CHAPTER 7 TRANSFER AND BUSINESS TAXATION

GROSS ESTATE OF MARRIED DECEDENT

MARRIAGE SETTLEMENTS
Th determination of the gross estate of the decedent who is married will depend upon the
property relations between the spouses.
The spouse may, in the marriage settlements, agree upon the regime of absolute
community, conjugal partnership of gains, complete separation of property, or any other
regime. In the absence of a marriage settlement, or when the regime agreed upon is void,
the property relations of the spouses shall be governed by the following regime or system:
1. Conjugal Partnership of Gains, if married before August 3, 1988.
2. Absolute Community of Property, if married on or after August 3, 1988 (Art. 75, Family
Code)
Note: the Family Code took effect on August 3, 1988.
Conjugal Partnership of Gains
The regime of Conjugal Partnership of Gains is also called Relative Community of Property.
A. CONJUGAL PROPERTIES
1. Those acquired by onerous title during the marriage at the expense of common fund,
whether the acquisition be for the partnership, or for only one of the spouses.
2. Those obtained from labor, industry, work, or profession of either both the spouses.
3. The fruits, natural, industrial, or civil, due or received during the marriage from the
common property, as well as the fruits from the exclusive property of each spouse;
4. The share of either spouse in the hidden treasure which the law awards to the finder or
owner of the property where the treasure is found;
5. Those acquired through occupation such as fishing and hunting;
6. Existing upon the dissolution of the partnership in the excess of the number of each find
brought to the marriage by either spouse and;
7. Those which are acquired by chance, such as winnings from gambling or betting.
However, losses therefrom shall be borne exclusively by the loser spouse.
B. EXCLUSIVE PROPERTIES
1. That which is brought to the marriage as his/her own
2. That which each acquires during the marriage by gratuitous title;
3. That which is acquired by right or redemption, by barter or by exchange with property
belonging to only one of the spouses and;
4. That which is purchase with the exclusive money of the wife or of the husband.
Absolute Community of Property
The Absolute Community Property between the spouses shall commence at the
precise moment that the marriage is celebrated.
A. COMMUNITY PROPERTIES
1. All properties owned by the spouses at the time of the marriage and;
2. All properties acquired thereafter.
B. EXCLUSIVE PROPERTIES
1. Property acquired during the marriage by gratuitous title by either spouse, and the fruits
as well as income thereof, if any, unless it is expressly provided by the donor, testator or
grantor that they should form part of the community property;
2. Property for personal and exclusive use of either spouse. However jewelry shall form part
of the community property and;

3. Property acquired before the marriage by either spouse who has legitimate descendants
by a former marriage, and the fruits as well as the income, if any, of such property.
Similarities Between the Regimes of the Conjugal Partnership and Absolute Community
Property
The property acquired
during the marriage (other
than inheritance or
donation)
Property acquired from
labor, industry, work, or
profession of the spouses
Fruits or income received
during the marriage coming
from the common property
Property inherited or
donated during the marriage

Conjugal Partnership

Absolute Community

Conjugal Property

Community Property

Conjugal Property

Community Property

Conjugal Property

Community Property

Exclusive Property

Exclusive Property

Difference between the System of Conjugal Partnership and Absolute Community

Property
Property acquired before
marriage or brought to the
marriage
Fruits or income due or
received during the marriage
from exclusive property

Conjugal Partnership

Absolute Community

Exclusive Property

Community Property

Conjugal Property

Exclusive Property

Formula for Gross Estate of Married Decedent

1. If the couple was under the conjugal partnership of gains
Conjugal properties
xxx
Add: exclusive Properties of Decedent
xxx
Gross Estate.
Xxx
2. If the couple was under the absolute community of property
Community properties
xxx
Add: Exclusive properties of Decedent
xxx
Gross Estate.
xxx