Understanding the Importance of Timely Liquidation of Conjugal Property in Successive Marriages

Heirs of the Late Apolinario Caburnay v. Heirs of Teodulo Sison, G.R. No. 230934, December 02, 2020

Imagine buying a piece of land, only to find out years later that the seller did not have full rights to sell it. This nightmare became a reality for the heirs of Apolinario Caburnay, who discovered that the land they thought was theirs was entangled in a web of family property disputes. The Supreme Court case of Heirs of the Late Apolinario Caburnay v. Heirs of Teodulo Sison highlights the complexities of property rights in successive marriages and the critical importance of liquidating conjugal property in a timely manner.

In this case, Teodulo Sison sold a piece of land to Apolinario Caburnay without the consent of his second wife, Perla, and his children from his first marriage. The central legal question was whether this sale was valid, considering the property was part of the conjugal partnership with his first wife, Perpetua, which had not been liquidated after her death.

Legal Context: Conjugal Property and Successive Marriages

Under Philippine law, when a spouse dies, the conjugal partnership of gains is dissolved, and the property must be liquidated within one year. This process involves dividing the property between the surviving spouse and the deceased’s heirs. If the property is not liquidated within this period, any subsequent disposition of the property is considered void.

The Family Code of the Philippines, specifically Article 130, states: “Upon the termination of the marriage by death, the conjugal partnership property shall be liquidated in the same proceeding for the settlement of the estate of the deceased… If upon the lapse of said period no liquidation is made, any disposition or encumbrance involving the conjugal partnership property of the terminated marriage shall be void.”

However, a surviving spouse who remarries without liquidating the previous conjugal property is subject to a mandatory regime of complete separation of property in the new marriage. This means that the property from the first marriage remains separate and can be disposed of by the surviving spouse without the new spouse’s consent.

To illustrate, consider a scenario where a widow inherits a house from her deceased husband. If she remarries without liquidating the house, it remains her separate property, which she can sell without her new husband’s consent. However, if she had not liquidated it within one year after her first husband’s death, any sale before remarriage would be void.

Case Breakdown: The Journey of the Caburnay-Sison Dispute

Teodulo Sison married Perpetua and acquired a piece of land during their marriage. After Perpetua’s death, Teodulo remarried Perla without liquidating the conjugal property. In 1994, Teodulo sold the land to Apolinario Caburnay, who paid 80% of the purchase price before Teodulo’s death in 2000.

Upon Teodulo’s death, his children from his first marriage, including Jesus Sison, executed an extrajudicial settlement of his estate, which included the land sold to Apolinario. This led to a dispute, as Apolinario’s heirs claimed ownership of the land based on the sale, while Teodulo’s heirs argued that the sale was void due to non-liquidation of the conjugal property.

The Regional Trial Court (RTC) and Court of Appeals (CA) ruled that the sale was void because Perla, Teodulo’s second wife, did not consent to the sale. However, the Supreme Court overturned these decisions, stating that the sale was valid to the extent of Teodulo’s share in the property.

The Supreme Court’s reasoning included the following key points:

• “The sale by Teodulo of the subject property to Apolinario was not necessarily or totally or entirely void, for his right as a co-owner to the extent of 9/16 thereof was effectively transferred.”
• “The disposition or encumbrance is valid only to the extent of the share or interest of the surviving spouse in the terminated marriage property, and cannot in no way bind the shares or interests therein of the other heirs of the deceased spouse.”
• “Upon the death of Apolinario, ownership to the extent of 9/16 of the subject property devolved pro-indiviso upon his heirs, petitioners herein, by virtue of succession.”

The Supreme Court recognized the sale as valid to the extent of Teodulo’s 9/16 share in the property, which he could dispose of without Perla’s consent due to the regime of complete separation of property in his second marriage.

Practical Implications: Navigating Property Rights in Successive Marriages

This ruling underscores the importance of liquidating conjugal property within one year of a spouse’s death. For individuals in successive marriages, it highlights the need to understand the property regime governing their new marriage and the implications of not liquidating previous conjugal property.

Businesses and property owners should take note of the following:

• Ensure timely liquidation of conjugal property to avoid disputes over subsequent dispositions.
• Understand the property regime in successive marriages to know the extent of property rights.
• Seek legal advice before entering into property transactions, especially if previous conjugal property has not been liquidated.

Key Lessons:

• Always liquidate conjugal property within one year of a spouse’s death to maintain the validity of any future dispositions.
• In successive marriages, the property from a previous marriage remains separate if not liquidated, allowing the surviving spouse to dispose of it without the new spouse’s consent.
• Property transactions involving co-owned property require the consent of all co-owners to be fully valid.

Frequently Asked Questions

What happens if conjugal property is not liquidated within one year after a spouse’s death?

Any disposition or encumbrance involving the conjugal property of the terminated marriage is considered void.

Can a surviving spouse sell property from a previous marriage after remarrying without liquidating it?

Yes, if the surviving spouse remarries without liquidating the previous conjugal property, the property remains separate, and the spouse can sell it without the new spouse’s consent.

What is the impact of the regime of complete separation of property in successive marriages?

It means that property from previous marriages remains separate and can be disposed of by the surviving spouse without the new spouse’s consent.

How does the Supreme Court determine the validity of a property sale involving co-owners?

The sale is valid to the extent of the disposing co-owner’s share, but it does not bind the shares of other co-owners without their consent.

What should individuals do to avoid property disputes in successive marriages?

Ensure timely liquidation of conjugal property and seek legal advice before entering into property transactions.

ASG Law specializes in family and property law. Contact us or email hello@asglawpartners.com to schedule a consultation.