Text of the provision
Art. 118. Property bought on installments paid partly from exclusive funds of either or both spouses and partly from conjugal funds belongs to the buyer or buyers if full ownership was vested before the marriage and to the conjugal partnership if such ownership was vested during the marriage.
In either case, any amount advanced by the partnership or by either or both spouses shall be reimbursed by the owner or owners upon liquidation of the partnership.
(n)
Family Code of the Philippines, Executive Order No. 209, approved July 6, 1987. The Code took effect on August 3, 1988 (Republic v. Orbecido III, G.R. No. 154380, October 5, 2005). Reproduced in full.
What this article means
This handles the common situation where a couple buys something on installments using a mix of separate and conjugal money. Ownership is decided by one question: when did full ownership vest?
- If ownership vested before the marriage, the property is the buyer's exclusive property.
- If ownership vested during the marriage, it belongs to the conjugal partnership.
Whichever way it falls, the estate that ends up owning the property must reimburse whatever the other side advanced — and that settling-up happens at liquidation of the partnership, not before.
Related provisions
- Article 117 — the categories of conjugal partnership property.
- Article 116 — the conjugal presumption.
Cases interpreting this article
- Authorities on Article 118 will be added here as each is verified against primary sources.