G.R. No. 30020 , 30021, 30022 | March 23, 1929
ADELA ROMERO DE PRATS, assisted by her husband, Francisco Prats, plaintiff-appellant, vs. MENZI AND CO., INC., et al. / ANTONIO BRIMO, et al. / TALAMBIRAS BROTHERS, et al., defendants-appellees.

Ponente: OSTRAND, J.

FACTS

Three separate creditors (Menzi and Co., Inc., Antonio Brimo, and Talambiras Brothers) obtained money judgments against the partnership “Hanna, Bejar and Co., Pratts, and Co.” and its individual partners, including Francisco Prats. Writs of attachment and later execution were levied on properties, including one registered under Transfer Certificate of Title (TCT) No. 6964 in the name of “Adela Romero de Pratts casada con Francisco Prats.” Adela Romero, the wife of debtor Francisco Prats, filed a third-party claim and subsequently instituted these three consolidated actions, asserting that the property was her exclusive paraphernal property and thus immune from execution for her husband’s debts. The trial court found that the property was purchased by Francisco Prats using funds acquired during his marriage to Adela Romero. Consequently, it declared the property as conjugal/community property and dismissed Adela’s complaints.

ISSUE

Whether the property registered in the name of “Adela Romero de Pratts casada con Francisco Prats,” but proven to have been purchased by the husband with funds from the marriage, can be levied upon for the husband’s debts incurred during the marriage.

RULING

YES. The Supreme Court affirmed the trial court’s decision.
1. Nature of the Property: The evidence conclusively established that the property was acquired by Francisco Prats using money obtained during his marriage. Under Article 1408 of the Civil Code (then in force), such property is deemed conjugal or community property, regardless of in whose name it is registered.
2. Effect of Torrens Title: The fact that the TCT was issued in the wife’s name does not shield the property from the legal incidents attached to it by law. Section 70 of the Land Registration Act ( Act No. 496 ) explicitly provides that registered land is subject to the same burdens as unregistered land, including liability for the payment of debts. The Torrens system does not alter substantive rights, such as those arising from the conjugal partnership.
3. Levy on Conjugal Property for Husband’s Debts: Conjugal property is liable for debts contracted by the husband during the marriage. The appellant’s argument that the husband’s separate property must first be exhausted applies only to debts incurred before the marriage, which was not the case here.

DISPOSITIVE PORTION:
The appealed judgment is affirmed. Costs against the appellant.