b. Donation Propter Nuptias

K. Property Relations Between Spouses (Family Code, arts. 74-81)

• Donation Propter Nuptias; Void Donations – Family Code, arts. 82-83, 86- 87, 43(3) and 50
• Marriage Settlements – Family Code, arts. 75-81
• Absolute Community of Property Regime – Family Code, arts. 84 and 88-104
• Conjugal Partnership of Gains Regime – Family Code, arts.105- 133
• Separation of Property Regime – Family Code, arts. 143-146
• Judicial Separation of Property – Family Code, arts. 134-142
• Property Regime of Unions Without Marriage – Family Code, arts. 147- 148

Donation Propter Nuptias; Void Donations – Family Code, arts. 82-83, 86- 87, 43(3) and 50

Art. 82. Donations by reason of marriage are those which are made before its celebration, in consideration of the same, and in favor of one or both of the future spouses. (126)

Art. 83. These donations are governed by the rules on ordinary donations established in Title III of Book III of the Civil Code, insofar as they are not modified by the following articles. (127a) Art. 86. A donation by reason of marriage may be revoked by the donor in the following cases: (1) If the marriage is not celebrated or judicially declared void ab initio except donations made in the marriage settlements, which shall be governed by Article 81;

(2) When the marriage takes place without the consent of the parents or guardian, as required by law;

(3) When the marriage is annulled, and the donee acted in bad faith;

(4) Upon legal separation, the donee being the guilty spouse;

(5) If it is with a resolutory condition and the condition is complied with;

(6) When the donee has committed an act of ingratitude as specified by the provisions of the Civil Code on donations in general. (132a) Art. 87. Every donation or grant of gratuitous advantage, direct or indirect, between the spouses during the marriage shall be void, except moderate gifts which the spouses may give each other on the occasion of any family rejoicing. The prohibition shall also apply to persons living together as husband and wife without a valid marriage. (133a) Art. 43. The termination of the subsequent marriage referred to in the preceding Article shall produce the following effects: (3) Donations by reason of marriage shall remain valid, except that if the donee contracted the marriage in bad faith, such donations made to said donee are revoked by operation of law; Art. 50. The effects provided for by paragraphs (2), (3), (4) and (5) of Article 43 and by Article 44 shall also apply in the proper cases to marriages which are declared ab initio or annulled by final judgment under Articles 40 and 45.

The final judgment in such cases shall provide for the liquidation, partition and distribution of the properties of the spouses, the custody and support of the common children, and the delivery of the children's presumptive legitimes, unless such matters had been adjudicated in previous judicial proceedings.

All creditors of the spouses as well as of the absolute community or the conjugal partnership shall be notified of the proceedings for liquidation.

In the partition, the conjugal dwelling and the lot on which it is situated, shall be adjudicated in accordance with the provisions of Articles 102 and 129.

Kinds As To Effectivity

• Inter vivos - takes effect during the lifetime of the donor, even though the property shall not be delivered till after donor death or even though it is subject to resolutory or suspensive condition (Art. 729 and Art. 730).
• Mortis Causa - takes effect upon the death of the donor and shall be governed by the rules of succession (Art. 728)
• Propter Nuptias - Donation by reason of and in consideration of marriage, before its celebration, in favor of one or both of the future spouses (Art. 82, Family Code)

Requisites of a Valid Donation Propter Nuptias

To be efficacious, it must be:

• made before the celebration of the marriage,
• In consideration of the marriage, and
• In favor of one or both of the future spouses. (Pineda, 2011)

NOTE: Absent any of the above essential elements there is no donation propter nuptias although there might be an ordinary donation if the required formalities are complied with (Art. 749, NCC). (Ibid.)

Donation propter nuptias vs. Ordinary Donation

Wedding Gifts

Donations propter nuptias are wedding gifts but not all wedding gifts are donations propter nuptias, for said wedding gifts may be given after the celebration of the marriage. (Pineda, 2011, citing Paras, 1975)

Revocability of Donations Propter Nuptias

GR: A donation propter nuptias may be revoked by the donor on the grounds specified in Art. 86 of the FC. In the cases specified in Arts. 43 and 44 of the FC, revocation occurs by operation of law.

XPNs:

• If the marriage is not celebrated, stipulations in the marriage settlements made in consideration of it, including donations between the prospective spouses, are void under Art. 81 of the FC. If the marriage is judicially declared void ab initio, the donor may revoke a donation by reason of marriage under Art. 86(1) of the FC, except donations made in the marriage settlements, which are governed by Art. 81 of the FC;
• If the subsequent marriage is judicially declared void by reason of Art. 40 of the FC, the donation remains valid; XPN to the XPN: If the donee spouse contracted the marriage in bad faith, all donations are revoked by operation by law. When both parties to a subsequent marriage contracted in bad faith under Art. 44 of the FC, all donations propter nuptias are revoked by operation by law

Effect on the ante-nuptial agreement in case the marriage is not celebrated (Art. 81, FC)

GR: Everything stipulated in the settlements or contracts in consideration of the marriage shall be rendered void.

XPN: Those stipulations not dependent upon, or are not made in consideration of, the marriage subsist.

Those formalities of the donation propter nuptias follows the same formalities as set forth in the law on donations.

NOTE: Donations of future property are governed by provisions on testamentary succession and formalities of wills.

Rule Regarding Donations Propter Nuptias made between spouses

GR: If the future spouses agree on a regime other than absolute community of property, they cannot donate to each other in their marriage settlements more than one-fifth of their present property; any excess is void.

XPN: If they are governed by ACP, then each spouse can donate to each other in their marriage settlements present property without limit, provided there is sufficient property left for their support and the legitimes are not impaired.

Donations that may be revoked by the donor

A donation by reason of marriage may be revoked by the donor in the following cases:

• GR: Marriage is not celebrated or is judicially declared void ab initio. Effect: Stipulations in the marriage settlements that are not dependent upon, or made in consideration of, the marriage remain effective if the marriage is not celebrated. They are not thereby subject to revocation under Article 86(1); XPNs:
• Donations made in the marriage settlements in consideration of a future marriage because such donations are rendered void when marriage did not take place and, thus, there is nothing to revoke;
• If the marriage is judicially declared void by reason of non-compliance with Art. 40 of the FC and the donee spouse contracted the marriage in bad faith. The donation is deemed revoked by operation of law; or
• If both parties acted in bad faith, all donations by reason of marriage and testamentary dispositions made by one in favor of the other are revoked by operation of law. (Art. 44, FC)
• Marriage takes place without the required consent of parents or guardians; NOTE: If the donor knew of the absence of consent of the parents before the marriage, they may not revoke the donation because the parent can still give their consent any time before the marriage ceremony takes palace. (Sta. Maria, 2017)
• Marriage is annulled and donee acted in bad faith;
• Upon legal separation, the donee being the guilty spouse; NOTE: Prescription is 5 years from the judicial declaration of legal separation. A decree is necessary for the donor to revoke the donation.
• If with a resolutory condition which was complied with; and
• Donee has committed an act of ingratitude as specified by the provisions of the NCC on donations in general. (Art. 86, FC)

Donation propter nuptias vs. Ordinary Donation

Grounds for filing an action for revocation of a Donation Propter Nuptias and their respective prescriptive periods

The prescriptive periods in other provisions of the NCC should apply, depending on the ground of revocation. Except for the action to revoke a donation to the guilty spouse in case of a legal separation, which the Art. 64(2) of the Code states must be brought within 5 years from the time of the decree of legal separation has become final, there is no other provision in the FC on the period of prescription of the action to revoke a donation proper nuptias. (Sempio-Diy, 2010)

XPNs:

• If the marriage is not celebrated, a donation propter nuptias embodied in the marriage settlements is void under Art. 81 of the FC, as recognized by Art. 86(1); or
• If the subsequent marriage is judicially declared void by reason of Art. 40 of the FC, the donation remains valid;

XPN to the XPN: If the donee spouse contracted the subsequent marriage in bad faith, donations by reason of marriage made to that spouse are revoked by operation of law under Arts. 43(3) and 50 of the FC.

When both parties to a subsequent marriage contracted in bad faith under Art. 44 of the FC, all donations propter nuptias are revoked by operation by law.

• Designation as Beneficiary in Insurance Policy

If the subsequent marriage is judicially declared void by reason of Art. 40 of the FC, the innocent spouse may revoke such designation if the beneficiary spouse acted in bad faith, even if such designation be stipulated as irrevocable. However, if the marriage was not judicially declared void and the designation in the insurance policy is irrevocable, the insured cannot change such designation.

• Right to Inherit
• Intestate Succession: The parties cannot inherit from each other by way of intestate succession since because they are no longer considered as spouses;
• Testate Succession:

GR: Any testamentary provision by one in favor of the other shall remain valid.

XPNs:

• If the subsequent marriage is rendered void by non-compliance with Art. 40 of the FC, the spouse who contracted the subsequent marriage in bad faith is disqualified to inherit from the innocent spouse.;
• If both parties to a subsequent marriage under Art. 41 of the FC acted in bad faith, the marriage is void under Art. 44 of the FC, and all testamentary dispositions made by one in favor of the other are revoked by operation of law.

NOTE: The parties are not disqualified to institute each other as voluntary heir in their respective wills to be executed after the judicial declaration of nullity.

• Parental Authority and Custody of Children

GR: Since the children are considered as illegitimate, the parental authority and the custody of the children will be exercised by their mother. The illegitimate father, even if he admits paternity, will only have visitation rights.

XPN: If the marriage is declared void by reason of psychological incapacity of either or both of the parties, the parental authority and the custody will be exercised by the parent designated by the court. If a child is below seven years old, the law presumes the mother is the best custodian unless the court decides otherwise for compelling reasons. (Art. 213, FC)