Prenuptial Agreements in Philippines

Marriage as a Legal and Social Institution

Article 1 of the Family Code of the Philippines states that “Marriage is a special contract of permanent union between a man and a woman entered into in accordance with law for the establishment of conjugal and family life. It is the foundation of the family and an inviolable social institution whose nature, consequences, and incidents are governed by law and not subject to stipulation, except that marriage settlements may fix the property relations during the marriage within the limits provided by this Code.”
This Family Code, also known as Executive Order No. 209, has been in effect since 1988.

Default Property Regime: Absolute Community of Property

By default, Philippine law applies a regime of absolute community of property once a couple marries. However, this default regime can be overridden by a valid prenuptial agreement.

Article 91 of the Code specifies that, “Unless otherwise provided in this Chapter or in the marriage settlements, the community property shall consist of all the property owned by the spouses at the time of the celebration of the marriage or acquired thereafter.”

Certain properties are excluded from this community regime, but the responsibility lies with the party claiming the exclusion to prove it, as stated in Articles 92 and 93.

Optional Property Regimes in Prenuptial Agreements

A prenuptial agreement can include any terms the couple agrees upon to govern their financial affairs. However, the Family Code outlines specific property regimes that couples may choose:

• Conjugal Partnership of Gains
  In this arrangement, the spouses pool together the fruits, income, and proceeds from their respective separate properties and from properties acquired during the marriage. Upon dissolution of the marriage or partnership, the net gains are divided equally unless otherwise specified in the agreement.
  
  
• Separation of Property
  Under this regime, each spouse retains ownership, control, and enjoyment of their own property, whether acquired before or during the marriage. This separation may be total or partial and may apply to current or future property.
  
  

Requirements for a Valid Prenuptial Agreement

Prenuptial agreements must be:

• Entered into voluntarily
  
  
• Made in writing
  
  
• Notarized and recorded in the Registry of Property and the local civil registry to be enforceable against third parties
  
  

A prenup can be invalidated if it was entered into under fraud, coercion, mistake, undue influence, bad faith, or lack of consent.

Choice of Law and Property Location

Parties may include a choice of law clause in their agreement to specify which legal system will govern their property relations. If no such clause exists, and one spouse is a Filipino citizen, the laws of the Philippines will apply by default.

However, Philippine law does not govern property located outside the country. According to Article 16 of the Civil Code of the Philippines, “Real property as well as personal property is subject to the law of the country where it is situated.”