ACP Ownership, Administration, Enjoyment, Disposition, A96-98 Family Code
1. ACP Ownership
1) In Absolute Community Property (ACP), both husband and wife co-own the community assets and properties.
2. ACP Administration and Enjoyment
Art. 96. The administration and enjoyment of the community property shall belong to both spouses jointly. x x x
1) Both spouses equally share the right to manage and use the assets that form part of their community property. Neither one can make decisions about these assets on their own without the other’s involvement. This joint responsibility ensures that both partners participate in decisions regarding family wealth acquired during the marriage. (OpenAI ChatGPT-4 [2025], reviewed by J. Del Puerto. Available at: https://chat.openai.com [Accessed: 1 May 2025])
Example 1: Mario and Luisa, a married couple under the community property regime, decided together to rent out their condominium unit. They understood that one spouse could not lease the property without the other’s consent since they both equally manage and benefit from it. (Ibid.)
Example 2: Carlos wanted to sell their family car, which was acquired during his marriage to Anna, but he had to wait for her approval because both of them had an equal say in managing community-owned property. (Ibid.)
Example 3: Jennifer couldn’t invest their jointly acquired savings in a business venture without first discussing it with her husband Ben, as both had equal rights to decide how their shared assets were used. (Ibid.)
a. Disagreement
Art. 96. x x x 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. x x x
b. Incapacity
Art. 96. x x x
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. x x x
1) If a dispute arises between the spouses about how to manage or use their shared community property, the husband’s decision will take effect by default. However, the wife has the right to challenge that decision by filing a case in court. She must do so within five years from the time a contract or action based on the husband’s decision was carried out. (OpenAI ChatGPT-4 [2025], reviewed by J. Del Puerto, supra.)
Example 1: Elena disagreed with her husband Victor’s choice to sell a piece of land they co-owned. Since Victor went ahead with the sale despite her objection, Elena filed a case in court two years later to seek legal redress, well within the five-year window. (Ibid.)
Example 2: Marco decided to invest their shared savings in a business venture that Liza strongly opposed, his decision stood. But feeling that it was detrimental to their family, Liza later turned to the court to challenge it, ensuring she did so within the legally allowed time frame. (Ibid.)
Example 3: Theresa found out that her husband Roland had leased out their jointly owned farm without her agreement. Although the lease was already signed, she consulted a lawyer and filed a legal action three years later to contest the contract, as allowed by law. (Ibid.)
1) Continuing offer
Art. 96. x x x
x x x 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. (206a)
1) If one spouse tries to sell, mortgage, or transfer community property without the other’s consent or without court approval, that action has no legal effect — it’s invalid. However, this invalid act is treated as an open offer. If the non-consenting spouse later agrees to it, or the court grants approval before the offer is taken back by either party, the transaction can become valid and legally binding. (OpenAI ChatGPT-4 [2025], reviewed by J. Del Puerto, supra.)
Example 1: Martin attempted to sell their jointly owned farm without Claire’s permission. Since she didn’t consent and no court approval was obtained, the sale had no legal effect. However, two weeks later, Claire agreed in writing, making the sale valid because the buyer hadn’t withdrawn the offer yet. (Ibid.)
Example 2: Patricia found out that her husband Leo mortgaged their co-owned property without telling her. The transaction was void at first, but the bank held the offer open. When Patricia later gave her written consent before the bank canceled the deal, the mortgage became valid. (Ibid.)
Example 3: Rafael signed a contract with a buyer to sell a car he co-owned with his wife, Mira, but did so without her consent. Although initially ineffective, the buyer waited, and Mira later accepted the transaction. (Ibid.)
3. Disposition
Art. 97. Either spouse may dispose by will of his or her interest in the community property. (n)
1) Each spouse has the right to include in their will what should happen to their own share of the community property when they die. Even though the property is jointly owned, a spouse can freely decide how their individual portion will be passed on, as long as it respects the law. (OpenAI ChatGPT-4 [2025], reviewed by J. Del Puerto, supra.)
Example 1: Carlos prepared a last will and testament in which he left his half of the community home to his sister. Since it was only his share in the property he and his wife owned together, his decision was valid. (Ibid.)
Example 2: Before passing away, Lena wrote a will stating that her share of their family business should go to her eldest daughter. Her husband Martin still retained his own half, but Lena had full authority over the disposal of her portion through her will. (Ibid.)
Example 3: Jonathan, knowing he had a serious illness, decided to bequeath his half of the couple’s farmland to his nephew. His wife Teresa continued to own her half, but Jonathan’s decision over his part was respected because it was properly expressed in his will. (Ibid.)
4. Donation
Art. 98. Neither spouse may donate any community property without the consent of the other. However, either spouse may, without the consent of the other, make moderate donations from the community property for charity or on occasions of family rejoicing or family distress. (n)
1) A spouse is not allowed to give away any part of the community property without getting the other spouse’s approval. However, there is an exception for small or reasonable gifts — each spouse may give modest donations from their shared property on special family occasions like weddings or birthdays, during times of family hardship, or for charitable causes, even without the other’s permission. (OpenAI ChatGPT-4 [2025], reviewed by J. Del Puerto, supra.)
Example 1: Rebecca wanted to donate a large portion of their jointly owned savings to a religious organization. Her husband Daniel disagreed, so she could not proceed because major donations require both spouses’ consent. (Ibid.)
Example 2: Luis gave a small cash gift from their shared funds to his niece during her graduation celebration. His wife Andrea did not object because the gift was modest and given during a happy family event — something allowed even without her express consent. (Ibid.)
Example 3: Carmen, feeling sympathy for a family member affected by a typhoon, gave a reasonable amount of money from the community fund to help with emergency needs. Even though her husband Jorge wasn’t consulted, the donation was valid because it was given during a time of family distress and was not excessive. (Ibid.)
