In a Conjugal Partnership of Gains, the spouses place in a common fund the proceeds, products, and fruits and income of their separate properties and those acquired thereafter through their efforts or by chance.
The following shall remain exclusive property of the owner spouse:
That which is brought to the marriage as his or her own;
That which each acquires during the marriage by gratuitous title;
That which is acquired by right of redemption, by barter or by exchange with property belonging to only one of the spouses; and
That which is purchased with exclusive money of the wife or of the husband. (Art. 109, FC)
Property purchased before the marriage and fully paid during the marriage remains to be a separate property of either spouse. And, if a future spouse sold his property with right to repurchase before the marriage and reacquired it during the marriage, such property is still the exclusive property of said spouse. However, if the money he or she paid for the repurchase came from the conjugal assets, then, the said spouse must reimburse the conjugal partnership. Note, however, that the reimbursement shall be done at the liquidation of the conjugal partnership.
In case the property has been donated to or inherited by one of the spouses, the said property shall be an exclusive property of such spouse. Accordingly, if someone donates to a married couple a parcel of land, the said land will not be conjugal, but separate property of the spouse, each spouse owning one half of the property. And if a different proportion or designation of shares is made, such will be followed.
Purchase of Property
In a Conjugal Partnership of Gains, when there is no showing as to when the property was acquired by a spouse, the fact that the title is in one of the spouse’s name, is an indication that the property belongs exclusively to the said spouse. Consequently, if a property is purchased partly with money of the wife and partly with conjugal money, the same is partly conjugal and partly exclusive.
Presumption of Inclusion of Property In The Conjugal Partnership of Gains
In a Conjugal Partnership of Gains, all property acquired during the marriage, whether the acquisition appears to have been made, contracted or registered in the name of one or both spouses, is presumed to be conjugal unless the contrary is proved. The presumption of conjugality of properties acquired by onerous title during the marriage arises regardless of the source of the funds used to acquire the same.
Property on Installment
Property bought on installments paid partly from exclusive funds of either or both spouses and partly from conjugal funds belongs to the buyer or buyers if full ownership was vested before the marriage. And the property belongs to the conjugal partnership if such ownership was vested during the marriage. In either case, any amount advanced by the partnership or by either or both spouses shall be reimbursed by the owner or owners upon liquidation of the partnership. (Art. 118, FC)
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