Short answer. Yes. Article 1080 of the Civil Code allows a parent who wants to keep an agricultural, industrial, or manufacturing enterprise intact to assign it to one child and order that the other children's legitimes be paid in cash. The partition must not impair the legitime of any compulsory heir.
What the law says
A parent who, in the interest of his or her family, desires to keep any agricultural, industrial, or manufacturing enterprise intact, may avail himself of the right granted him in this article, by ordering that the legitime of the other children to whom the property is not assigned, be paid in cash.
Civil Code, Article 1080 — Partition by the Decedent Himself. Read the full provision →
The general right to partition by act inter vivos or will
Article 1080 opens with a broad right: a person may partition their estate during their lifetime by deed, or through their will, and that partition will be respected — as long as it does not prejudice the legitime of the compulsory heirs. This means a parent can decide now, while living, exactly which heir gets which property, rather than leaving the family to sort it out after death. The key constraint is that no compulsory heir's legitime may be impaired by how the assets are assigned.
The enterprise-intact exception
Article 1080 contains a specific provision for parents who own an enterprise — a farm, a factory, a business — that would lose value or viability if divided among multiple heirs. Such a parent may assign the entire enterprise to one child and, instead of giving the other children a fractional interest in the enterprise itself, direct that their legitimes be paid in cash. This protects the enterprise from being carved up while still honoring each heir's right to their statutory share. The enterprise continues as a going concern; the other children receive their fair share in money.
What this means for your father's farm
If your father's farm qualifies as an agricultural enterprise, he can assign the farm to one child — or to himself during his lifetime, with a disposition upon death — and provide that the remaining children receive their legitimes in cash rather than land. This arrangement must be documented in a partition deed or in a will that clearly identifies the enterprise, names who receives it, and specifies that the other heirs' legitimes are to be settled in money. The cash amounts must at least equal what each excluded heir is entitled to as their forced share under the law.
Limits and practical considerations
The cash payment of legitimes is not optional for your father to simply avoid; once he exercises this right and assigns the enterprise, the children not receiving the land must actually receive their cash equivalents — either during the parent's lifetime or from the estate after death. If the estate does not have sufficient cash at the time of settlement, arrangements must be made to liquidate other assets or raise the funds. Children who believe their computed legitime is understated may challenge the valuation of the enterprise. Accurate appraisal of the farm's value at the time of partition is therefore critical to making this arrangement enforceable without dispute.
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.
- Ricarido Golez, in his own behalf and his children Crispino Golez, et al., G.R. No. 191376, January 8, 2020 — read the decision on LawPhil →
- Araceli Mayuga vs. Antonio Atienza, G.R. No. 208197, January 10, 2018 — read the decision on LawPhil →
- Lordito Arrogante, et al. vs. Beethoven Deliarte etc, G.R. No. 152132, July 24, 2007 — read the decision on LawPhil →
- J.L.T. Agro, Inc. vs. Antonio Balansag, et al, G.R. No. 141882, March 11, 2005 — read the decision on LawPhil →