"Art. 147. When a man and a woman who are capacitated to marry each other, live exclusively with each other as husband and wife without the benefit of marriage or under a void marriage, their wages and salaries shall be owned by them in equal shares and the property acquired by both of them through their work or industry shall be governed by the rules on co-ownership.
In the absence of proof to the contrary, properties acquired while they lived together shall be presumed to have been obtained by their joint efforts, work or industry, and shall be owned by them in equal shares. For purposes of this Article, a party who did not participate in the acquisition by the other party of any property shall be deemed to have contributed jointly in the acquisition thereof in the former's efforts consisted in the care and maintenance of the family and of the household.
Neither party can encumber or dispose by acts inter vivos of his or her share in the property acquired during cohabitation and owned in common, without the consent of the other, until after the termination of their cohabitation. [...]"
Under this property regime, property acquired by both spouses through their work and industry shall be governed by the rules on equal co-ownership. Any property acquired during the union is prima facie presumed to have been obtained through their joint efforts. A party who did not participate in the acquisition of the property shall be considered as having contributed thereto jointly if said party's "efforts consisted in the care and maintenance of the family household."8 Unlike the conjugal partnership of gains, the fruits of the couple's separate property are not included in the co-ownership.
For Article 147 of the Family Code to apply, the following elements must be present:
1. The man and the woman must be capacitated to marry each other;
2. They live exclusively with each other as husband and wife; and
3. Their union is without the benefit of marriage, or their marriage is void.
All these elements are present in this case and there is no question that Article 147 of the Family Code applies to the property relations between petitioner and respondent.
Under this property regime, property acquired by both spouses through their work and industry shall be governed by the rules on equal co-ownership. Any property acquired during the union is prima facie presumed to have been obtained through their joint efforts. A party who did not participate in the acquisition of the property shall be considered as having contributed to the same jointly if said party's efforts consisted in the care and maintenance of the family household. Efforts in the care and maintenance of the family and household are regarded as contributions to the acquisition of common property by one who has no salary or income or work or industry. (Citations omitted)
A reading of Article 147 of the Family Code would show that the provision did not make any distinction or make any qualification in terms of the manner the property must be acquired before the presumption of co-ownership shall apply. As such, the term "acquired" must be taken in its ordinary acceptation. For as long as the property had been purchased, whether on installment, financing or other mode of payment, during the period of cohabitation, the disputable presumption that they have been obtained by the parties' joint efforts, work or industry, and shall be owned by them in equal shares, shall arise.
TAKE NOTE (IMPORTANT):
It must be borne in mind that the presumption that the properties are co-owned and thus must be shared equally is not conclusive but merely disputable. The petitioner may rebut the presumption by presenting proof that the properties, although acquired during the period of their cohabitation, were not obtained through their joint efforts, work and industry. In such a case, the properties shall belong solely to the petitioner. If the respondent is able to present proof that she contributed through her salary, income, work or industry in the acquisition of the properties, the parties' share shall be in proportion to their contributions. In the event that the respondent had not been able to contribute through her salary, income, work or industry, but was able to show that she cared for and maintained the family and the household, her efforts shall be deemed the equivalent of the contributions made by the petitioner.
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