Legal basis and amended provisions
- Republic Act No. 10572 is an amendment to Executive Order No. 209 (Family Code of the Philippines).
- Section 1 of Republic Act No. 10572 amends Article 73 of the Family Code.
- Section 2 of Republic Act No. 10572 amends Article 111 of the Family Code.
- Republic Act No. 10572 is enacted to establish: (1) liability rules involving family property for certain obligations of a practicing spouse, and (2) the capability of either spouse to dispose of exclusive property without the other spouse’s consent.
Policy on spouses’ independent actions
- Article 73 provides that either spouse may exercise any legitimate profession, occupation, business or activity without the consent of the other.
- The other spouse may object only on valid, serious, and moral grounds.
- If there is disagreement, the court decides whether the objection is proper and whether the family or separate property will bear the resulting obligation.
- Article 73 protects creditors who acted in good faith from being prejudiced by these rules.
Court decision on objections and property liability
- Under Article 73, in case of disagreement, the court determines (1) whether the objection is proper, and (2) whether benefit has accrued to the family prior to the objection or thereafter.
- If the benefit accrued prior to the objection, the resulting obligation is enforced against the community property.
- If the benefit accrued thereafter, the resulting obligation is enforced against the separate property of the spouse who has not obtained consent.
- Article 73 states that the foregoing provisions do not prejudice the rights of creditors who acted in good faith.
Liability of exclusive property disposition power
- Article 111 provides that either spouse may mortgage, encumber, alienate or otherwise dispose of his or her exclusive property.
- Article 111 establishes a spouse’s authority over exclusive property without requiring the other spouse’s consent.
Separability, repeal, and continuing validity
- Section 3 provides a separability clause: if any provision or part of Republic Act No. 10572 is held invalid or unconstitutional, the remainder of the law remains valid and subsisting.
- Section 4 provides a repealing clause: any law, presidential decree or issuance, executive order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent with Republic Act No. 10572 is repealed, modified, or amended accordingly.