Article 124 of the Family Code: Administration of conjugal property
Status: In force
What does Article 124 say?
The administration and enjoyment of the conjugal partnership shall belong to both spouses jointly. In case of disagreement, the husband’s decision shall prevail, subject to recourse to the court by the wife for proper remedy, which must be availed of within five years from the date of the contract implementing such decision.
In the event that one spouse is incapacitated or otherwise unable to participate in the administration of the conjugal properties, the other spouse may assume sole powers of administration. These powers do not include disposition or encumbrance without authority of the court or the written consent of the other spouse. In the absence of such authority or consent, the disposition or encumbrance shall be void. However, the transaction shall be construed as a continuing offer on the part of the consenting spouse and the third person, and may be perfected as a binding contract upon the acceptance by the other spouse or authorization by the court before the offer is withdrawn by either or both offerors.
What does it mean in plain language?
Article 124 says husband and wife manage and enjoy their conjugal partnership property together. If one spouse cannot take part, the other may manage it alone. But neither can sell or mortgage conjugal property without the court's authority or the other spouse's written consent, and without it the sale or mortgage is void. The Supreme Court has held that such a deal is void as a whole, not only as to the other spouse's half.
Article 124 is the rule for couples under the conjugal partnership of gains. That is mainly couples married before August 3, 1988 without a prenup, and couples who chose this regime in a marriage settlement (Article 75). For the absolute community, the default under the Family Code, the same rule is in Article 96.
Under conjugal partnership, each spouse keeps what he or she brought to the marriage and what he or she receives by donation or inheritance (Article 109). The common fund is made of income, fruits and what the spouses acquire through their work or by chance (Articles 106 and 117).
How does it work in real life?
Ana and Ben: a mortgage she never signed
Ana and Ben married in 1985 without a prenup, so they are under conjugal partnership. In 2024, Ben mortgages the house they bought in 1995 to get a business loan, without telling Ana. Under Article 124 and the Dailo ruling, the mortgage is void as a whole. If the lender claims the loan benefited the family, it must prove that.
Ana again: her farm from before the wedding
Ana owned a farm before she married Ben. It is her exclusive property (Article 109(1)), so Article 124 does not apply to it. Article 111, as amended by Republic Act No. 10572, says either spouse may mortgage, encumber, alienate or otherwise dispose of his or her exclusive property. The net fruits of the farm during the marriage, such as the net income from its harvests, are conjugal, though (Article 117(3)).
Celia and Dan: a lot in his name
Celia and Dan bought a lot during their marriage, but the title is only in Dan's name. Article 116 presumes the lot is conjugal, whatever name is on the title, unless the contrary is proved. If the lot is conjugal, Dan cannot sell it without Celia's written consent or court authority.
These are made-up examples to show how the rule works. They are not advice for any real case.
What does this mean in practice?
- The wedding date decides whether a couple without a prenup is under conjugal partnership or absolute community. The site's guide explains how to get a PSA marriage certificate.
- Article 116 presumes property acquired during the marriage to be conjugal, whether it is registered in the name of one or both spouses, unless the contrary is proved.
- If a spouse abandons the other without just cause, the aggrieved spouse may petition the court for receivership, judicial separation of property, or authority to be the sole administrator of the conjugal partnership property (Article 128).
- The conjugal partnership terminates on death, legal separation, annulment or a declaration of nullity, or judicial separation of property (Article 126). See effects of legal separation.
- For a full answer with more examples, see can a spouse sell conjugal property without consent? and absolute community vs conjugal partnership.
What does Article 124 say?
The administration and enjoyment of the conjugal partnership shall belong to both spouses jointly. In case of disagreement, the husband’s decision shall prevail, subject to recourse to the court by the wife for proper remedy, which must be availed of within five years from the date of the contract implementing such decision.
In the event that one spouse is incapacitated or otherwise unable to participate in the administration of the conjugal properties, the other spouse may assume sole powers of administration. These powers do not include disposition or encumbrance without authority of the court or the written consent of the other spouse. In the absence of such authority or consent, the disposition or encumbrance shall be void. However, the transaction shall be construed as a continuing offer on the part of the consenting spouse and the third person, and may be perfected as a binding contract upon the acceptance by the other spouse or authorization by the court before the offer is withdrawn by either or both offerors.
How did the Supreme Court apply Article 124 in Dailo?
In Homeowners Savings & Loan Bank v. Dailo (2005), the Second Division of the Supreme Court decided a case about a mortgage made by one spouse.
- The facts. The spouses married in 1967 and bought a house and lot during the marriage. The deed of sale named only the husband. In 1993 the husband gave another person a special power of attorney to get a bank loan secured by a mortgage on the house and lot. His wife did not know and did not consent. The loan was not paid, and the bank foreclosed and consolidated ownership. After the husband died, the wife sued.
- Which regime. The couple had no marriage settlement, so the conjugal partnership of gains governed them. The Court said that after the Family Code took effect on August 3, 1988, its chapter on conjugal partnership applied to their partnership.
- The mortgage was void as a whole. The bank argued the mortgage was at least valid as to the husband's half, as a co-owner under Article 493 of the Civil Code. The Court disagreed. Article 124 does not make that distinction: "Where the law does not distinguish, courts should not distinguish." The Court also cited its earlier ruling in Guiang v. Court of Appeals, where a sale without the wife's consent was void as a whole.
- The creditor must prove family benefit. Under Article 121(3), the conjugal partnership is liable for a debt contracted by one spouse without the other's consent only to the extent that the family may have benefited. The Court said the burden of proving that benefit lies with the creditor who claims it. The bank gave no proof, so the conjugal partnership was not held liable for the loan.
The Court denied the bank's petition, so the rulings of the lower courts declaring the mortgage void and ordering the property returned to the wife stood.
Can a void sale or mortgage still be saved?
Yes, in one way. Article 124 treats the deal as a "continuing offer" by the consenting spouse and the third person. It becomes a binding contract if, before the offer is withdrawn, the other spouse accepts it or the court authorizes it.
Which Supreme Court rulings are relevant?
Frequently asked questions
Can my husband mortgage our conjugal house without my consent?
Not validly. Article 124 says a disposition or encumbrance of conjugal property without court authority or the other spouse's written consent is void. In Homeowners Savings & Loan Bank v. Dailo (2005), the Supreme Court held such a mortgage void.
Is the mortgage at least valid as to my husband's half?
No. In Dailo, the Supreme Court said Article 124 does not distinguish the share of the spouse who made the mortgage, so the mortgage was void as a whole. The co-ownership rule of Article 493 of the Civil Code did not apply.
Does the conjugal partnership have to pay a loan my spouse took alone?
Only to the extent that the family may have benefited (Article 121(3)). In Dailo, the Court said the creditor who claims that the debt benefited the family must prove it.
The title is only in my husband's name. Is the property still conjugal?
It can be. Article 116 presumes property acquired during the marriage to be conjugal, whether it is registered in the name of one or both spouses, unless the contrary is proved. In Dailo, the deed of sale named only the husband, but the property was found to be conjugal.
Which couples are under conjugal partnership of gains?
Mainly couples married before August 3, 1988 without a marriage settlement (Article 119 of the Civil Code), and couples who chose it in a prenup (Article 75). Couples married under the Family Code without a prenup are under absolute community, governed by Article 96.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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