Article 96 of the Family Code: Administration of community property
Status: In force
What does Article 96 say?
The administration and enjoyment of the community property 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 common 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as a binding contract upon the acceptance by the other spouse or authorization by the court before the offer is withdrawn by either or both offerors.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 96 says husband and wife manage and enjoy their absolute community property together. When one spouse cannot take part, the other may manage it alone. But neither can sell, mortgage or otherwise dispose of or encumber community property without the court's authority or the other spouse's written consent. Without that authority or consent, the sale or mortgage is void.
"Administration" means managing the property day to day: using it, keeping it, renting it out, paying its expenses. "Disposition" means giving up ownership, for example by selling. "Encumbrance" means putting a burden on the property, such as a mortgage.
Article 96 is for couples under the absolute community of property, the default regime for marriages under the Family Code without a prenup (Article 75). Couples under conjugal partnership of gains have the same rule in Article 124.
How does it work in real life?
Leo and Rina: a lot sold without her signature
Leo and Rina married in 2010 without a prenup. In 2025, Leo sells a lot they bought in 2014 to a neighbor. Rina never signed anything, and no court authorized the sale. Under Article 96, the sale is void. If Rina later accepts the sale, or a court authorizes it, before Leo or the buyer withdraws the offer, it can become a binding contract.
Grace and Paolo: a housing loan
Grace and Paolo want a housing loan secured by a mortgage on their community lot. A mortgage is an encumbrance. If Paolo signs the mortgage alone, without Grace's written consent or court authority, Article 96 makes it void. If both sign, the problem does not arise. The site's guide explains the Pag-IBIG housing loan.
Nora: a husband who left
Nora's husband left the family home years ago and cannot be found. They are separated in fact. Nora wants to sell a community property to pay for their children's needs. Because the law requires her husband's consent to the sale, Article 100(2) lets her ask the court for authorization in a summary proceeding.
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?
- Under absolute community, almost all property owned at the wedding and acquired after is common (Article 91). A spouse's exclusive property, such as an inheritance received during the marriage, follows other rules.
- Either spouse may dispose by will of his or her interest in the community property (Article 97).
- Neither spouse may donate community property without the other's consent, except moderate donations for charity or on occasions of family rejoicing or family distress (Article 98).
- Debts contracted by one spouse without the other's consent are charged to the community only to the extent that the family may have been benefited (Article 94(3)).
- 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 (Article 101).
- Couples can set different rules only in a prenup signed before the wedding (Article 77). For a full answer with more examples, see can a spouse sell conjugal property without consent?
What does Article 96 say?
The administration and enjoyment of the community property 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 common 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.
Can one spouse sell or mortgage community property alone?
No. A sale or mortgage needs one of two things:
- the written consent of the other spouse; or
- the authority of the court.
Without either, Article 96 says the disposition or encumbrance "shall be void". Oral consent is not what the article asks for: it says written consent.
The Supreme Court applied the same words of Article 124, the rule for conjugal partnerships, in Homeowners Savings & Loan Bank v. Dailo (2005). A husband had mortgaged the couple's house and lot without his wife's knowledge and consent. The Court held the mortgage void, including the part that would have been the husband's share, because the article does not make that distinction. Article 96 uses the same words for absolute community. The details of that case are on the Article 124 page.
Can a void sale still be saved?
Yes, in one way. Article 96 treats the deal as a "continuing offer" by the spouse who agreed and the buyer or lender. It becomes a binding contract if, before the offer is withdrawn:
- the other spouse accepts it; or
- the court authorizes it.
What if one spouse cannot take part?
If one spouse is incapacitated or otherwise unable to participate in the administration, the other may assume sole powers of administration. Those powers still do not include selling or mortgaging without court authority or the other spouse's written consent.
When the spouses are separated in fact and the law requires one spouse's consent to a transaction of the other, Article 100(2) says judicial authorization shall be obtained in a summary proceeding.
Frequently asked questions
Can my spouse sell our house without my signature?
Not validly, if the house is community property. Article 96 says a disposition or encumbrance without the authority of the court or the written consent of the other spouse is void.
Does a mortgage need the other spouse's consent too?
Yes. A mortgage is an encumbrance. Under Article 96, an encumbrance of community property without court authority or the other spouse's written consent is void.
Can a void sale still become valid?
Article 96 treats the transaction as a continuing offer of the consenting spouse and the buyer. It becomes a binding contract if the other spouse accepts it, or the court authorizes it, before the offer is withdrawn.
What if my spouse cannot take part in managing the property?
If one spouse is incapacitated or otherwise unable to participate, the other may assume sole powers of administration. Those powers still do not include selling or mortgaging without court authority or the other spouse's written consent.
Can my spouse donate our property?
Not without your consent. Article 98 says neither spouse may donate community property without the other's consent, except moderate donations for charity or on occasions of family rejoicing or family distress.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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