Photo from Unsplash | Omar Lopez

This article was originally published on June 1, 2022 and has been updated to reflect recent legal developments.

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

AT A GLANCE:

In Perez, Jr. v. Perez-Senerpida, G.R. No. 233365, March 24, 2021, the Supreme Court explained that the reason behind the prohibition is to protect third persons who may have contracted with a spouse,  believing in the existence of certain properties,  and who could easily be defrauded by removing such property by transfer to the other spouse.

Article 1490 of the Civil Code of the Philippines provides that the the husband and the wife cannot sell property to each other, except:

(1) When a separation of property was agreed upon in the marriage settlements; or

(2) When there has been a judicial separation of property under article 191.

In Perez, Jr. v. Perez-Senerpida, G.R. No. 233365, March 24, 2021, the Supreme Court explained that the reason behind the prohibition is to protect third persons who may have contracted with a spouse,  believing in the existence of certain properties,  and who could easily be defrauded by removing such property by transfer to the other spouse.

Moreover, in Gloria R. Cruz v. Court of Appeals, G.R. No. 120122, November 6, 1997, the Supreme Court held that although under Art. 1490 the husband and wife cannot sell property to one another as a rule which, for policy consideration and the dictates of morality require that the prohibition apply to common-law relationships.

This prohibition extends to legal redemption, compromises and renunciations as provided for under Article 1492 of the Civil Code of the Philippines.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

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