Inheritance Rights for Property Acquired During Marriage

Below is a comprehensive discussion of inheritance rights over property acquired during marriage in the Philippines. This overview focuses on key legal provisions, principles, and common scenarios that arise in inheritance matters under Philippine law. While this text provides a substantial guide, it is not meant as formal legal advice. For specific concerns, it is always best to consult a qualified attorney.

1. Overview of the Governing Laws and Key Terms

  1. Family Code of the Philippines (Executive Order No. 209, as amended by RA 8533): Enacted in 1987 and made effective on August 3, 1988. This law primarily governs marriages solemnized on or after this date.
  2. Civil Code of the Philippines (Republic Act No. 386): Governs marriages entered into prior to the effectivity of the Family Code.
  3. Property Regimes: These are the systems that determine how the property of the spouses is owned, administered, and disposed of during marriage, as well as how it will be distributed upon death or the dissolution of marriage.
    • Absolute Community of Property (ACP)
    • Conjugal Partnership of Gains (CPG)
    • Complete Separation of Property (contractually agreed or judicially decreed)
    • Property Regime under the Civil Code (for marriages prior to the Family Code) – generally Conjugal Partnership of Gains, unless spouses agreed otherwise in a prenuptial agreement.

When discussing inheritance, it is crucial to clarify which property regime applies to the marriage, as this determines what forms part of the marital estate and how property is succeeded to by heirs.

2. The Default Property Regime Under the Family Code

2.1. Absolute Community of Property (ACP)

Applicability

  • For marriages celebrated on or after August 3, 1988, without a prenuptial agreement, the default property regime is the Absolute Community of Property (ACP).

Scope of ACP

  • Under ACP, all property owned by the spouses before the marriage as well as those acquired during the marriage generally form part of the community.
  • Certain properties are excluded, such as:
    1. Property acquired by either spouse during the marriage by gratuitous title (i.e., donation, inheritance) – unless the donor or testator expressly states otherwise.
    2. Property for personal and exclusive use of either spouse (like clothes, personal items).
    3. Property acquired prior to marriage by either spouse who has legitimate descendants by a former marriage. (This is pursuant to Article 92 of the Family Code.)

Inheritance and ACP

  • Property that forms part of the community will be subject to liquidation upon the death of one spouse.
  • If the deceased spouse leaves heirs (including the surviving spouse and children), the net estate (after deducing the share of the surviving spouse in the community) will be distributed in accordance with the rules on succession under the Civil Code (as adopted under the Family Code).
  • Any property inherited by one spouse alone during the marriage does not automatically become part of the absolute community if acquired by gratuitous title (unless explicitly designated otherwise by the testator or donor). However, if income or fruits are generated from that inherited property, such fruits or income generally form part of the community property.

2.2. Conjugal Partnership of Gains (CPG) Under the Family Code

When Does CPG Apply Today?

  • CPG applies to marriages solemnized before the effectivity of the Family Code (unless otherwise agreed).
  • Under the Family Code, spouses are free to stipulate in a prenuptial agreement that they wish to adopt a CPG regime.
  • If the spouses entered into marriage under the Civil Code (prior to August 3, 1988), the default regime was Conjugal Partnership of Gains unless another arrangement was declared in a valid marriage settlement.

Property Included

  • The Conjugal Partnership typically includes only the fruits, income, and gains generated from:
    1. The properties owned by each spouse prior to marriage.
    2. Property acquired during the marriage by onerous title (i.e., purchased or exchanged for valuable consideration).
  • Similar to ACP, property acquired by gratuitous title (such as inheritance or donation) remains separate property of the spouse to whom it is given during the marriage. However, the fruits or income derived therefrom form part of the conjugal partnership.

Inheritance under CPG

  • Upon the death of a spouse, the conjugal partnership is liquidated. Each spouse is entitled to half of the net gains of the partnership, not half of each property. That half is called the surviving spouse’s share.
  • The remainder (i.e., the deceased spouse’s half) is then transmitted to the decedent’s heirs under the rules on succession.

3. Property Acquired During Marriage and Inheritance

3.1. Classification of Property Acquired During Marriage

  1. Onerous Title

    • Generally belongs to the community (ACP) or conjugal partnership (CPG), depending on the regime.
    • In ACP, any acquisition (unless expressly excluded by law or by the terms of donation/inheritance) goes to the community.
    • In CPG, only the “gains” or income therefrom are conjugal. If the property itself was bought entirely during the marriage using conjugal funds, it is presumed conjugal.

  2. Gratuitous Title (Inheritance, Donation)

    • Under both ACP and CPG, property inherited by one spouse alone remains that spouse’s exclusive property (or separate property), unless the testator or donor stipulates that it should go to both spouses.
    • However, any fruits or income derived from that inherited property during the marriage forms part of the ACP or the CPG (depending on the regime).

  3. Improvements

    • If an inherited property is improved using community or conjugal funds, the improvement’s value or the resulting increase in the property’s value may be subject to the community or conjugal partnership.
    • Determining the portion that belongs to each spouse upon dissolution of marriage often involves appraisals and may be a common source of legal disputes.

3.2. Succession and Distribution Upon Death

When one spouse dies, the following steps generally apply:

  1. Inventory and Liquidation of the Marital Property

    • Identify all the properties belonging to the regime—whether ACP or CPG.
    • Determine the exclusive or separate properties of each spouse.
    • Ascertain the portion constituting the deceased spouse’s share in the community or partnership.

  2. Distribution of the Deceased Spouse’s Estate

    • Under testate succession (with a valid will): The will dictates how the net estate is distributed, provided mandatory legitimes of compulsory heirs (i.e., children, surviving spouse) are respected.
    • Under intestate succession (no valid will): The estate is distributed according to the rules on intestacy. Generally, the surviving spouse and children (or descendants) are compulsory heirs, sharing in the inheritance as provided in the Civil Code.

3.2.1. Intestate Succession Basic Rules

  • If the deceased leaves a surviving spouse and legitimate children, the estate is generally divided equally among all the children, with the surviving spouse entitled to a share equal to one legitimate child’s share (Article 996 of the Civil Code).
  • If there are no children, the surviving spouse inherits alongside the decedent’s parents or siblings, depending on who survives.

3.2.2. Legitimes

  • “Legitime” refers to the portion of one’s property which the law reserves for certain heirs (children, surviving spouse, ascendants) and which cannot be impaired by a will.
  • The spouse’s legitime (where there are children) is one-fourth of the hereditary estate if there are legitimate children, though actual computations can be more complex when factoring in all heirs.

4. Property Acquired Prior to Marriage vs. During Marriage

4.1. Prior to Marriage

  • In ACP, property owned prior to marriage (as well as its fruits or income after the marriage) generally belongs to the community, unless excluded under Articles 92 or 93 of the Family Code.
  • In CPG, property owned prior to marriage remains separate, but the fruits or income from it during the marriage belong to the conjugal partnership.

4.2. During Marriage

  • In ACP, almost everything acquired belongs to the community, except properties acquired gratuitously by one spouse (and certain items enumerated by law).
  • In CPG, property acquired gratuitously remains separate, but the gains or fruits it produces go to the conjugal partnership.

5. Effect of Death on the Property Regime

  1. Dissolution of Regime

    • The marriage is dissolved by the death of a spouse (or by annulment/legal separation, but here we focus on death).
    • Dissolution triggers liquidation of ACP or CPG.

  2. Liquidation and Partition

    • In ACP, the surviving spouse and the estate of the deceased spouse each get half of the community property. The deceased spouse’s half constitutes the decedent’s net distributable estate for succession purposes.
    • In CPG, only the conjugal gains (conjugal partnership property) are divided equally; each spouse’s exclusive property remains his or hers. The decedent’s share of the conjugal partnership property is added to the decedent’s exclusive property to form the hereditary estate.

  3. Succession

    • Once the net estate of the deceased spouse is determined, succession law is applied. The surviving spouse has a share both from the liquidation of the regime (the spouse’s share of the community or partnership) and from the inheritance share as a compulsory heir.

6. Common Scenarios and Illustrative Examples

  1. Spouse A Inherits a House During Marriage

    • Under ACP or CPG, the house is exclusive property of A because it was acquired by gratuitous title.
    • However, if the house is rented out and generates rental income, such rental income belongs to the community (ACP) or the partnership (CPG).
    • If Spouse A later dies, that inherited house forms part of A’s own estate (because it is A’s exclusive property). It will pass to A’s heirs, including the surviving spouse and any children.

  2. Spouses Acquire a Condo Unit During the Marriage Using Salaries

    • Under ACP, the condo unit is automatically community property.
    • Under CPG, the condo unit is presumed conjugal because it was acquired for valuable consideration using conjugal funds earned during the marriage.
    • When Spouse B dies, the condo’s ownership is first split into the spouse’s share and the decedent’s share. Then the decedent’s share goes to B’s estate, which is distributed among B’s heirs.

  3. Death Without a Will, Surviving Spouse, and Two Children

    • Assume the regime is ACP: the entire community is split 50–50. One half goes to the surviving spouse. The other half is the decedent’s net estate.
    • That net estate is then divided among the two children and the surviving spouse equally (i.e., each child and the surviving spouse gets one-third of that half).
    • The final result is that the surviving spouse ends up with (a) 50% of the community plus (b) 1/3 of the decedent’s 50%. The children get the remaining shares.

7. Prenuptial Agreements and Separation of Property

  1. Prenuptial Agreements

    • Spouses may stipulate in a marriage settlement that they adopt either the Conjugal Partnership of Gains, Complete Separation of Property, or any other regime allowed by law.
    • Such an agreement must be executed before the marriage and must follow formal legal requirements (in a public instrument, etc.).

  2. Judicial Separation of Property

    • In certain circumstances (e.g., insolvency, abandonment, loss of parental authority, or separation decreed by the court), the court may order a separation of property regime.
    • Where there is a judicial separation of property in effect at the time of a spouse’s death, the distribution rules differ since the spouses effectively manage their own properties separately.

8. Key Points to Remember

  1. Identify the Governing Property Regime

    • If the marriage was celebrated on or after August 3, 1988 without a prenuptial agreement, the regime is Absolute Community of Property.
    • If it was celebrated before August 3, 1988, the regime is likely Conjugal Partnership of Gains unless otherwise agreed.

  2. Understand the Classification of Each Asset

    • Determine whether it is exclusive (separate) property or part of the community/conjugal partnership. This classification often depends on whether it was acquired by onerous or gratuitous title, and on the time (before or during marriage).

  3. Fruits or Income

    • Even if property is excluded from the community or partnership, income or fruits from that property typically belong to the ACP or CPG unless stated otherwise by law or the parties.

  4. Succession Laws

    • The surviving spouse has two important rights in a death scenario: (a) the spouse’s share of the marital property, and (b) the inheritance share as a compulsory heir from the deceased spouse’s estate.

  5. Legitime

    • Compulsory heirs cannot be deprived of their legitime, subject to a few exceptions (e.g., disinheritance under grounds recognized by law).

9. Practical Recommendations

  1. Keep Accurate Records

    • Maintain records of property acquired before the marriage, inherited property, as well as any donations. This documentation clarifies classification when the estate is to be settled.

  2. Execute a Will or Marriage Settlement if Desired

    • To avoid confusion or disputes, executing a proper last will or a prenuptial agreement can help clarify intentions regarding property distribution.

  3. Seek Legal Counsel

    • If in doubt about classification of specific property, or if complex estate arrangements are involved (e.g., multiple marriages, mixed families, significant business interests), consult an attorney for tailored advice.

10. Conclusion

Inheritance rights for property acquired during marriage in the Philippines hinge largely on the property regime of the spouses (ACP or CPG) and the rules of succession. For marriages governed by the Family Code, the default is Absolute Community of Property unless there is a valid prenuptial agreement. Under ACP, almost all properties of the spouses become common unless excluded by law; under CPG, properties acquired gratuitously remain separate, while those acquired by onerous title (and the fruits or income of all properties) generally form part of the partnership.

Upon the death of a spouse, the first step is always to identify and classify the properties, liquidate the regime, and only then distribute the deceased spouse’s net estate to the legal heirs (including the surviving spouse and children). Understanding these basic principles—and knowing when to seek professional legal advice—helps ensure that estate matters and inheritance rights are handled correctly and peacefully.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

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