Munoz v. Ramirez G.R. No. 156125, August 25, 2010
As a general rule, all property acquired during the marriage, whether the acquisition appears to have been made, contracted or registered in the name of one or both spouses, is presumed to be conjugal unless the contrary is proved. In the present case, clear evidence that Erlinda inherited the residential lot from her father has sufficiently rebutted this presumption of conjugal ownership pursuant to Articles 92 and 109 of the Family Code. The residential lot, therefore, is Erlinda’s exclusive paraphernal property.
Article 120 of the Family Code, which supersedes Article 158 of the Civil Code, provides the solution in determining the ownership of the improvements that are made on the separate property of the spouses, at the expense of the partnership or through the acts or efforts of either or both spouses. When the value of the paraphernal property is considerably more than the conjugal improvement, said paraphernal property does not become conjugal property.