2010 Civil Law, Q7

G and B were married on July 3, 1989. On March 4, 2001, the marriage, which bore no offspring, was declared void ab initio under Article 36 of the Family Code. At the time of the dissolution of the marriage, the couple possessed the following properties:
a house and lot acquired by B on August 3, 1988, one third (1/3) of the purchase price (representing downpayment) of which he paid; one third (1/3) was paid by G on February 14, 1990 out of a cash gift given to her by her parents on her graduation on April 6, 1989; and the balance was paid out of the spouses’ joint income; and
an apartment unit donated to B by an uncle on June 19, 1987.
Who owns the foregoing properties? Explain. (5%)
If G and B had married on July 3, 1987 and their marriage was dissolved in 2007, who owns the properties? Explain. (5%)

Quick check

Under Article 147 of the Family Code, what rules govern the property relations of a man and a woman living together under a void marriage?

Under Article 147 of the Family Code, how is ownership divided when both parties in a void marriage contribute to the acquisition of property?

What is the legal status of an apartment unit donated by an uncle to one spouse prior to marriage?

Under Article 256 of the Family Code, when may the provisions of the Family Code be applied retroactively to marriages celebrated before August 3, 1988?

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Under Article 144 of the Civil Code, what is the effect of joint contribution by parties living together under a void marriage celebrated before 1988?

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1. Article 147 Co-Ownership
Under Article 147 of the Family Code, when a man and a woman live together as husband and wife under a void marriage, their property relations are governed by special co-ownership. Properties acquired by either or both of them during their cohabitation through their work or industry are presumed to be owned by them in equal shares. However, where actual monetary contributions to the purchase price of a property are proven by the parties, ownership is shared in proportion to their respective contributions, resulting in equal co-ownership when contributions are equal.

2. Exclusive Property Status
Under the property regime governing void marriages under Article 147, properties acquired prior to cohabitation or acquired gratuitously during cohabitation do not enter the co-ownership. An apartment unit donated by an uncle to one spouse prior to marriage constitutes exclusive property received through donation. Because gratuitous acquisitions remain separate property, the apartment belongs exclusively to the donee-spouse and is completely excluded from the co-ownership formed by the couple during their cohabitation.

3. Retroactive Law Effect
Under Article 256 of the Family Code, the provisions of the Family Code shall have retroactive effect insofar as they do not prejudice or impair vested or acquired rights under the Civil Code or other laws. Applying Article 147 retroactively to marriages celebrated prior to the effectivity of the Family Code on August 3, 1988 is valid when no vested rights are impaired, producing the same legal result as Article 144 of the Civil Code regarding co-ownership of property acquired through joint contribution.

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