As a general rule, every donation or grant of gratuitous advantage, direct or indirect, between the spouses during the marriage is void. This prohibition is meant to protect the spouses from undue influence over each other, to prevent one from unduly enriching themselves at the expense of the other, and to protect creditors and the family's compulsory heirs from being defrauded. There is an exception: moderate gifts which the spouses may give each other on the occasion of any family rejoicing (such as birthdays, anniversaries, or holidays) are valid. Importantly, the Supreme Court has held that this prohibition on donations between spouses applies as well to persons living together as husband and wife without a valid marriage (common-law or live-in partners), for otherwise the condition of those who incurred guilt would be better than those in a legal union. So a live-in partner generally cannot validly donate property to the other partner either, except moderate gifts. This is distinct from the rules on property relations between unmarried cohabitants, which govern properties they acquire through their joint efforts. Understanding this prohibition matters because a donation between spouses (or between live-in partners) is generally void and can be attacked, and it affects estate and property planning.
The General Prohibition
Every donation between spouses during the marriage is generally void — to prevent undue influence, unjust enrichment, and fraud on creditors and heirs.
The Exception
Moderate gifts on the occasion of a family rejoicing (birthdays, anniversaries, holidays) are valid.
Extends to Live-In Partners
The Supreme Court has held the prohibition also applies to common-law/live-in partners — otherwise those in guilt would be better off than those legally married. So a live-in partner generally cannot validly donate to the other either, except moderate gifts.
Practical Takeaways
- Donations between spouses are generally void;
- Moderate gifts for family occasions are an exception;
- The prohibition extends to live-in partners.
Frequently Asked Questions
Can spouses donate property to each other? As a general rule, no. Every donation or grant of gratuitous advantage between spouses during the marriage is void, subject to the exception for moderate gifts.
What is the exception to the prohibition? Moderate gifts which the spouses may give each other on the occasion of any family rejoicing, such as birthdays, anniversaries, or holidays, are valid.
Does the prohibition apply to live-in partners? Yes. The Supreme Court has held that the prohibition on donations between spouses also applies to persons living together as husband and wife without a valid marriage.
Why are donations between spouses prohibited? To protect the spouses from undue influence over each other, to prevent unjust enrichment of one at the expense of the other, and to protect creditors and compulsory heirs from fraud.
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.