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.

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 upon 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 Francisco Prats, filed a third-party claim and subsequently instituted these three actions, asserting that the property was her exclusive paraphernal property and thus immune from execution for her husband’s debts. The trial court consolidated the cases and ruled that the property was conjugal (community) property, dismissing 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 acquired during 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. Character of the Property: The evidence conclusively established that the property was purchased by Francisco Pratts using money acquired during his marriage to Adela Romero. Regardless of its registration in the wife’s name, under Article 1408 of the Civil Code, property acquired during the marriage using funds from the conjugal partnership is deemed conjugal or community property.
2. Effect of Torrens Title: The registration of the property under the Torrens system (TCT No. 6964) does not alter its intrinsic character as conjugal property. Section 70 of the Land Registration Act ( Act No. 496 ) explicitly provides that registered land is subject to all burdens and incidents applicable to unregistered land, including liabilities for the payment of debts. The certificate of title does not relieve the property from such liabilities. The court can look beyond the face of the title to determine the true nature of the property for purposes of satisfying debts.
3. Levy on Conjugal Property for Husband’s Debts: Conjugal property is liable for debts and obligations contracted by the husband during the marriage (Article 1408, Civil Code). The defense that the husband’s separate property must first be exhausted applies only to debts incurred prior to the marriage, which was not the case here. The debts in question were incurred during the marriage.

Therefore, the property was correctly levied upon as conjugal property to satisfy the husband’s debts. The appealed judgment was affirmed.