Family Home

What is a family home?

Is family home exempt from execution?

Is a judicial or extra-judicial constitution mandatory in order for a home to be considered as family home?

Sometimes, a judgment debtor is complacent that his family home would not be executed in favor of his creditors, relying upon the provisions of the Family Code that a family home is exempted from execution. However, not all people know that while a family home is generally exempt from execution, this rule admits of exceptions.

The leading case of Kelly Jr. vs Planters Products Inc. has laid down the rule on the execution of a family home:

No doubt, a family home is generally exempt from execution provided it was duly constituted as such.  There must be proof that the alleged family home was constituted jointly by the husband and wife or by an unmarried head of a family. It must be the house where they and their family actually reside and the lot on which it is situated. The family home must be part of the properties of the absolute community or the conjugal partnership, or of the exclusive properties of either spouse with the latter’s consent, or on the property of the unmarried head of the family. The actual value of the family home shall not exceed, at the time of its constitution, the amount of P300,000 in urban areas and P200,000 in rural areas. Under the Family Code, there is no need to constitute the family home judicially or extrajudicially. All family homes constructed after the effectivity of the Family Code (August 3, 1988) are constituted as such by operation of law. All existing family residences as of August 3, 1988 are considered family homes and are prospectively entitled to the benefits accorded to a family home under the Family Code. The exemption is effective from the time of the constitution of the family home as such and lasts as long as any of its beneficiaries actually resides therein. Moreover, the debts for which the family home is made answerable must have been incurred after August 3, 1988. Otherwise (that is, if it was incurred prior to August 3, 1988), the alleged family home must be shown to have been constituted either judicially or extrajudicially pursuant to the Civil Code.

A family home, if constructed before the effectivity of the Family Code, may only be constituted as a family home by filing a Petition in court. The person claiming exemption must not only allege but must also set-up and prove that the subject property is actually a family home.

For further reference, read the case of Juanita Trinidad Ramos vs Danilo Pangilinan (GR No. 185920).