Art. 148. Family Code

Art. 148. In cases of cohabitation not falling under the preceding Article, only the properties acquired by both of the parties through their actual joint contribution of money, property, or industry shall be owned by them in common in proportion to their respective contributions. In the absence of proof to the contrary, their contributions and corresponding shares are presumed to be equal. The same rule and presumption shall apply to joint deposits of money and evidence of credit.

If one of the parties is validly married to another, his or her share in the co-ownership shall accrue to the absolute community or conjugal partnership existing in such a valid marriage. If the party who acted in bad faith is not validly married to another, his or hers shall be forfeited in the manner provided in the last paragraph of the preceding Article.

The foregoing rules on forfeiture shall likewise apply even if both parties are in bad faith. (144a) If any of the requirements under Article 147 is absent, Article 148 shall apply. 

The parties are deemed co-owners of the property acquired during the cohabitation only upon proof of actual contribution to its acquisition. In the absence of proof, the co-ownership cannot rise.

There are relations contemplated under Article 148. These include (1.) that man and woman living together as husband and wife but are not capacitated to marry; (2.) adulterous relationship even if it occurred prior to the effectivity of the Family Code; (3.) bigamous or polygamous marriage; (4.) incestuous void marriages under Article 37; and (5.) void marriages by reason of public policy under Article 38.

Under the new FC, if the said property were bought through a joint contribution of money, property, or industry by both parties to the bigamous relationship, the share of the bigamous husband shall accrue to the absolute community property or conjugal partnership existing in his or her legitimate marriage.

In case both parties acted in bad faith, such as when a spouse and his bigamous wife who happens to be a relative by consanguinity within the first civil degree of the former, jointly contribute to their ownership while living together, with both contributing their salaries, the co-ownership shall be liquidated as follows: (a.) the share of the spouse who is obviously in bad faith shall accrue to the absolute community property or conjugal partnership of his existing valid marriage; while (b.) the share of the bigamous-cousin-wife who is also in bad faith shall be forfeited in favor of the common children.

In case of default or waiver of their common children or their descendants, each vacant share shall belong to the respective surviving descendants.

In the absence of which, share shall belong to the innocent party. Since there is no innocent party, the share of the bigamous-cousin-wife shall be given to her (the bigamous-cousin-wife).

In this regard and for purposes of the share of the bigamous-cousin-wife only in considering further that both spouses are in bad faith, they shall be considered as if they are both in good faith and therefore the share of the bigamous-cousin-wife shall be given to her.

An example of the applicability of the second paragraph of the Article is as follows:

When the marriage is bigamous.
Thus, if a husband is married to Wife no. 1, and contracts a bigamous marriage with Wife no. 2, who will own the following?
a. Php 10 million earned by the husband alone.
b. Php 30 million earned by the second wife alone, both having earned during the second marriage.

The answer is that the Php 10 million will all go to the conjugal or community property of the first wife and the husband the Php 30 million will all go to the second wife.

This rule is applicable to joint deposits of money and evidence of credit like securities and bonds.