1) Would marriage between creditor and debtor extinguish the debt obligation of

the latter with the former? Discuss in the light of ACP, CPG, and CSP

General provisions of the law- Debt, Loan, Obligations, Extinction

A debt is that which is owed by the debtor to a creditor an obligation to pay a
sum of money either on demand or at a certain future time. In this sense, under
the law on obligations the debtor has the obligation to give, while under the law
on property the creditors right to demand payment as well as the credit itself are
his or her personal properties.
The relationship between a creditor and a debtor is governed by law. The law
also provides for modes of extinguishment of a debt obligation. Likewise, their
relationship may be affected by their status, which brings us to marriage. What
will happen to the debt obligation when the creditor and debtor gets married?
The law does not specifically provide the effects of such change of status to the
debt obligation. However, I submit that the effects shall vary depending upon
various qualifying circumstances, and this necessarily involves the kind of
property regime that arises from such marriage.

ACP- Debt obligation extinguished in 2 ways.

There is Merger under Article 1275 of the New Civil Code: In Absolute
Community Property (ACP), the Family Code provides that all properties
separately belonging to each spouse shall form part of their property regime,
subject to some exceptions. The spouses shall likewise be considered as coowners of the ACP. Thus, since the personal property which is the right to
demand payment or the credit itself becomes a part of the ACP, the spouses
become co-owners of such. It would now be absurd for a co-owner to demand
from himself/herself payment of a debt which is co-owed to him/her by
himself/herself. Such absurdity has been considered by the law which is why it
provides the extinction of such obligation through merger.

Likewise, there is implied condonation or remission of the debt obligation.

Whether the spouses decide to have ACP in their marriage settlement or are
granted such by operation of law, the creditor condones the obligation of the
debtor, since such right to demand payment becomes a part of their shared
community property. Such right to demand is as if waived in favor of the debtor.
These would not prejudice 3rd persons who are creditors of either spouse, since
the marriage does not extinguish the debt owed to others.

CPG- The debt obligation may or may not be extinguished.

In Conjugal Partnership of Gains (CPG), the spouses decide on what to bring into
the marriage as part of their property regime and what to keep as separate
properties. Thus, the debt obligation may be extinguished by implied
condonation if the creditor spouse allows the credit or the right to demand
payment become part of the CPG, wherein such shall also be a property of the
debtor spouse. However, this may not be extinguished when the spouses
specifically provide in their marriage settlement or prenuptial agreement that the
debt shall continue to exist despite the marriage. There can be 2 scenarios in this
case. The CPG can either be a creditor of the debtor spouse, the debt becoming
due and demandable upon dissolution of the property regime, or the obligation
to pay suspended, until the property regime or the marriage is terminated. This is
why wealthy and affluent persons enter into painstaking prenuptial agreements
to prepare themselves for such contingencies because the debts amount to
millions, and the debt implication should not prejudice other creditors and heirs.
It is also noted that when the debt has interests, such would be considered as
fruits owed to the CPG, and not exclusively to the creditor spouse.

CSP- Demandable
The Family Code also allows the spouses to have a complete separation of
property. In this case, there is neither extinction nor suspension of the debt

obligation. It shall subsist along with the marriage, and would not really be
contrary to public policy, or the law that obligates spouses to render mutual
support. Further, since condonation is a gratuitous act, the fact that the spouses
chose CSP does not imply condonation; rather, it would be the opposite. Neither
would prescription take place to extinguish the debt obligation, since the law
specifically provides that extinctive prescription does not run between spouses,
even though there be a separation of property agreed upon in the marriage
settlement or by judicial decree. This is to address future implications wherein
the spouses would have separate creditors or some other compulsory heirs,
wherein their rights would be prejudiced by wrongly presuming that the debt
obligation between the spouses has become extinguished

2) Husband exclusively owns a parcel of land. During htier marriage, H and W

agreed to construct an improvement (bldg.) thereon out of the conj funds. Can
the H sell the land without the consent of the wife?
The general rule as provided by the law on property is that the accessory follows
the principal, in relation to the principles of Accession Continua or Accession
Industrial. However, the exception to such laws and principles is provided by
Article 120 of the Family Code. Thus, the answer would be qualified relative to
the comparative value between the exclusive property and the improvements
from the conjugal funds.
Consent would be required when the value of the improvements exceed that of
the parcel of land, by way of reverse accession wherein the principal would now
follow the accessory. Thus, if a building constructed upon the parcel of land is
worth P10,000,000.00, while the parcel of land only costs P2,000,000.00, the
principal (parcel of land) would now follow the accessory (building) and
consequently becomes a property of the Conjugal Partnership of Gains. As such,
the husband cannot sell that which belongs to the CPG without the consent of the
wife. However, if dispute would arise, the decision to be followed would be that
of the husband, without prejudice to the wifes right to seek judicial recourse.

On the other hand, consent would not be required when the value of the
improvements do not exceed the value of the parcel of land. Under such
scenario, the law on property on Accession Industrial would now apply wherein
the accessory would follow the principal. In this case, whatever is built on the
land shall likewise belong to the owner of the land. Thus, if the parcel of land is
worth P5,000,000.00 while the improvements only cost P1,000,000.00, the latter
would now form part of the former. This would now make the husband the
absolute owner of both the land and the improvements. Thus, he can sell said
properties without the consent of the wife.
Either scenario would not of course preclude proper reimbursement upon
dissolution of their property regime.

Professor Qualify- Accession and reverse accession