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VIRGINIA OCAMPO v. DEOGRACIO OCAMPO

FACTS:

The petitioner, Virginia Sy Ocampo, filed a Petition for Declaration of Nullity of her marriage with Deogracio Ocampo on the ground of psychological incapacity. The trial court granted the petition and declared the marriage null and void. The court awarded custody of their children to Virginia and directed the dissolution and liquidation of their conjugal partnership of gains. However, no detailed inventory of the properties was submitted. The decision became final and no appeal was filed.

Subsequently, the trial court directed the parties to submit a project of partition of their conjugal properties. Since they failed to reach an agreement, a hearing was held, and evidence was presented. The trial court issued an order stating that the properties belonged to each party on a 50-50 sharing.

Virginia filed a Notice of Appeal, but Deogracio filed a motion to deny and/or dismiss the notice of appeal and for immediate execution. The trial court denied Deogracio's motion, and he filed a motion for reconsideration, which was also denied.

The Court of Appeals denied Virginia's appeal, and her motion for reconsideration was also denied. Virginia filed a Petition for Review on Certiorari, questioning whether Deogracio should be deprived of his share in the conjugal partnership by reason of bad faith and psychological perversity.

It was argued that even though the marriage was entered into before the effectivity of the Family Code, the provisions of the Family Code on conjugal partnerships would apply. The burden of proof is on the party claiming that the properties are not conjugal. The applicable law for the liquidation of the conjugal partnership assets and liabilities is Article 129 of the Family Code in relation to Article 147 of the Family Code.

In cases of void marriages like the one declared void under Article 36 of the Family Code, the property relations of the parties during cohabitation are governed by either Article 147 or Article 148 of the Family Code. Article 147 applies to parties who are legally capacitated to marry but whose marriage is void. It provides that their wages and salaries shall be owned equally, and the property acquired through their work or industry shall be governed by the rules on co-ownership. In the absence of proof to the contrary, properties acquired while living together shall be presumed to be obtained jointly.

ISSUES:

  1. Whether or not the properties acquired during the marriage of Virginia and Deogracio are considered conjugal.

  2. Whether or not the provisions of Article 147 of the Family Code apply to the property relations of parties in a void marriage.

RULING:

  1. The properties acquired during the marriage of Virginia and Deogracio are considered conjugal. Under the Family Code, properties acquired during the marriage are presumed to be conjugal. The burden of proof is on the party claiming that they are not conjugal. This presumption is only rebutted if it is proven that the properties were not acquired during the marriage.

  2. The provisions of Article 147 of the Family Code apply to the property relations of parties in a void marriage. Article 147 applies to parties who are capacitated to marry but whose marriage is nonetheless void. In such cases, their wages and salaries are owned in equal shares and the property acquired through their work or industry is governed by the rules of co-ownership. Properties acquired while they lived together are presumed to have been obtained through their joint efforts, work, or industry. Neither party can encumber or dispose of their share in the property without the consent of the other.

PRINCIPLES:

  • Under the Family Code, properties acquired during the marriage are presumed to be conjugal.

  • The burden of proof is on the party claiming that the properties acquired during the marriage are not conjugal.

  • In a void marriage, the property relations of the parties during the period of cohabitation are governed by either Article 147 or Article 148 of the Family Code.

  • Article 147 of the Family Code applies to parties who are capacitated to marry but whose marriage is nonetheless void. It provides for equal sharing of wages and salaries and the property acquired through their work or industry.

  • Properties acquired while parties lived together are presumed to have been obtained through their joint efforts, work, or industry.