Family Code

Art. 147.
When a man and a woman who are capacitated to marry each other,
live exclusively with each other as husband and wife without the benefit of
marriage or under a void marriage, their wages and salaries shall be owned by
them in equal shares and the property acquired by both of them through their
work or industry shall be governed by the rules on co-ownership.
In the absence of proof to the contrary, properties acquired while they lived
together shall be presumed to have been obtained by their joint efforts, work or
industry, and shall be owned by them in equal shares. For purposes of this Article,
a party who did not participate in the acquisition by the other party of any
property shall be deemed to have contributed jointly in the acquisition thereof if
the formers efforts consisted in the care and maintenance of the family and of
the household.
Neither party can encumber or dispose by acts inter vivos of his or her share in
the property acquired during cohabitation and owned in common, without the
consent of the other, until after the termination of their cohabitation.
When only one of the parties to a void marriage is in good faith, the share of the
party in bad faith in the co-ownership shall be forfeited in favor of their common
children. In case of default of or waiver by any or all of the common children or
their descendants, each vacant share shall belong to the respective surviving
descendants. In the absence of descendants, such share shall belong to the
innocent party. In all cases, the forfeiture shall take place upon termination of the
cohabitation.
The Family Code (Art. 147) recognizes, and expressly governs the property
relations in, the relationship where a man and a woman live exclusively with each
other just like a husband and wife, but without the benefit of marriage (or when
the marriage is void). It is required, however, that both must be capacitated, or
has no legal impediment, to marry each other (for instance, couples under a live-
in relationship will not be covered under this provision if one or both has a prior
existing marriage). In this situation, property acquired by both spouses through
their work and industry shall be governed by the rules on equal co-ownership. Any
property acquired during the union is presumed to have been obtained through
their joint efforts. As to the homemaker, or the one who cared for and maintained
the family household, he/she is still considered to have jointly contributed to the
acquisition of a property, even if he/she did not directly participate in the
propertys acquisition.
How about if one or both partners are not capacitated to marry, as when one (or
both) has an existing or prior marriage which has not been annulled/declared
void? This is covered under Art. 148 of the Family Code, which reads:
Art. 148. In cases of cohabitation not falling under the preceding Article, only the
properties acquired by both of the parties through their actual joint contribution
of money, property, or industry shall be owned by them in common in proportion
to their respective contributions. In the absence of proof to the contrary, their
contributions and corresponding shares are presumed to be equal. The same rule
and presumption shall apply to joint deposits of money and evidences of credit.
If one of the parties is validly married to another, his or her share in the co-
ownership shall accrue to the absolute community or conjugal partnership
existing in such valid marriage. If the party who acted in bad faith is not validly
married to another, his or her shall be forfeited in the manner provided in the last
paragraph of the preceding Article.
The foregoing rules on forfeiture shall likewise apply even if both parties are in
bad faith.
In other words, under Art. 148, only the properties acquired through their ACTUAL
JOINT contribution of money, property or industry shall be owned by them in
common (in proportion to their actual contributions). There is no presumption
that properties were acquired through the partners joint effort. Please also note
that if one has a prior marriage, his/her share shall be forfeited in favor of that
previous marriage (as an aside, the children under the second relationship shall
be considered as illegitimate).

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Art. 147.

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