Title
Atienza vs. De Castro
Case
G.R. No. 169698
Decision Date
Nov 29, 2006
A man claimed co-ownership of property acquired during an extramarital relationship, but the court ruled it exclusively owned by his former partner due to insufficient proof of his financial contribution.
property
contribution
exclusive ownership

Case Summary (G.R. No. 169698)

Factual Background

The parties began an intimate relationship in 1983 while petitioner was married to another woman and lived together thereafter as man and wife; two children were born of the union and the relationship ended after the birth of the second child. Petitioner alleged that respondent acquired a parcel of land with improvements in Bel-Air Subdivision, Makati City, covered by Transfer Certificate of Title No. 147828, in 1987 using petitioner’s exclusive funds and in respondent’s name without his knowledge or consent. Respondent denied the allegation and maintained that she purchased the property for Two Million Six Hundred Thousand Pesos (P2,600,000.00) with her exclusive funds, consisting of savings and earnings from her business activities as an accountant and entrepreneur.

Trial Court Proceedings

Petitioner filed a complaint for judicial partition in the RTC of Makati City asserting co-ownership of the subject property under the rules on co-ownership applicable to persons living together as husband and wife. In a decision dated December 11, 2000, the trial court declared the property owned in common by Lupo Atienza and Yolanda U. De Castro share-and-share alike and ordered partition or sale with equal division of proceeds, with costs assessed against the defendant.

Court of Appeals Decision

On appeal, Yolanda U. De Castro argued that the written instruments forming the chain of acquisition — the Contract to Sell dated March 24, 1987, the Deed of Assignment of Redemption dated March 27, 1987, and the Deed of Transfer dated April 27, 1987 — established her sole ownership and that respondent’s documentary evidence was the best proof of ownership. The Court of Appeals, by decision of April 29, 2005, reversed and set aside the trial court decision and declared the property to be exclusively owned by Yolanda U. De Castro; the CA denied petitioner’s motion for reconsideration in its Resolution of September 16, 2005.

Issues Presented on Review

The principal issues before the Court were whether Article 148, Family Code or other provisions governing property relations of nonmarital unions applied to the parties’ situation, whether petitioner carried the burden of proving an actual contribution to the acquisition of the property, and whether the CA erred in declaring respondent the sole owner.

Petitioner’s Contentions

Petitioner contended that under Article 144, Civil Code, and Article 484, Civil Code, property acquired during the extramarital union of the parties was presumed co-owned and that he was not required to prove contribution to establish co-ownership. Petitioner also argued that he had shown that respondent lacked the financial capacity to acquire the property and that funds of his corporations were diverted to effect the purchase in respondent’s name.

Respondent’s Contentions

Respondent maintained that she bought the property with her exclusive funds and produced documentary evidence of the chain of title in her name. She also produced bank statements, promissory notes, and records of her business dealings to demonstrate that she had the financial capacity to pay the purchase price and that the property was her exclusive patrimony.

Applicable Law and Burden of Proof

The Court held that because petitioner was validly married to another woman, the parties’ property relations were governed by Article 148, Family Code, which provides that in such cohabitation only properties acquired by both parties through actual joint contribution shall be owned in common in proportion to their contributions and that actual contribution must be proven. The Court reiterated that the burden of proof lies on the party asserting an affirmative fact and that allegations are not evidence. The Court also affirmed that Article 148 applies even when cohabitation or acquisition occurred prior to the Family Code’s effectivity as it filled a gap left by Article 144, Civil Code, citing authorities such as Carino v. Carino, Agapay v. Palang, and Tumlos v. Fernandez as reflected in the record.

Supreme Court Ruling

The Court denied the petition for review and affirmed the Court of Appeals’ decision and resolution. The Court held that petitioner failed to overcome his burden of proving actual contribution to the acquisition of the disputed property and that the documentary trail of the purchase in respondent’s name supported respondent’s claim of sole ownership. The Court ordered costs against the petitioner.

Legal Reasoning

The Court reasoned that the trial court erred in relying on the relative apparent financial capacity of the parties without admissible proof of petitioner’s contribution to the purchase price. The Court observed that petitioner relied on voluminous corporate bank records and allegations that respondent had access to corporate funds, but these records did not establish that the fun

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