Question

Alex and Belle got married in the Philippines and decided to enter into a marriage settlement to establish their property regime. They opted for the separation of property regime as provided under Articles 143 to 146 of the Family Code. However, after several years of marriage, they encountered financial difficulties that led to the accumulation of debts.

One day, Alex received a notification from their creditor stating that they will be filing a lawsuit to collect the outstanding debts. Upon learning about this, Alex became worried and sought legal advice on how their separation of property regime would affect their liabilities.

In light of the given scenario, answer the following questions:

1. What is the concept of separation of property regime under Philippine law? Discuss its characteristics and effects on the spouses' assets and liabilities. Cite relevant provisions of the Family Code. (10 points)
2. In the situation of Alex and Belle, how would the separation of property regime affect their liability for the accumulated debts? Explain the legal consequences and obligations of each spouse in relation to their debts. (10 points)