What Happens to Property Owned Before Marriage?

In the past, the majority of Filipinos used to hold off on purchasing a home until after they were married. As a result, couples who stayed with their parents until they were married were able to save enough to purchase their idaeal house. These days, it's different as people are purchasing houses even before they get married.

There are a number of reasons for this, including the desire to be near to work and the desire for greater freedom.

Of course, if you're thinking about getting married, you'll want to know what will happen to your property. The good news is that the guidelines are simple, but you'll still want to know your choices so you can decide what's right for you and your partner.

What is Property ownership?

Having a piece of real estate has always been a difficult proposition. As a result of marriage, this could become a little bit more complicated.

Many individuals wonder how marital status affects ownership, among other things. Questions are being asked like during marriage, are properties bought while single counted as marital property, or are they considered as separate property? Is it possible to sell or transfer marital property without the other spouse's knowledge or consent? If a couple's union has broken or got separated, how should the Family Code of the Philippines be applied?

In answering this, let's try to know the legal meaning of the term "conjugal" first.

What is conjugal property?

In the context of marriage, conjugal property refers to all of the property and assets that a married couple has. The Family Code deems any property obtained before to or during marriage to be conjugal property, regardless of when it was purchased. As a result, whatever property that a spouse had when they were single is likewise owned by their wife upon marriage and vice versa. When a couple marries, some or all of their assets are transferred to the new pair as "conjugal property." According to Philippine law, you may acquire all or a portion of your spouse's property under the sanctity of marriage.

What happens to the ownership of property after a legal separation? To get to the bottom of this, we first need to examine the circumstances leading up to, during, and after the marriage.

Does the conjugal property include property acquired before marriage?

In order to gain a rough notion of how marriage impacts home ownership, there are two property regimes that may be referred to:

Conjugal Partnership of Gains

These rules only apply to pre-1988 unions since they state that property obtained before a marital union or marriage, this is called "kasal" in Tagalog, is the exclusive property of the buyer.

Before

Under this rule, whatever property the spouse acquires while he is still unmarried is solely his. The same holds true for the wife, whose property obtained while she was unmarried is likewise hers to claim as her own. Paraphernal property is the legal word for this asset. In short, each partner's separate property remains their own.

During

If you and your spouse have a joint ownership in a business or other venture together, you and your spouse will be entitled to the profits, goods, and income that originate from that partnership as this is considered conjugal property. With this, answering the question, "how does independent property become marital property?" is now possible. As a result, all of the properties owned by the couple are treated as part of a single estate, and all income, as well as other benefits generated by it, is considered shared. As long as the couple is married, the same holds true for the acquisition of property. To be clear, the term "conjugal property" refers to assets that belong to both partners in a marriage.

After Marriage

A couple's pre-marital property purchases are returned to their original owners if the marriage ends and the pair applies for formal separation or annulment. Even pre-marital property that was obtained before the marriage might be sold without the other party's permission.

Since the couple's assets have been legally separated, they are no longer considered marital property and are split equally between them. Because these assets are deemed conjugal, they must be divided equally between the spouses in order to be sold. When you meet with a family lawyer about how to file a legal separation in the Philippines, they will explain this property split issue.

Absolute Community of Property

On July 6, 1987, then-President Corazon Aquino brought into law Executive Code No. 209, or the Family Code of the Philippines. For couples who wed on or after August 3, 1988, the Family Code of 1987 under community property state that any property acquired before to or during the marriage is immediately deemed conjugal property.

Before and During

If a property is obtained before or during the marriage, it is deemed conjugal property under the Absolute Community of Property clause and must be included in the community property funds. As a result, any property acquired or built by a husband while he was still single is deemed conjugal and owned by his wife when they wed.

Paraphernal property, which refers to any property that a woman acquires while unmarried, becomes her husband's property upon marriage.

After Marriage

Married couples that fall under the Absolute Community of Property are entitled to an equal share of their conjugal property if they decide to end their marriage via divorce or a court decree of separation.

Prenuptial Agreements

The Absolute Community of Property is the logical regime to apply in recent and future marriages. There are no provisions in the law for property exclusivity but couples may still use prenuptial agreements to keep a marriage separate property if they would like to do so.

A prenuptial agreement is, as the name implies, an agreement made before the marriage to resolve financial matters and property ownership. It's a method for identifying whose assets belong to the husband or wife, which is also called paraphernal property.

Exempted properties from the Property Regime?

Property bought before marriage is excluded under the Conjugal Partnership of Gains property rule. A spouse's exclusive income and a spouse's gratuitous title are not subject to the regime's property rules while the couple is still married. Donated or inherited property is known as a gratuitous title.

Property obtained via gift or inheritance during marriage is excluded from the property regime under the new Family Code's Absolute Community of Property unless the donor indicates that the contribution should be a conjugal property. The property regime does not apply to items purchased for personal use, with the exception of jewelry. Jewelry is a valuable asset since it may be sold and generate cash.

Absolute Community Property states that there's an exemption to the properties acquired during a previous marriage and income derived from that property for a Filipino spouse who was previously married and had children from that marriage. The purpose of this rule is to safeguard the interests of the children of the previous marriage.

Property ownership is truly a complicated topic to discuss but what is important is that the interests of the children of both parties can be protected.

If you are looking for a brand new home that can give you a sense of stability and sustainability--- and something that your children can find beneficial and valuable even as the years go by-- then, Lumina Homes is a great choice!

With its over 50 projects nationwide, you can surely find a property that will best suit your family's lifestyle and needs. Make your reservations now and secure your family's future with Lumina Homes!