2017 Civil Law, Q9

Danny and Elsa were married in 2002. In 2012, Elsa left the conjugal home and her two minor children with Danny to live with her paramour. In 2015, Danny sold without Elsa’s consent a parcel of land registered in his name that he had purchased prior to the marriage. Danny used the proceeds of the sale to pay for his children’s tuition fees.
Is the sale valid, void or voidable? Explain your answer. (3%)

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Under Article 75 of the Family Code, what property regime governs spouses married in 2002 without a marriage settlement?

Under Article 91 of the Family Code, what happens to real property acquired by a spouse prior to marriage under absolute community?

Under Article 96 of the Family Code, what is the legal effect of selling community property without the written consent of the other spouse?

Does a spouse's abandonment of the conjugal home authorize the remaining spouse to sell community property unilaterally?

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Why is Danny's sale of the parcel of land void even though he used the proceeds to pay for his children's tuition fees?

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1. Absolute Community Regime
Under Article 75 of the Family Code, in the absence of a marriage settlement or when the regime agreed upon is void, the system of absolute community of property shall govern the property relations of spouses married during the effectivity of the Family Code. Under Article 91, all property owned by the spouses at the time of the celebration of the marriage or acquired thereafter forms part of the community property, unless expressly excluded by law or by the marriage settlement. Consequently, real property purchased prior to marriage by one spouse automatically becomes community property upon marriage.

2. Spousal Consent Requisite
Under Article 96 of the Family Code, the administration and enjoyment of the community property belong to both spouses jointly. In case of disagreement, the husband's decision shall prevail, subject to recourse to the court by the wife within five years. However, any disposition or encumbrance of community property by one spouse without the written consent of the other spouse or authority of the court is void. Abandonment by one spouse or the application of sale proceeds to family expenses does not validate an unauthorized disposition made without mandatory written consent or judicial approval.

3. Void Disposition Effects
Under Article 96 of the Family Code, an unauthorized disposition of community property is void ab initio rather than merely voidable. The transaction produces no legal effect and cannot be ratified by the sole act of the alienating spouse. Although the proceeds may have been utilized for family necessaries such as children's tuition fees, the unilateral nature of the transaction renders the contract of sale completely void. The proper remedy for a spouse seeking to sell community property without the other's consent is to obtain authorization from the court.

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The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

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