Question

In the scenario below, please answer the question that follows:

Scenario:

John and Mary were married under the laws of the Philippines. Shortly after their marriage, they decided to enter into a separation of property regime. They executed a marriage settlement agreement which clearly stipulated that all income, profits, and fruits of their respective properties shall belong exclusively to each spouse, and that they shall manage, control, and dispose of their own property without the consent or interference of the other spouse. They also agreed to hold each other free and harmless from any debt or obligation that the other may contract during the marriage.

After five years of marriage, John unexpectedly passed away. During his lifetime, John had acquired several real properties and investment assets. Without a will, the question now arises as to how the properties and assets of John will be distributed.

Question:

Considering the scenario, how will the properties and assets of John be distributed in the absence of a will? Explain the applicable provisions of the Family Code, particularly on the separation of property regime.