Quiao v Quiao

Brigido B. QUIAO,  petitioner , vs. Rita C. QUIAO, Kitchie C. Quiao, Lotis C. Quiao, Petchie C. Quiao, represented by their other Rita Quiao, respondents. !.R. "o. #$%&&%.

'u(y ), *+#*

OPIC- //ects //ects o/ annu(ent 0 on the property regie o/ the arriage PO""- Reyes, '. "AUR O1 ACIO"- Petition /or Revie2 on Certiorari to set aside RC Order and issue a Reso(ution de/ining net pro/its

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Brigido and Rita 2ere arried soetie in #4$$. he Civi( Code 5not 1ai(y Code6 governed their arriage, and because they did not stipu(ate a property regie, theirs 2as autoatica((y a Con7uga( Partnership o/ !ains. In *+++, Rita /i(ed a cop(aint /or (ega( separation against Brigido. October #+, *++& 0 the RC granted the separation. It a(so ru(ed thatRita gets custody o/ the three inor chi(dren8 o o he eight reaining properties be e9ua((y divided bet2een the spouses, sub7ect to the respective (egities o/ the chi(dren and the payent o/ unpaid con7uga( (iabi(ities8 Brigido:s share o/ the net profits earned  by  by the con7uga( partnership is /or/eited in /avor  o o/ their coon chi(dren8 and Brigido ust reiburse attorney:s /ees and (itigation e;penses. o "o otion /or reconsideration or appea( 2as /i(ed a/ter2ards. Rita < co. /i(ed a otion /or e;ecution on =ec. #*, *++&. It 2as granted on =ec. #%, and the >rit o/ ;ecution 2as issued on 1eb. #+, *++%. On 'u(y %, *++%, Brigido partia((y cop(ied by paying his share o/ the con7uga( share, the attorney:s /ees, and the (itigation e;penses. 'u(y $, *++% 0 Brigido /i(ed a ?otion /or C(ari/ication be/ore the RC, as@ing the to de/ine the ter net profits earned . .

RTC RULING: •

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 August #, *++% 0 the RC de/ined the ter as the reainder o/ the properties o/ the parties a/ter deducing the separate properties o/ each spouse and the debts. In this Order, the RC RC a(so said said that, that, becaus because e the the o//end o//ending ing spouse spouse 5Brig 5Brigido ido66 has no right right to the reain reainder der o/ the properties, it sha(( be /or/eited in /avor o/ the coon chi(dren pursuant to Arts. %5*6 and )5*6 o/  the 1ai(y Code. "oveber D, *++% 0 a/ter Brigido /i(ed a ?otion /or Reconsideration, the RC issued another  Order. Eere, the RC he(d that the  net profits earned  shou(d be coputed in accordance 2ith  Art. #+*5)6 o/ the 1ai(y Code. Code. 'anuary D, *++$ 0 this tie, Rita /i(ed a ?otion /or Reconsideration and this Order set aside the "ov. D Order, and reinstated the Aug. # Order.

ISSUES:

#. >O" the Octobe Octoberr #+, *++& =ecision =ecision o/ o/ the RC 2as 2as /ina( and and e;ecutory e;ecutory by the tie tie the 'u(y $, *++% ?otion 2as /i(ed. *. >hether Art. Art. #*4 or Art. #+* o/ the 1ai(y Code Code app(ies in in the coputation coputation o/ properties properties in this this case.

. >hat is the eaning o/ the ter net profits earned F October #+, *++& =ecision o/ the RC a//ired8 'anuary D, *++$ Order o/ the RC c(ari/ied. #. Ges, it 2as. Brigido argues that he 2as 9uestioning a void 7udgent, there/ore he 2as not (iited by the reg(eentary period to appea(. his is not the case, because a 7udgent is void on(y 2hen the court rendering it has no po2er to grant the re(ie/, or no 7urisdiction over the sub7ect atter or the parties. he RC in this case had the po2er and the 7urisdiction over the case, hence, the 7udgent 2as not void. Being va(id, the =ecision attained /ina(ity 2hen no appea( 2as /i(ed 2ithin the reg(eentary period.

HELD:

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*. Art. #*4 app(ies. >hi(e the coup(e 2as arried be/ore the e//ectivity o/ the 1ai(y Code, their separation too@ p(ace 2hen the said Code 2as operative8 there/ore, the 1ai(y Code is the app(icab(e (a2 in the (i9uidation o/ CP! assets and (iabi(ities. Brigido did not (ose his vested right in the properties because he 2as accorded his right to due process, evident in the court processes he 2ent through. A(so, Art. #$% o/ the 1ai(y Code speci/ica((y states that the gui(ty spouse ust /or/eit hisHher share in the con7uga( partnership pro/its.  A(so, because the RC:s =ecision stated that Art. #*4 o/ the 1ai(y Code app(ies, and because that =ecision is /ina( and e;ecutory, then Art. #*4 shou(d app(y. •

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. Art. #+*5)6 o/ the 1ai(y Code provides that net profits earned  sha(( be the increase in va(ue bet2een the ar@et va(ue o/ the counity property at the tie o/ the ce(ebration o/ the arriage and the ar@et va(ue at the tie o/ its disso(ution. 1or the purposes o/ disso(ution and (i9uidation, the de/inition o/ Art #+*5)6 sha(( govern, both /or ACP 5Art. #+*6 and CP! 5Art. #*46. >ith Art. #*4, Art. #+*5)6 on(y serves to =1I"  net  profit . •

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 ACPa. An inventory (isting separate(y the abso(ute counity properties and the e;c(usive properties o/ each spouse sha(( be ade. b. =ebts and ob(igations o/ the abso(ute counity 2i(( be paid out o/ the abso(ute counity:s assets. I/ insu//icient, the separate properties o/ each spouse 2i(( be so(idari(y (iab(e. c. >hatever:s (e/t o/ the separate properties 2i(( be returned to each spouse. d. he net reainder o/ the abso(ute counity is its net assets, 2hich 2i(( be divided e9ua((y bet2een the spouses. e. o copute net pro/its sub7ect to /or/eiture- net pro/itsJ  ar@et va(ue o/ the abso(ute counity 5net assets a/ter payent o/ debts6 at the tie o/ disso(utionJ 0 ar@et va(ue o/ the abso(ute counity at the tie o/ ce(ebration o/ arriageJ 5"ote- the presuption is that, over tie, the abso(ute counity:s va(ue increased /ro the tie they 2ere arried to the tie they decided to ca(( it 9uits.6 CP!a. An inventory (isting separate(y the con7uga( partnership properties and the e;c(usive properties o/ each spouse sha(( be ade. b. Aounts advanced by the con7uga( partnership in payent o/ persona( debts o/ either spouse sha(( be credited as assets o/ the con7uga( partnership. c. ach spouse 2i(( be reibursed the e;c(usive /unds used to buy property, or the va(ue o/ e;c(usive property, i/ the (a2 trans/erred o2nership o/ such properties to the con7uga( partnership.

d. =ebts and ob(igations o/ the con7uga( partnership 2i(( be paid out o/ the con7uga( partnership:s assets. I/ insu//icient, the separate properties o/ each spouse 2i(( be so(idari(y (iab(e. e. >hatever:s (e/t o/ the separate properties 2i(( be returned to each spouse. /. he (oss or deterioration o/ ovab(es be(onging to either spouse, i/ used /or the bene/it o/  the /ai(y, sha(( be paid to the corresponding spouse /ro the con7uga( /unds. g. he net reainder o/ the con7uga( partnership properties is its pro/its, to be divided e9ua((y bet2een the spouses, un(ess other2ise stipu(atedHprovided. h. Presuptive (egities o/ the coon chi(dren sha(( be de(ivered upon the partition 5Art. . i. he con7uga( d2e((ing and the (ot on 2hich it is (ocated sha(( go to the spouse 2ith 2ho a7ority o/ the coon chi(dren reain, un(ess other2ise stipu(ated. he court 2i(( decide, i/ there is no a7ority. •

In both situations, app(ied to this case, Brigido gets nothing.

>ER1OR, the =ecision dated October #+, *++& o/ the Regiona( ria( Court, Branch # o/ Butuan City is A11IR?=. Acting on the ?otion /or C(ari/ication dated 'u(y $, *++% in the Regiona( ria( Court, the Order dated 'anuary D, *++$ o/ the Regiona( ria( Court is hereby CLARI1I= in accordance 2ith the above discussions. DISPOSITIVE PORTION:

DOCTRINE:

Property sett(eent is a bitch. 5But serious(y6 >hether because o/ annu(ent or (ega( separation, Arts. #+* and #*4 o/ the 1ai(y Code app(y 2hen it coes to (i9uidation o/ Abso(ute Counity assets and Con7uga( Property assets, respective(y, depending on the property regie o/ the spouses. >ithout stipu(ation, arriages be/ore the 1ai(y Code are under CP!, and arriages a/ter are under ACP. CONCURRING OR DISSENTING OPINIONS:

"HA