The Absolute Community of Property is the default property regime in the Philippines whereby all properties acquired by spouses during their marriage are considered jointly owned. It includes all properties owned at the time of marriage or acquired thereafter, unless expressly excluded. Certain properties like those acquired through inheritance or gifts are excluded from the community. The community property is liable for debts incurred for family benefit. It is terminated upon death, legal separation, or annulment of the marriage. Upon termination, the net assets are divided equally between spouses after paying debts and delivering excluded properties.

1. WHAT IS ABSOLUTE COMMUNITY OF PROPERTY IN THE
FAMILY CODE
The system of Absolute Community of property is a
system of property relation that treats properties
acquired by the spouses during their marriage as jointly-owned.
It consists of all the properties owned by the
spouses at the time of the celebration of the marriage
or acquired thereafter unless the property involved is
expressly excluded by an existing marriage settlement
or by the provisions of the Family Code
The System of Absolute Community of property is
considered as the default property regime of the
spouses. In the absence of a marriage settlement or if
one is considered void, the law itself prescribes such as
the operative property sxystem within the marriage.
Under the Family Code, the system of Absolute
Community of property commences at the precise
moment the marriage is celebrated and any stipulation
allowing for the commencement of such system at a
later time shall be considered as void. The rules
governing co-ownership shall apply in all matters not
provided for in the Family Code.
In order to protect third persons such as creditors, the
law prohibits a spouse from making a waiver of interest
over his or her share in the community property except
in the case of judicial separation of property. In the
event that a judicial separation of property occurs or
when the marriage is dissolved or annulled, any waiver
must appear in a public instrument and shall be
registered in the local civil registry where the marriage
contract is recorded as well in the proper registries of
property.
The Absolute Community of property encompasses all
the properties each spouse owns at the time of the
marriage and thereafter. Certain properties however
are excluded as determined by Family Code
. These properties are as follows:
Property acquired during the marriage by gratuitous
title by spouse, and the fruits as well as the income
thereof, if any, unless it is expressly provided by the
donor, testator or grantor that they shall form part of
the community property;
Property for personal and exclusive use of either
spouse. However, jewelry shall form part of the
community property;
Property acquired before the marriage by either spouse
who has legitimate descendants by a former marriage,
and the fruits as well as the income, if any, of such
property.
Notice should be taken that the law presumes a
property acquired during marriage as part of the
community unless it can be proved that such property is
one of those excluded.
As a rule, the absolute community of property shall
answer for the following charges and debts:
The support of the spouses, their common children, and
legitimate children of either spouse; however, the
support of illegitimate children shall be governed by the
provisions of this Code on Support;
All debts and obligations contracted during the
marriage by the designated administrator-spouse for
the benefit of the community, or by both spouses, or by
one spouse with the consent of the other;
Debts and obligations contracted by either spouse
without the consent of the other to the extent that the
family may have been benefited;
All taxes, liens, charges and expenses, including major
or minor repairs, upon the community property;
All taxes and expenses for mere preservation made
during marriage upon the separate property of either
spouse used by the family;
Expenses to enable either spouse to commence or
complete a professional or vocational course, or other
activity for self-improvement;
Ante-nuptial debts of either spouse insofar as they have
redounded to the benefit of the family;
The value of what is donated or promised by both
spouses in favor of their common legitimate children for
the exclusive purpose of commencing or completing a
professional or vocational course or other activity for
self-improvement;

2. Ante-nuptial debts of either spouse other than those
falling under paragraph (7) of this Article, the support of
illegitimate children of either spouse, and liabilities
incurred by either spouse by reason of a crime or a
quasi-delict, in case of absence or insufficiency of the
exclusive property of the debtor-spouse, the payment
of which shall be considered as advances to be
deducted from the share of the debtor-spouse upon
liquidation of the community; and
Expenses of litigation between the spouses unless the
suit is found to be groundless.
In the event that the community property is not
sufficient to cover all such claims, the spouses shall be
solidarily liable for the unpaid balance with their
separate properties except for those debts falling under
paragraph (9).
Both spouses shall possess joint administration and
enjoyment of the community property. In case of
disagreement, the husband’s decision shall prevail
subject to proper recourse by the wife to the courts for
proper remedy. This action on the part of the latter
must be commenced within 5 years from the date of
the contract implementing such. One of the spouses
may assume sole administration and exercise powers of
administration if the other spouse is incapacitated or is
unable to participate in the administration of the
property. Such power does not confer to the
administrator the authority to dispose or encumber the
properties administered unless allowed to by the court
or consented to by the other spouse. In the absence of
such consent, the disposition or encumbrance shall be
considered void but the transaction shall be construed
as a continuing offer on the part of the consenting
spouse and the third party that may still be perfected
upon the acceptance by the other spouse or upon
authorization of the court. Neither spouse may donate
any community property without the consent of the
other except in the case of moderate donations for
charity or on occasion of family rejoicing or family
distress.
As stated in the Family Code, the absolute community is
terminated upon the happening of the following:
Upon the death of either spouse;
When there is a decree of legal separation;
When the marriage is annulled or declared void; or
In case of judicial separation of property during the
marriage
In case the community property is dissolved, the
following procedure shall take place. First, an inventory
shall be made listing separately the properties that are
included and excluded from the community property.
Second, the debts and obligations of the absolute
community shall be paid out of its assets. Third,
whatever remains of the exclusive properties of the
spouses shall thereafter be delivered to each of them.
Fourth, the net assets shall be divided equally between
husband and wife unless a different proportion or
division was agreed upon in the marriage settlements or
if there has been a voluntary waiver of such share as
provided under the law. Fifth, the presumptive
legitimes of the common children shall be delivered.
Sixth, the conjugal dwelling and the lot on which it is
situated shall be adjudicated to the spouse with whom
the majority of the common children choose to remain
unless otherwise agreed upon by the parties. Children
below the age of seven years are deemed to have
chosen the mother, unless the court has otherwise
decided.
If no judicial settlement proceeding is instituted, the
surviving spouse shall liquidate the community property
either judicially or extra-judicially within six months
from the death of the deceased spouse. If no liquidation
is made upon the lapse of the six months period, any
disposition or encumbrance involving the community
property of the previous marriage shall be void. Should
the surviving spouse contract a subsequent marriage
without compliance with the previous requirements, a
mandatory regime of complete separation of property
shall be imposed upon the property relations of the
subsequent marriage.