1. Taxation 2 │
GROSS ESTATE
Property Relations Between Spouses
FLABERT VILLASENCIO, CPA
Notre Dame of Dadiangas University

2. Learning Objectives
▪Identify Property Relations between
Spouses
▪Determine the difference between
regimes
▪Determine the value of gross estate of
spouses in different regimes.

3. System of Property Relationship
▪Absolute Community of Property
▪Conjugal Partnership of Gains
▪Complete Separation of Property
▪Any other Regime

4. Absolute Community of Property
oWhere marriage happened AFTER
August 3, 1988.
oConsists of all the property owned by
the spouses at the time of celebration
of marriage and all acquired
thereafter.

5. EXCLUDED from Communal Property
oProperty acquired during marriage by
gratuitous title and its fruits.
Absolute Community of Property

6. EXCLUDED from Communal Property
▪Property use for personal and
exclusive use. (Jewelry is a communal
property)
Absolute Community of Property

7. EXCLUDED from Communal Property
▪Properties acquired before the
marriage who has legitimate
descendants by a former marriage.
Absolute Community of Property

8. Donation of Community Property
by either Spouse
oEither Spouse may dispose by will his/her
interest
oNeither may donate without the consent of
the other
oEither may donate in moderation without
consent for charity or on occasions of family
rejoicing and distress.
Absolute Community of Property

9. Conjugal Properties
oWhere marriage happened
BEFORE August 3, 1988.
oConsists of all properties
acquired during the marriage.

10. oThose acquired by onerous title
during marriage at the expense of
common fund.
Conjugal Properties

11. ▪Obtained from labor, industry,
work of profession of either or
both of the spouses.
Example:
Salaries, income from business.
Conjugal Properties

12. oFruits during marriage from exclusive
properties.
oShare of either spouse from hidden
treasure.
oThose acquired through occupation.
oLivestock income
oThose acquired by chance
Conjugal Properties

13. EXCLUDED to Conjugal Property
oThat which is brought to marriage as her
own.
oThat which each acquires during the
marriage by gratuitous title.
oThat which is acquired by right of
redemption.
oThat which is purchased out of the
exclusive money of either spouse.
Conjugal Properties

14. oBoth spouses shall bear family expenses in
proportion to their income, in case of
insufficiency, to the current market value of
their separate properties
oTo each spouse shall belong all earnings
and fruits due or received during the
marriage
oLiabilities to creditors for family expenses
shall be solidary.
Complete Separation of Property

15. Live exclusively with each other as husband and wife
without the benefit of marriage or under a void
marriage
oEqual share
oProperties are under co-ownership (even in the
absence of proof)
oA party who did not participate in the acquisition is
deemed to have contributed jointly if his efforts are
consisted in the care and maintenance of the family
and the household
oNeither party can dispose without the consent of
the other until the termination of cohabitation
Property Regime of Unions Without Marriage

16. 1. Suffer from legal impediments
2. Not exclusively living with each other
oCommon ownership is limited to those
which they have acquired through actual
joint contribution
oIn the absence of proof, shares are equal
Property Regime in Cohabitation of Spouses
(Incapacitated to Marry)

17. Summary Table
A. No Agreement on Marriage Settlement
Date of Marriage Regime
BEFORE Aug.3,1988 Conjugal partnership of Gains
ON or AFTER Aug.3,1988 Absolute Community of Property

18. Summary Table
B. Acquisition by Gratuitous Title (Donation/Inheritance)
Regime Before Marriage During Marriage
1. Conjugal partnership
a. Principal Exclusive Exclusive
b. Fruits Conjugal Conjugal
2. Absolute Community
a. Principal Community Exclusive
b. Fruits Community Exclusive

19. Summary Table
C. Properties brought into/acquired during the marriage
Regime Before Marriage During Marriage
1. Conjugal partnership
a. Principal Exclusive Conjugal
b. Fruits Conjugal Conjugal
2. Absolute Community
a. Principal Community Community
b. Fruits Community Community