When a marriage is annulled or declared void, the property relations must be liquidated. In a voidable marriage that is annulled, the absolute community or conjugal partnership is dissolved and liquidated; the share of the spouse who acted in bad faith in the net profits is forfeited in favor of the common children (or, in default, the innocent spouse). In void marriages, special rules apply: where the parties were capacitated to marry but the marriage is void (or under Article 147, a valid union without impediment), property acquired through their work and industry is generally owned in equal co-ownership, and a party in bad faith forfeits their share of the co-ownership net profits in favor of the common children. Where a party had an impediment (Article 148), only properties acquired by both through actual joint contribution are co-owned in proportion to contributions, and forfeiture rules apply against the party in bad faith. The presumptive legitime of common children must also be delivered. Correctly identifying the applicable rule is essential.
Liquidation Is Required
When a marriage is annulled or declared void, the property relations must be liquidated.
Annulled (Voidable) Marriage
The community/partnership is dissolved and liquidated; the bad-faith spouse forfeits their share of the net profits in favor of the common children (or the innocent spouse).
Void Marriage (Articles 147 & 148)
Article 147 (capacitated, no impediment): property from work/industry is equal co-ownership; bad-faith party forfeits in favor of common children. Article 148 (with impediment): only properties from actual joint contribution are co-owned in proportion, with forfeiture against the bad-faith party. The presumptive legitime of children must be delivered.
Practical Takeaways
- Ending a marriage requires liquidating the property;
- A bad-faith spouse forfeits their profit share to the children;
- For void marriages, Article 147 or 148 applies depending on impediment — identify the right rule.
Frequently Asked Questions
What happens to property when a marriage is annulled? The absolute community or conjugal partnership is dissolved and liquidated. The share of the spouse in bad faith in the net profits is forfeited in favor of the common children or the innocent spouse.
How is property divided in a void marriage? Under Article 147 (no impediment), property from the parties' work is owned in equal co-ownership. Under Article 148 (with impediment), only property from actual joint contribution is co-owned in proportion to contributions.
Does a spouse in bad faith lose anything? Yes. A party in bad faith generally forfeits their share of the net profits or co-ownership in favor of the common children.
What is the presumptive legitime? The advance share of the common children in the estate, which must be delivered upon the dissolution of the marriage through annulment or nullity.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.