BAHAY O KASAL? The most common question for a couple planning to settle down. The question is, are you even aware that there’s a law governing the way you handle your property prior and during your marriage?
Planning for your future as a couple goes beyond just picking out wedding details. It's important to consider the legal aspects of your life together, including how you'll handle your property. In the Philippines, the Family Code of the Philippines, specifically Executive Order 209 of 1987, governs the property relationship between husbands and wives.
Under this law, there are three property regimes that couples can choose from:
ABSOLUTE COMMUNITY OF PROPERTY: This regime means that all the assets and debts acquired by either spouse before or during the marriage belong to both of them equally. This includes properties, investments, and even debts. In the event of a separation or divorce, all assets and debts will be divided equally between the spouses.
CONJUGAL PARTNERSHIP OF GAINS: Under this regime, each spouse retains ownership of their pre-marital assets, but any property acquired during the marriage becomes co-owned by both spouses. If one spouse starts a business or invests in real estate during the marriage, the other spouse automatically becomes a co-owner of those assets. In the event of a separation or divorce, the property acquired during the marriage will be divided equally between the spouses.
COMPLETE SEPARATION OF PROPERTY: This regime allows each spouse to maintain separate ownership of their pre-marital assets and any property acquired during the marriage. Each spouse has the right to manage their own assets independently. In the event of a separation or divorce, each spouse keeps their own assets and is responsible for their own debts.
When choosing a property regime, it's important to discuss your preferences with your partner and seek legal advice. You can consult with a real estate service practitioner or a lawyer specializing in family law to guide you through the process. They can help you understand the implications of each property regime and assist you in drafting a marriage settlement that reflects your wishes.
To ensure that your property regime is legally recognized, it's crucial to have your marriage settlement in writing and signed by both spouses. It should be executed before your wedding ceremony. Registering your marriage settlement with the local civil registry and property registries will help protect your rights and interests, especially in case of any disputes in the future.
Remember, planning your property regime before getting married can provide clarity and protection for both spouses. By understanding the options available to you and seeking professional guidance, you can make informed decisions that align with your goals and aspirations as a couple.
By: Carlo Jay (CJ) Manalo
Bachelor of Science in Real Estate Management
Pamantasan ng Lungsod ng Maynila
Legal Aspects of Real Estate Sales
Source: Family Code of the Philippines