5. Partition and Distribution of the Estate

The final judgment of nullity or annulment shall provide the following:

• Liquidation, partition, and distribution of the properties of the spouses;
• Custody and support of the common children; and
• Delivery of their presumptive legitimes.

Unless such matters had already been adjudicated in previous judicial proceedings, in which case, the final judgment of nullity or annulment need not provide for those which have already been adjudicated.

NOTE: Where there was a failure to record in the civil registry and registry of property the judgment of annulment or absolute nullity of the marriage, the partition and distribution of the property of the spouses, and the delivery of the children’s presumptive legitimes, it shall not affect third persons. (Art. 52, FC)

PARTITION AND DISTRIBUTION OF ESTATE

Partition (Civil Code, Arts. 1079 and 1082)

Partition separates, divides, and assigns property held in common among those entitled to it. The property itself or its value may be divided. Any act intended to end indivision among co-heirs, legatees, or devisees is a partition, even if it takes the form of a sale, exchange, compromise, or another transaction. No particular form is required.

Who may effect partition

• The decedent, during life or by will, provided the partition does not prejudice the legitime of compulsory heirs (Art. 1080).
• The heirs (Art. 1083).
• The court, when compelling reasons warrant division upon a co-heir’s petition (Art. 1083).
• A person who is not a co-heir and whom the decedent entrusted with the power to partition the estate after death (Art. 1081).

Who may demand partition (Art. 1083)

• A compulsory heir.
• A voluntary heir.
• A legatee or devisee.
• A person who has acquired an interest in the estate.

When partition cannot be demanded

• The testator expressly prohibited partition for a period not exceeding 20 years (Art. 1083), subject to division when a ground for dissolution of a partnership arises or the court orders it for compelling reasons.
• The co-heirs agreed not to divide the estate for a period not exceeding 10 years, renewable for another 10 years.
• Partition is prohibited by law.
• Division would make the property unserviceable for its intended use.

NOTE:

• Partition Inter Vivos (Art. 1080) – it is one that merely allocates specific items or pieces of property on the basis of the pro indiviso shares fixed by law or given under the will to heirs or successors.
• Partition is not itself a mode of acquiring ownership, nor a title, but being predicated on succession, necessitates relationship to the decedent (in case of intestacy) or a will duly probated (in case of testacy).

Prohibition to Partition (Art. 1083) 1. The prohibition to partition for a

• The prohibition to partition for a period not exceeding 20 years can be imposed on the legitime.
• If the prohibition to partition is for more than 20 years, the excess is void.
• Even if a prohibition is imposed, the heir’s mutual agreement can still make the partition.

Legal Redemption In Favor Of Co-Heirs (Art. 1088)

The right of legal redemption predicated upon the fact that the sale made by the co-heir is effected before the partition of the estate but after the death of the decedent.

Requisites: (Aguilar v. Aguilar, G.R. No. 141613)

• There must be several co-heirs
• That one of them sells his right to a stranger
• That the sale is made before the partition
• That the right of redemption must be exercised by one or more of the co-heirs within 1 month from the time they were notified in writing by the co-heir vendor
• The vendee is reimbursed for the price of the sale.

EFFECTS OF PARTITION

• Confers upon each heir the exclusive ownership of the property adjudicated. (Art. 1091)
• After the partition, the co-heirs shall be reciprocally bound to warrant the title to (warranty against eviction) and the quality of (warranty against hidden defects), each property adjudicated. (Art. 1092)
• The obligation of warranty shall cease in the following cases: (Art. 1096)
• When the testator himself has made the partition unless his intention was otherwise, but the legitime shall always remain unimpaired.
• When it has been expressly stipulated in the agreement of partition, unless there has been bad faith.
• When the eviction was due to a cause subsequent to the partition, or has been caused by the fault of the distributee of the property.

As between the deed of extra-judicial partition and the subdivision plan which contained an inadvertent error, the deed of extra-judicial partition must prevail. The subdivision plan cannot amend the deed of extra-judicial partition because that is the binding contract to which all the heirs agreed. (Ulay v. Bustamante, G.R. Nos. 231721 & 231722, J. Caguioa ponencia)

Effects of Inclusion of Intruder in Partition (Art. 1105)

• Between a true heir and several mistaken heirs – Partition is VOID only with respect to the mistaken heirs; check separately what allocation, if any, remains effective among the true heirs.
• Between several true heirs and a mistaken heir – transmission to mistaken heir is VOID
• Through error or mistake; a person believed to be an heir is included in the partition – partition is void only with respect to that person. (Art. 1105)

NOTE: Partition with respect to the mistaken heir is VOID. (Art. 1105)

A Void Will may be a Valid Partition (Paras, supra)

• If the will was in fact a partition; and
• If the beneficiaries in the void will were legal heirs

RESCISSION AND NULLITY OF PARTITION

A partition, judicial or extra-judicial, may also be rescinded on account of lesion, when any one of the co-heirs received things whose value is less, by at least one-fourth, than the share to which he is entitled, considering the value of the things at the time they were adjudicated. (Art. 1098)

Partition Made By the Testator (Art. 1099)

General Rule: A partition made by the testator cannot be impugned on the grounds of lesion.

Exceptions:

• When the legitime of the compulsory heirs is prejudiced; or
• When it appears or may reasonably be presumed, that the intention of the testators was otherwise.

Options Available to Obligor-Heir (Art. 1101)

The heir who is sued shall have the option of:

• Indemnifying the plaintiff for the loss, by payment in cash or by delivery of a thing of the same kind and quality as that awarded to the plaintiff; or
• Consenting to a new partition

NOTE: If a new partition is made, it shall affect neither those who have not been prejudiced nor those who have not received more than their just share. (Art. 1101)

Incompleteness of Partition Not a Ground for Rescission

The omission of one or more objects or securities of the inheritance shall not cause the rescission of the partition on the ground of lesion, but the partition shall be completed by the distribution of the objects or securities which have been omitted. (Art. 1103)

Omission of a Compulsory Heir in the Partition

General Rule: A partition made with preterition of any of the compulsory heirs shall not be rescinded. (Art. 1104)

NOTE: This is not preterition under Article 854. This is simply an omission of a compulsory heir in the partition; absent bad faith or fraud warranting rescission, the other persons interested must proportionately pay him his rightful share. (Non v. CA, G.R. No. 137287)

Exception: Bad faith or fraud on the part of the other persons interested. (Art. 1104)

Remedy: The other persons interested shall be proportionately obliged to pay to the person omitted the share which belongs to him. (Art. 1104)

Liquidation of community property if the termination of the marriage is by death

Liquidation of conjugal partnership property if the termination of the marriage is by death

Upon termination of marriage by death, the conjugal partnership property shall be liquidated in the same proceeding for the settlement of the estate of the deceased spouse. (FC, Art. 130)