Short answer. Yes. Under Family Code Article 126, a decree of legal separation is one of the four events that terminate the conjugal partnership of gains. The partnership dissolves upon the decree, even though the marriage itself remains valid. The spouses must then liquidate the conjugal property and divide whatever remains.
What the law says
The conjugal partnership terminates: (1) Upon the death of either spouse; (2) When there is a decree of legal separation; (3) When the marriage is annulled or declared void; or (4) In case of judicial separation of property during the marriage under Articles 134 to 138.
Family Code, Article 126 — When the Conjugal Partnership Terminates. Read the full provision →
Four events that end the conjugal partnership
The conjugal partnership of gains does not last forever. Family Code Article 126 lists the four ways it can end: the death of either spouse; a decree of legal separation; annulment or declaration of nullity of the marriage; or a judicial order separating the spouses' property while they are still married. Each event has the same legal effect on the partnership itself — it dissolves — even though the circumstances and what happens next differ significantly.
Legal separation ends the partnership but not the marriage
This is the distinction that most people find surprising. Legal separation is not divorce, and it does not free either spouse to remarry. The couple remains legally married, with all the personal obligations that entails. But the conjugal partnership dissolves the moment the decree is issued. From that point forward, whatever each spouse earns or acquires is exclusively theirs. The pooling of income and proceeds that defined conjugal partnership simply stops.
What happens to the conjugal property after the decree
Once the decree issues, the conjugal property must be inventoried, valued, and distributed. Conjugal debts are settled first from conjugal assets. Each spouse then recovers the exclusive property they brought in or received during the marriage. The net remainder — what Article 129 calls the profits — is divided equally, unless the marriage settlement provided otherwise or a spouse validly forfeited their share under the Family Code. The spouse found at fault in the legal separation proceedings may face additional consequences regarding the division, which a lawyer can assess based on the specific facts.
Judicial separation of property is a separate route
Some spouses want to separate their finances without going through legal separation proceedings. The fourth ground in Article 126 covers this: a court-ordered separation of property during the marriage. Article 134 makes clear that this cannot happen by private agreement alone — it requires a judicial order. Whether the separation is voluntary or for sufficient cause, it ends the conjugal partnership just as effectively as a legal separation decree, and the liquidation process follows the same basic steps.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Belinda Alexander vs. Spouses Jorge and Hilaria Escalona and Reygan Escalona, G.R. No. 256141, July 19, 2022 — read the decision on LawPhil →
- Sps. Julieta B. Carlos and Fernando P. Carlos vs. Juan Cruz Tolentino, G.R. No. 234533, June 27, 2018 — read the decision on LawPhil →