Before having your prenuptial agreements done in the Philippines, it may be helpful to understand the different regimes which may govern the property relations of spouses in the country, as listed in the Family Code of the Philippines.
The System of Absolute Community (or ACP – Absolute Community of Property)
This regime is a “template” in Philippine marital property relations, meaning that if the spouses do not have a valid marriage settlement (or prenup) prior to the marriage celebration, this system will automatically govern the property relations of the couple. This is the template regime because it is more in keeping with Philippine custom and family unity.
In the ACP, spouses become co-owners of all property they bring into the marriage and those acquired by each or both of them during the marriage, save for the exceptions expressly enumerated by law. At the dissolution of the marriage, the spouses or their heirs shall equally divide the community assets and liabilities.
The Conjugal Partnership of Gains (CPG)
In this system, husband and wife place in a common fund the fruits of their separate property, and the income from their work, industry or by chance. Upon dissolution of the marriage, the net gains of the partnership shall be divided equally between the parties, unless a different manner of division has been agreed upon by them in their prenuptial agreement.
The Regime of Separation of Property (or CSP – Complete Separation of Property)
Under this regime, the parties retain ownership, management and control of their separate property and those they acquire during the marriage, together with the fruits and accessions of their separate property. Each party is also wholly responsible for his or her liabilities. The spouses are only required to contribute to the family expenses proportionately with their income or value of his properties.
Following an understanding of the property regimes for spouses in the Philippines, the marrying couple can now decide on the terms they wish to appear in their prenuptial agreement.
In the prenuptial agreement, the future spouses may agree on the property regime of:
Absolute Community of Property (ACP);
Conjugal Partnership of Gains (CPG);
Complete Separation of Property (CSP);
A combination of the above regimes;
Any other regime, as long as it is not contrary to law, morals, good customs, public order or public policy.