CPG Special Rules for Certain properties, A118-120 Family Code

1.Purchased on installments

Art. 118. Property bought on installments paid partly from exclusive funds of either or both spouses and partly from conjugal funds belongs to the buyer or buyers if full ownership was vested before the marriage and to the conjugal partnership if such ownership was vested during the marriage. x x x

1) [W]hen something is bought through installment payments using a mix of [exclusive/personal] money and shared marital funds, who owns it depends on when the buyer legally became its full owner. If the ownership was finalized before the couple got married, then the property belongs to the individual buyer or buyers, even if conjugal funds were later used. But if ownership was only finalized during the marriage, then the property is considered part of the shared conjugal assets. (OpenAI ChatGPT-5 [2025], reviewed by Legal / J. Del Puerto, Accessed 12 September 2025)

Example 1: Before marrying Anna, Luis started paying for a condo unit using his savings. When they got married, he continued the payments using their joint income. Since the title was transferred to him before their wedding, the condo remained his [exclusive] property. (Ibid.)

Example 2: Carla and Irene each used their own savings to begin paying for a piece of land before they got married. However, the full ownership was only granted to them after the wedding, with some of the payments coming from their joint earnings. Because of that, the land became part of their shared conjugal property. (Ibid.)

Example 3: Miguel began buying a delivery van before his marriage to Joy, using only his personal funds at first. After they tied the knot, both of them contributed to the remaining payments. But since Miguel was already listed as the full owner before their wedding, the van stayed as his separate asset. (Ibid.)

a. Reimbursement for advances

Art. 118. x x x In either case, any amount advanced by the partnership or by either or both spouses shall be reimbursed by the owner or owners upon liquidation of the partnership. (n)

1) Costs for the improvements may be advances from:

(a) CPG;

(b) Either spouse (i.e. exclusive money/property/assets); or

(c) Both spouses (i.e., exclusive money/property/assets).

2) [I]f either spouse or their shared marital partnership paid for something on behalf of one spouse, whether before or during the marriage, those payments must be paid back [upon liquidation of the partnership]. (OpenAI ChatGPT-4 [2025], supra.)

Example 1: Before getting married, Elise started buying a small beach hut. After the wedding, her husband Marco helped finish the payments using their joint income. When their marriage later ended, Elise had to reimburse the conjugal partnership for the portion paid from their shared funds.

(Ibid.)

Example 2: Dan bought a motorcycle in his name after he and Mia got married. Although the title was his alone, he used money from their conjugal earnings to make the down payment. When their conjugal partnership was dissolved, Dan had to return that amount to the joint fund. (Ibid.)

Example 3: Tara and Sean agreed to help Sean’s brother buy farmland, with Tara using some of her own money and the rest coming from their shared funds. Although the land was placed solely under Sean’s name, when they separated years later, Sean was required to repay the conjugal fund and Tara’s individual contribution during the liquidation process. (Ibid.)

2. Amount or credit payable within a period of time

Art. 119. Whenever an amount or credit payable within a period of time belongs to one of the spouses, the sums which may be collected during the marriage in partial payments or by installments on the principal shall be the exclusive property of the spouse. x x x (156a, 157a)

A. Amount or credit payable

1) Amount or credit payable within a period of time – refers to any amount (e.g. cash payment) or credit (e.g. loan payment) payable to one of the spouses.

B. Payable within a period of time

1) Payable within a period of time – means that the amount owing requires to be settled at a stipulated date between one of the spouses and his/her debtor/obligor.

C. Amount/credit may be prior to or during the marriage

1) Under Article 119, it does not make a distinction whether the amount or credit exists prior to or after marriage. The reason being is that, under a CPG, it is possible for a spouse to have his/her cash which he/she can loan to someone else or to be recipient of payable obligation. Note that the CPG may provide for such a stipulation.

Example 1: Carla had a loan agreement with a friend before marrying Lucas, where the friend would pay her monthly over two years. Even after she and Lucas got married, each installment Carla received remained hers alone, not part of their joint property. (OpenAI ChatGPT-4 [2025], supra.)

Example 2: Before getting married, Joshua sold a small plot of land under a deal where the buyer would pay in quarterly installments. The payments he received during his marriage to Monica were still considered his personal funds, since the sale happened before they wed. (Ibid.)

Example 3: [After her marriage,] Liza had lent money from her exclusive cash/money to her cousin [with] an agreement that the debt would be repaid in several parts. When her cousin started paying her back, the money stayed under her sole ownership, not shared with Paul. (Ibid.)

a. Interests during the marriage

Art. 119. x x x However, interests falling due during the marriage on the principal shall belong to the conjugal partnership. (156a, 157a)

1) [W]hen interest is earned on a sum of money during a marriage, even if the original money or principal belongs to just one spouse, the interest gained from it while they are married becomes part of their shared property. It doesn’t matter who owns the principal amount; any interest that comes in during the marriage is considered a benefit for both spouses. (OpenAI ChatGPT-4 [2025], supra.)

Example 1: Edgar loaned a sum to a business associate years before his wedding. After he married Irene, the associate continued to pay monthly interest. Although the loan itself belonged to Edgar, the interest received during their marriage was jointly owned. (Ibid.)

Example 2: Before tying the knot, Mia invested in a long-term deposit. When she started earning interest from it during her marriage to Carlo, the interest was treated as shared income, even though the original investment was hers alone. (Ibid.)

3. Improvements on exclusive properties

Art. 120. The ownership of improvements, whether for utility or adornment, made on the separate property of the spouses at the expense of the partnership or through the acts or efforts of either or both spouses shall pertain to the conjugal partnership, or to the original owner-spouse, subject to the following rules:

When the cost of the improvement made by the conjugal partnership and any resulting increase in value are more than the value of the property at the time of the improvement, the entire property of one of the spouses shall belong to the conjugal partnership, subject to reimbursement of the value of the property of the owner-spouse at the time of the improvement; otherwise, said property shall be retained in ownership by the owner-spouse, likewise subject to reimbursement of the cost of the improvement.

In either case, the ownership of the entire property shall be vested upon the reimbursement, which shall be made at the time of the liquidation of the conjugal partnership. (158a)

1) In case an exclusive property of a spouse is improved, whether for utility or adornment, special rules apply as to the ownership of the improvements, whether the improvement:

1) Was at the expense of the CPG; or

2) Through acts or efforts of either/both spouses.

2) Special Rules:

(a) If the costs of the improvements plus the resulting increase on the value of the exclusive property with improvements is more valuable than the unimproved exclusive property, the entire exclusive property with improvements belongs to the conjugal partnership, subject to reimbursing the owner-spouse of the value of the unimproved exclusive property at the time of the improvement.

(b) If reimbursement is not possible, owner-spouse shall retain in ownership the exclusive property and the improvement subject to reimbursement for the costs of the improvement.

(c) In either case, the ownership of the entire property is vested only upon reimbursement, which should be done at the time of liquidation of the CPG.

Example 1: Carlos owned a small farm before marrying Marissa. Later, they used conjugal funds to build an irrigation system and greenhouses, which tripled the farm’s value. Because the improvements outweighed the farm’s original worth, the entire farm became part of their conjugal property. At liquidation, Carlos was entitled to reimbursement equal to the farm’s original value at [the time of the improvement]. (OpenAI ChatGPT-4 [2025], supra.)

Example 2: Evelyn inherited an old house from her parents. During her marriage to Miguel, they renovated the interiors using conjugal money, but the renovation expenses were far less than the house’s original market value. As a result, the house remained Evelyn’s separate property, though she had to reimburse the conjugal partnership for the renovation costs when their property relations were settled. (Ibid.)

Example 3: Before marrying, Liza owned a seaside lot. After their wedding, Jorge built a small cottage on it with his personal efforts and conjugal funds. The cottage did not substantially increase the lot’s value compared to its original price. Therefore, the lot continued to belong to Liza, but she had to pay back the conjugal partnership for the cost of building the cottage once the partnership was liquidated. (Ibid.)