Question

Mr. and Mrs. Santos got married without executing any marriage settlement. They acquired several properties during the course of their marriage, including a residential house and lot. The couple decided to sell the residential property and use the proceeds to start a business.

However, after a few years, the business failed, and the couple incurred significant debts. Mr. Santos, in an attempt to settle their debts, sold one of the vacant lots that they owned prior to their marriage. Mrs. Santos, upon learning about the sale, claimed that the property should not have been sold without her consent.

1. Was it necessary for Mr. Santos to obtain the consent of Mrs. Santos before selling the vacant lot? Discuss the relevant provisions of the Family Code.
2. Assuming that the residential house and lot was also sold, what would be the legal consequences with regard to the proceeds of the sale? Explain the application of the Absolute Community of Property regime under the Family Code.
3. In case Mr. Santos incurred personal debts, would the community property be answerable for such obligations? Discuss the extent of the liability of the Absolute Community of Property for the personal debts of each spouse.