Question

Mr. Reyes and Ms. Santos got married without executing any marriage settlement. After two years of marriage, they encountered financial difficulties and decided to separate. Mr. Reyes believes that since they didn't have any marriage settlement, their property should be divided equally between them.

On the other hand, Ms. Santos argues that even without a marriage settlement, their property should be classified as Absolute Community of Property (ACP) under the Family Code. She claims that assets acquired during the marriage are automatically part of the ACP regime. Mr. Reyes, however, insists that certain properties should be excluded from the ACP regime.

Discuss the validity of Mr. Reyes' argument and analyze the legal principles governing the Absolute Community of Property (ACP) regime under the Family Code, particularly in relation to the absence of a marriage settlement. Provide a comprehensive explanation of the relevant provisions in the Family Code (Art. 84 and Arts. 88-104) and how they apply to the given scenario.