Marriage Settlement (Prenuptial Agreement) and Introduction to Property Relations in Marriage

What are the differences between absolute community, conjugal partnership of gains, and complete separation of property? Somebody asked this question some time ago, but we were not able to immediately post a discussion on this matter due to heavy law office work. This is also the same reason why we are constrained to break down the discussion into six parts, as follows: (1) Prenuptial agreements and introduction to property relations between husband and wife; (2) The system of absolute community; (3) Conjugal partnership of gains; (4) Complete separation of property; (5) Donations by reason of marriage; and (6) Comparison of the various types of property relations between spouses under the Family Code.

There are related topics already discussed, such as the property relations between a man and a woman living together without being married. For this part (Part I), let’s talk about prenuptial agreements and a brief introduction on the property relations between husband and wife.

AGREEMENT BEFORE MARRIAGE

A man and a woman who are planning to get married may enter into a contract defining or providing for their property relations during marriage. This is called a prenuptial agreement” or “marriage settlement.”

The marriage settlement or prenuptial agreement, or any modication thereof, must be made BEFORE the celebration of the marriage.

It is called a “prenuptial” agreement because it must be executed BEFORE marriage. Agreements or changes after the marriage ceremony, except in cases of judicial separation of property during the marriage, are not valid. This means that the spouses could not simply agree later on to change their property relations, except upon a petition filed in court.

FORM OF MARRIAGE SETTLEMENT

The marriage settlement and any modification thereof shall be in writing, signed by the parties and executed before the celebration of the marriage. Also, before the marriage settlement may prejudice third persons, like creditors, the marriage settlement must be registered in the local civil registry where the marriage contract is recorded, as well as in the proper registries of properties.

MINORS AND PERSONS UNDER CIVIL INTERDICTION

The law generally speaks of “minors” as those who are under 18 years old. For purposes of the provisions on marriage settlement, however, a “minor” refers to those at least 18 years old but below 21, who needs parental consent to get married. Those who are designated by law to give consent, primarily the parents, must also sign the marriage settlement in order for it to be valid.

On the other hand, for the validity of marriage settlements executed by persons on whom the sentence of civil interdiction has been pronounced or who is subject to any other disability, the guardian appointed by a competent court must be made a party.

EFFECT OF MARRIAGE NOT PUSHING THROUGH

A marriage settlement, including any donations by reason of marriage (donations propter nuptias, which will be discussed later in Part 5), is rendered void if the marriage does not take place. An exception to this rule are those stipulations that do not depend on the celebration of the marriages, such as the recognition of an illegitimate child.

PROPERTY RELATIONS TO CHOOSE FROM

The future spouses may agree to the following: (1) System of absolute community; (2) Conjugal partnership of gains; (3) Complete separation of property; or (4) any other regime or system, so long as it is not contrary to law, morals, good customs, public order or public policy.

In the absence of a marriage settlement (or when the regime agreed upon is void), the property relations between the spouses shall be governed by the system of absolute community of property. There is no sense entering into a marriage settlement when the future spouses prefer the system of absolute community, as it is the default system in the absence of a valid agreement. The spouses may, however, want to provide for certain modifications to any of the regimes or system stated above.

APPLICABLE LAW

In the absence of a contrary stipulation in a marriage settlement, the property relations of the spouses shall be governed by Philippine laws, regardless of the place of the celebration of the marriage and their residence. This rule shall not apply: (1) Where both spouses are aliens; (2) With respect to the extrinsic validity of contracts affecting property not situated in the Philippines and executed in the country where the property is located; and (3) With respect to the extrinsic validity of contracts entered into in the Philippines but affecting property situated in a foreign country whose laws require different formalities for its extrinsic validity.

P&L Law

25 thoughts on “Marriage Settlement (Prenuptial Agreement) and Introduction to Property Relations in Marriage

  1. Le-Anne

    Can someone be prisoned if she/he already signed to prenuptial agreement but did’nt attend the wedding??????? Please I need an answer

    Reply
  2. Sarah

    Dear Atty. Fred,

    I wish to be enlightened on the process of correcting an entry in our marriage certificate. My husband and I executed a Pre-nuptial Agreement on October 7, 2016 prior to our marriage on October 10, 2016. Our pre-nuptial agreement contains a confidentiality clause barring the both of us from making the existence and contents of the said agreement in public. When we got married, the solemnizing officer did not ask us if we have a pre-nuptial agreement.

    On 14 March 2018, my husband and I decided to have our notarized Pre-nuptial Agreement annotated/annexed on our Certificate of Marriage. Thus, we went to the local civil registry in Meycauayan, Bulacan, where we celebrated our matrimony, to submit the copy of our Pre-nuptial Agreement and other required documents. The City Registrar pointed to us that in our Certificate of Marriage, the portion where the existence or non-existence of a marriage settlement was indicated, shows that we didn’t execute a marriage settlement prior to marriage and further explained that marriage settlement and pre-nuptial agreement are one and the same. She then advised us to have our Certificate of Marriage corrected by filing a Petition for Correction of Entry in court since according to her, the error is not typographical error as contemplated by law hence she doesn’t have the authority to correct the erroneous entry.

    Is the Local Civil Registrar correct in advising us to file a Petition for Correction of Entry before the court instead of just an extrajudicial correction of the error since by mere looking and further investigation on the Pre-nuptial Agreement that we submitted, she will right there and then determine the veracity and truthfulness of the agreement? The solemnizing officer took it upon himself and assumed that we didn’t have a pre-nuptial agreement, when in truth and in fact, we have one. I hope you could shed light on this matter.

    Thank you very much in advance and hoping for your prompt and immediate response.

    Reply
  3. June

    gud evening,Atty…I just want clarification…what does it mean…if the statement is ” have not entered into a Marriage Settlement”?…thank you po…

    Reply

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