CASE DIGEST: Siochi vs. Gozon (G.R. No. 169900; March 18, 2010)


CASE DIGEST: MARIO SIOCHI, Petitioner, vs. ALFREDO GOZON, et al., Respondents. G.R. No. 169900; March 18, 2010.

This case involves an action for legal separation. In said case, it was ruled by the CA that the one-half undivided share of the erring spouse in the property was already forfeited in favor of their daughter. This ruling by the CA was based on the ruling of the court a quo that the offending spouse in an action for legal separation is deprived of his share in the net profits of the conjugal properties.

DECISION: The CA ruling is not correct.
If there is a decree of legal separation, under Article 63 of the Family Code, the absolute community or the conjugal partnership shall be dissolved and liquidated but the offending spouse shall have no right to any share of the net profits earned by the absolute community or the conjugal partnership, which shall be forfeited in accordance with the provisions of Article 43(2). The offending spouse has no right to the fruits of the community or conjugal property.

Thus, among the effects of the decree of legal separation is that the conjugal partnership is dissolved and liquidated and the offending spouse would have no right to any share of the net profits earned by the conjugal partnership. It is only the share in the net profits which is forfeited in favor of their daughter. Article 102(4) of the Family Code provides that “[f]or purposes of computing the net profits subject to forfeiture in accordance with Article 43, No. (2) and 63, No. (2), the said profits shall be the increase in value between the market value of the community property at the time of the celebration of the marriage and the market value at the time of its dissolution.” Clearly, what is forfeited in favor of their daughter is not his share in the conjugal partnership property but merely in the net profits of the conjugal partnership property.
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