Article 198:In case the future spouses agree in the marriage settlements that the system of absolute community shall govern their property relations during marriage, the following provisions shall be of supplementary application.
EXPLANATION:
What is the system of absolute community?
This is one of the regimes or systems of property relations between the spouses and the default system in the absence of a prenuptial agreement or when the agreed system is null and void. This system commences at the precise moment that the marriage is celebrated, and any stipulation for the commencement of the community regime at any other time is void.
In a nutshell, the husband and the wife are considered as co-owners of all properties they bring into the marriage (those that they owned before the marriage), as well as the properties acquired during the marriage, except for certain properties express excluded by law (listed below). The rules on co-ownership applies in all matters not provided under the Family Code.
MARRIAGE SETTLEMENT. An agreement made by the parties in contemplation of marriage by which the title to certain property is changed, and the property to some extent becomes tied up, and is rendered inalienable.
It is clearly stated that when the spouses agree in marriage settlement the property relations between husband and wife shall be governed through the system of absolute community the following articles should be followed.
Article 199: In the absence of stipulation to the contrary, the community shall consist of all present and future property of the spouses not excepted by law.
EXPLANATION:
The article above means that if there is absence of agreement on doing the opposite of what is expected or wanted, or in other words IF THERE IS NO AGREEMENT at all, the property relations shall consist of all the present and future property of the spouses, which is not stated in the law. As stated in the Revised Code 1999 of Family Code of the Philippines, Article 89, “ No waiver of rights, interest, shares and effects of the absolute community of property during the marriage can be made except in the case of judicial separation of property.
When the waiver takes place a judicial separation of property, or after the marriage has been dissolved or annulled, the same shall appear in a public instrument and shall be recorded as provided by law. The creditors of the spouse who made such waiver may petition the court to rescind the waiver to the extent of the amount sufficient to cover the amount of their credits.
Article 200: Neither spouse may renounce any inheritance without the consent of the other. In case of conflict, the court shall decide the question, after consulting the family council, if there is any.
EXPLANATION:
There is a need of the consent of the other in renouncing any inheritance, no one from the couple without any evidences or witness. If conflict will be occurred, the court shall decide and take note if there is any family council.
Inheritance here means property received from a decedent, either by will or through state laws of intestate succession, where the decedent has failed to execute a valid will. Whatever one receives upon the death of a relative due to the laws of descent and distribution, when there is no will. However, inheritance has come to mean anything received from the estate of a person who has died, whether by the laws of descent or as a beneficiary of a will or trust.
Article 201: The following shall be excluded from the community:
(1) Property acquired by gratuitous title by either spouse, when it is provided by the donor or testator that it shall not become a part of the community;
(2) Property inherited by either husband or wife through the death of a child by a former marriage, there being brothers or sisters of the full blood of the deceased child;
(3) A portion of the property of either spouse equivalent to the presumptive legitime of the children by a former marriage;
(4) Personal belongings of either spouse.
However, all the fruits and income of the foregoing classes of property shall be included in the community.
EXPLANATION:
The properties excluded from the absolute community of property as above enumerated are separate properties of the spouses.
There are no provisions that apply specifically to the so called paraphernal property of the wife ( as was true in the 1950 Civil Code) or to the capital of the husband. But, the provisions of Article 145, - first sentence (infra) under Chapter 6 (on regime separation of property) can apply with respect to the above properties. Thus, as stated in Article 145 of this Code;“Each spouses shall own, dispose of, possess, administer and enjoy his or her own separate estate, without need of consent of the other.” So also, Article 142 9infra) shall apply to separate properties of spouses who are under the regime of absolute community of property. Article 142 of this code states the instances when the administration of all classes of exclusive property of either spouse may be transferred by the court to the other spouse.
In No.( 1 and 2) above, take note of what is excluded refers to the property acquired gratuitously during the marriage indicating clearly that all properties acquired gratuitously by the spouses before the marriage shall belong to the absolute community of property unless otherwise stipulated in the marriage settlement. If the donor, testator or grantor who gave the property gratuitously to the spouse during the marriage expressly provides in the deed of donation, or in the will or in the deed of grant that the property donated, willed or granted should belong to the absolute community of property, then the property shall form part of the community including fruits thereof of income therefrom. The words “donor, testator or grantor” and the words “gratuitously title.” These words do not cover those acquired by operation of law like those inherited as intestate shares.
In No. (4), it seems obvious that what is for personal and exclusive use of the spouse should belong to him or her as they are his or her personal belongings( therefore, personal property0 like clothing, suitcase, books, etc. except jewelry even he or she personally uses the same which shall belong to the absolute community of property. As already stated, jewelry here refers to the precious metals, stones, etc. which cost dearly or considerably.
In No. (3) above, the property was acquired before the marriage (as his or her separate property or share in the property regime under the former marriage) which shall include the fruits and income of such property. It seems that for this property to be excluded as community property, the condition is that the spouse “has legitimate descendants by a former marriage” as otherwise; the said property shall form part of the absolute community of property, unless otherwise stipulated in the marriage.
Article 202: Ante-nuptial debts of either spouse shall not be paid from the community, unless the same have redounded to the benefit of the family.
EXPLANATION:
It is justified by the principle behind No. 3, Article 91 of the Family Code of the Philippines 2009 Revised Edition as stated “ Debts and obligations contracted by either spouse without the consent of the other to the extent that the family may have been benefited”supra and in keeping with the rule against unjust enrichment at the expense of innocent third person or creditors.
To the extent that if family is benefited, the community property is answerable even if the ante-nuptial debt is incurred by only one spouse shall not be paid from the community.And to the extent that the family is not benefited, only the separate property of the spouse concerned will be answerable.
Article 203: Debts contracted by both spouses or by one of them with the consent of the other shall be paid from the community. If the common property is insufficient to cover common debts, the same may be enforced against the separate property of the spouses, who shall be equally liable.
EXPLANATION:
The debts contracted during the marriage by the spouse actually administering the community (although the law provides for joint administration, it is impossible to make this work in all cases; as in the case of absence of a spouse where the court may designate in appropriate cases one of the spouses to administer )must be for the benefit of the marriage to make the same properly chargeable to the community property but if the debts were incurred by both spouses or by one with the consent of the other, no benefit need be proved by the creditor to make the community property answerable thereto.
Article 204: Debts contracted by either spouse without the consent of the other shall be chargeable against the community to the extent that the family may have been benefited thereby.
EXPLANATION:
To the extent that the family is benefited, the community property is answerable even if the debt is incurred by only one spouse without the consent of the other; and to the extent that the family is not benefited, only the separate property of the spouse concerned will be answerable.
