OWNERSHIP, namely:

1. when a man and a woman live together as husband and wife, but they are not married (hence, a common-law union or a “live-in’’ relationship); and
2. when there is no benefit of marriage although the man and the woman are capacitated to marry each other and the marriage is void (void ab initio).

Under the rules of co-ownership, the share of the co-owners, in the benefits as well as in the charges, shall be proportional to their respective interests.  And the properties of common-law partners falling under Article 147 of the Family Code, which is under co-ownership are as follows: 

1. the property acquired by either or both of them thru their work or industry; and
2. their wages and salaries.

Henceforth, donated, or inherited properties are not considered co-owned. But in the case of purchased properties, they are considered co-owned if it was obtained through their wages and salaries or it was bought in exchange or substitution of the property acquired by either or both of the couple thru their work or industry. Thus, a house and lot purchased with salaries of the couple should be regarded as co-owned, but a house and lot bought with inherited cash of any of the parties are not considered co-owned. The house and lot belong exclusively to the person who had inherited the money.

As for the fruits from the work or industry of either or both of the parties, these will be considered owned in common by them. For example, interest on bank deposits exclusively owned by either couple should likewise be regarded as exclusive or separate property, not co-owned. However, interest on joint bank deposits of the couple is considered as property owned in common.

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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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