Article 16 of the Civil Code clearly states that real property as well as personal property is subject to the law of the country where it is situated.

DAVID A. NOVERAS, Petitioner, vs. LETICIA T. NOVERAS, Respondent. G.R. No. 188289, August 20, 2014.


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We agree with the appellate court that the Philippine courts did not acquire jurisdiction over the California properties of David and Leticia. Indeed, Article 16 of the Civil Code clearly states that real property as well as personal property is subject to the law of the country where it is situated. Thus, liquidation shall only be limited to the Philippine properties.

We affirm the modification made by the Court of Appeals with respect to the share of the spouses in the absolute community properties in the Philippines, as well as the payment of their children’s presumptive legitimes, which the appellate court explained in this wise:

Leticia and David shall likewise have an equal share in the proceeds of the Sampaloc property. While both claimed to have contributed to the redemption of the Noveras property, absent a clear showing where their contributions came from, the same is presumed to have come from the community property. Thus, Leticia is not entitled to reimbursement of half of the redemption money.

David's allegation that he used part of the proceeds from the sale of the Sampaloc property for the benefit of the absolute community cannot be given full credence. Only the amount of ₱120,000.00 incurred in going to and from the U.S.A. may be charged thereto. Election expenses in the amount of ₱300,000.00 when he ran as municipal councilor cannot be allowed in the absence of receipts or at least the Statement of Contributions and Expenditures required under Section 14 of Republic Act No. 7166 duly received by the Commission on Elections. Likewise, expenses incurred to settle the criminal case of his personal driver is not deductible as the same had not benefited the family. In sum, Leticia and David shall share equally in the proceeds of the sale net of the amount of ₱120,000.00 or in the respective amounts of ₱1,040,000.00.

x x x x.”