(Applies to marriages after August 3, 1988 where the parties did not enter into any pre-nuptial agreement).
As general rule, under the 1988 Family Code of the Philippines, all properties brought into and acquired during the marriage shall form part of the community (commonly known as “conjugal”) property of the spouses.
But there are certain exceptions to this general rule.
During her marriage, Mrs. X inherited a parcel of land from her parents. Later, Mr. X filed for the declaration of nullity of his marriage with Mrs. X and seeks to equally divide the property inherited by Mrs. X from her parents, alleging that this is part of their community property. Is Mr. X correct?
Mr. X is wrong.
Properties acquired by either the husband or the wife by gratuitous title during the marriage is considered as paraphernal property, or exclusive property, of the person who received it. It is not considered as part of the community property.
Gratuitous means “without pay”. Properties acquired by gratuitous title may be in the form of a donation, inheritance, waiver or transfer, provided that the receiving party did not have to pay for it.
The husband or the wife may validly sell, donate or dispose of the paraphernal property without the consent or conformity of the other spouse, and the proceeds of such disposition is considered as the exclusive property of the owner.
In fact, even the fruits and income of such paraphernal property, such as rent or harvest, is also exclusive to its owner.
However, this only applies if the property was acquired by gratuitous title during the marriage. If the property was acquired prior to the celebration of marriage, it is considered as part of the community property, even if it was acquired by gratuitous title.
In addition, the following shall also be considered as paraphernal properties:
1) Property for personal and exclusive use of either spouse. However, jewelry shall form part of the community property; and
2) Property acquired before marriage by either spouse who has legitimate descendants (children or grandchildren) by a former marriage.*
