In the context of Philippine civil law, live-in partnerships refer to arrangements where individuals cohabit as husband and wife without a formal marriage. Live-in partners are also called common law spouses. Such arrangement is common nowadays since couples want to veer away from the obligations of marriage. More so in the Philippines where there is no divorce.
Nevertheless, despite the absence of marriage, the law still provides for the respective obligations and liabilities of live-in partners. The realm of property relations is one of them.
Under Article 87 of the Family Code of the Philippines, live-in partners are expressly prohibited from donating property to each other, to wit:
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.”
As early as 1971, even before the advent of the Family Code, the Supreme Court in Matabuena vs. Cervantes ( G.R. No. L-28771, 31 March 1971) already held that the prohibition against donation among spouses also apply to common law relationships:
“A question of first impression is before this Court in this litigation. We are called upon to decide whether the ban on a donation between the spouses during a marriage applies to a common-law relationship. x x x The conclusion reached therein is that a donation between common-law spouses falls within the prohibition and is “null and void as contrary to public policy.”
Art. 87 of the Family Code prohibiting donations between persons cohabiting as spouses was further discussed in Perez vs. Senerpida (G.R. No. 233365, 24 March 2021), to wit:
“Given the above express prohibition of a party to the cohabitation to encumber or alienate by acts inter vivos even his or her share in the property acquired during the cohabitation and owned in common, without the consent of the other party until after the termination thereof under Article 147, then the donation of any property acquired during the cohabitation by one party without the consent of the other can only be but void. The rules on ordinary co-ownership cannot apply to vest validity on the undivided share of the disposing party. The donation is simply void. x x x
Matabuena equalized common-law relationships between a man and a woman, on the one hand, and validly married spouses on the other, in respect of the nullity of donations made between the parties. This case similarly pronounces that the prohibition against a spouse to donate any absolute community property or conjugal partnership property without the consent of the other spouse equally applies to common-law relations or cohabitations of a man and a woman without a valid marriage or under a void marriage.”
Both cases explained that this restriction aims to prevent potential abuse of property rights between unmarried cohabitants such as undue pressure and influence upon the other party.
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