Spousal Consent is Crucial for Valid Conjugal Property Transactions

Spouses Romeo Anastacio, Sr. and Norma T. Anastacio v. Heirs of the Late Spouses Juan F. Coloma and Juliana Parazo, G.R. No. 224572, August 27, 2020

Imagine purchasing a piece of land, only to discover years later that the transaction was void because the seller’s spouse never consented to the sale. This nightmare scenario became a reality for the Anastacio spouses, highlighting the critical importance of understanding conjugal property rights in the Philippines. In a landmark decision, the Supreme Court clarified the legal requirements for selling conjugal property, emphasizing that without the consent of both spouses, such transactions are invalid.

This case revolves around a dispute over a 19,247-square-meter parcel of land in San Jose, Tarlac. The Anastacios claimed ownership based on a Deed of Absolute Sale from Juan F. Coloma, but the heirs of Juan and his wife, Juliana Parazo, contested the sale, arguing it was void due to lack of spousal consent and alleged forgery of Juan’s signature. The central legal question was whether the property was conjugal and thus required Juliana’s consent for a valid sale.

Legal Context: Conjugal Property and Spousal Consent

In the Philippines, the default property regime for marriages before the Family Code took effect in 1988 was the Conjugal Partnership of Gains (CPG). Under CPG, all property acquired during marriage is presumed to be conjugal unless proven otherwise. This principle is enshrined in Article 116 of the Family Code, which states: “All property acquired during the marriage, whether the acquisition appears to have been made, contracted or registered in the name of one or both spouses, is presumed to be conjugal unless the contrary is proved.”

This means that if a property was acquired during marriage, it’s considered conjugal even if it’s registered solely in one spouse’s name. To sell or encumber conjugal property, both spouses must consent, as outlined in Article 124 of the Family Code: “These powers [of administration] do not include disposition or encumbrance without authority of the court or the written consent of the other spouse. In the absence of such authority or consent, the disposition or encumbrance shall be void.”

Consider a couple who bought a house during their marriage. Even if the title is only in the husband’s name, the wife’s consent is required to sell the property. This protects both spouses’ rights to their conjugal assets.

Case Breakdown: The Anastacio-Coloma Dispute

The story begins with Juan F. Coloma, who allegedly sold a parcel of land to the Anastacio spouses in 2004. The Anastacios claimed they had paid Juan and taken possession of the property. However, after Juan’s death in 2006, his heirs challenged the sale, asserting that the property was conjugal and that Juliana’s consent was never obtained.

The dispute escalated through the Philippine judicial system:

• The Municipal Circuit Trial Court (MCTC) initially dismissed the heirs’ complaint for lack of jurisdiction.
• The Regional Trial Court (RTC) later ruled in favor of the Anastacios, finding no evidence of forgery and deeming the property Juan’s exclusive property.
• The Court of Appeals (CA) reversed the RTC’s decision, declaring the sale void due to lack of Juliana’s consent and finding Juan’s signature on the deed to be a forgery.
• The Supreme Court upheld the CA’s ruling, emphasizing the conjugal nature of the property and the necessity of spousal consent.

The Supreme Court’s reasoning was clear: “Given the very stipulations made during the Pre-Trial and TCT No. 56899, respondents had laid the predicate for the presumption under Article 116 to be invoked.” The Court further stated, “Since petitioners have not presented strong, clear, convincing evidence that the subject property was exclusive property of Juan, its alienation to them required the consent of Juliana to be valid.”

Despite the Anastacios’ argument that Juan and Juliana were separated, the Court ruled that separation does not exempt a spouse from obtaining the other’s consent for property transactions.

Practical Implications: Navigating Conjugal Property Sales

This ruling underscores the importance of verifying the conjugal status of property before any transaction. For potential buyers, it’s crucial to ensure that both spouses have consented to the sale. For married property owners, obtaining spousal consent is not just a formality but a legal necessity to avoid future disputes.

Businesses dealing in real estate must implement due diligence processes to confirm spousal consent, especially for properties acquired during marriage. Individuals should also be aware that even notarized documents may be voided if proper consent is lacking.

Key Lessons:

• Always verify the conjugal status of property before purchasing.
• Obtain written consent from both spouses for any sale or encumbrance of conjugal property.
• Understand that separation from bed and board does not negate the need for spousal consent in property transactions.

Frequently Asked Questions

What is conjugal property?
Conjugal property refers to assets acquired by either or both spouses during marriage under the Conjugal Partnership of Gains regime, which is presumed to be owned jointly by both spouses.

Do I need my spouse’s consent to sell our conjugal property?
Yes, under Philippine law, both spouses must consent to the sale or encumbrance of conjugal property. Without this consent, the transaction is void.

What if my spouse and I are separated?
Separation from bed and board does not exempt you from needing your spouse’s consent to sell conjugal property. You may need to seek court authorization if your spouse refuses to consent.

Can I still buy a property if only one spouse is selling?
It’s risky to proceed with a purchase if only one spouse is selling. Ensure you have written consent from both spouses or a court order authorizing the sale.

What should I do if I discover a property I bought was sold without proper consent?
You may need to seek legal advice to determine your rights. The sale could be voided, and you might need to negotiate with the rightful owners or pursue legal action.

ASG Law specializes in property law and family law. Contact us or email hello@asglawpartners.com to schedule a consultation.