Text of the provision

Art. 120. The ownership of improvements, whether for utility or adornment, made on the separate property of the spouses at the expense of the partnership or through the acts or efforts of either or both spouses shall pertain to the conjugal partnership, or to the original owner-spouse, subject to the following rules:

When the cost of the improvement made by the conjugal partnership and any resulting increase in value are more than the value of the property at the time of the improvement, the entire property of one of the spouses shall belong to the conjugal partnership, subject to reimbursement of the value of the property of the owner-spouse at the time of the improvement; otherwise, said property shall be retained in ownership by the owner-spouse, likewise subject to reimbursement of the cost of the improvement.

In either case, the ownership of the entire property shall be vested upon the reimbursement, which shall be made at the time of the liquidation of the conjugal partnership.

(158a)

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 is the Family Code's rule of "reverse accession." Ordinarily, whatever is built on land follows the land. Here, when the conjugal partnership pays to improve one spouse's exclusive property — a building, a renovation, anything for use or ornament — the outcome depends on a value comparison:

Crucially, ownership only changes hands once the reimbursement is actually made, and that reckoning is deferred to the liquidation of the conjugal partnership. Until then, nothing shifts.

Related provisions

Cases interpreting this article

Note. The text of the provision above is reproduced in full from the official enactment. The annotation, case summaries and commentary around it are the work of Vivas & Nobles Law Office and are general legal information, not legal advice. Whether this provision applies to a particular marriage depends on facts that only a lawyer reviewing your situation can assess.