Ex-Spouses and Inheritance Rights in the Philippines

Ex-spouses in the Philippines generally have no right to inherit from a former spouse's estate once the marriage ends through recognized divorce, annulment, or legal separation. Philippine law treats divorced or annulled spouses as no longer qualifying as compulsory heirs under intestate or testate succession rules. This principle stems from the Civil Code and Family Code, which prioritize current marital status for spousal inheritance claims.

Legal Basis in Philippine Law

The Civil Code (Republic Act No. 386) governs succession in Articles 887-1014 for intestate cases and Articles 783-886 for testate succession. Compulsory heirs include the legitimate surviving spouse, alongside children and parents, but only if the spousal relationship exists at death—excluding ex-spouses post-dissolution. Article 887 explicitly lists the "surviving spouse" as a compulsory heir, a status lost upon divorce recognition or annulment, as confirmed in cases like Republic v. Manalo (2018).​

Legal separation under Family Code Articles 55-67 disqualifies the offending spouse from inheriting intestate from the innocent one per Article 63(4), while both retain some rights absent fault findings. Annulment declares the marriage void ab initio, fully stripping ex-spouses of inheritance eligibility similar to divorce effects.​

Impact of Divorce and Annulment

Foreign divorces are recognized under Family Code Article 26 for mixed marriages (Filipino-foreigner), requiring judicial confirmation via petition in Regional Trial Court. Once recognized, the ex-spouse loses "surviving spouse" status, barring intestate shares—like one-half of the estate without children—and legitime claims. For example, a Filipino ex-wife cannot claim from her deceased American ex-husband's Philippine estate post-U.S. divorce recognition.​

In testate succession, pre-divorce wills favoring an ex-spouse remain but cannot override legitime for other compulsory heirs; ex-spouses lack mandatory shares post-dissolution. Property regimes liquidate upon divorce (Family Code Article 129), dividing assets equally but excluding them from future estates, preventing inheritance overlap.​

Exceptions and Special Scenarios

De facto separation without court action preserves inheritance rights, as the marriage subsists under Civil Code Article 15. Muslim Filipinos under PD 1083 may have divorce options affecting inheritance via Shari'a rules. Dual citizens reacquiring Philippine citizenship post-foreign divorce (RA 9225) may still qualify for recognition if divorced as aliens.​

Children from dissolved marriages remain compulsory heirs unaffected by parental divorce. Disinheritance for causes like adultery (Civil Code Article 919) applies pre- or post-dissolution but requires valid grounds.

Practical Steps for Estate Planning

Heirs must probate estates via judicial (with will or disputes) or extrajudicial settlement (no will, all heirs agree). Ex-spouses can contest unrecognized foreign divorces, so prompt RTC petitions are essential. Consult family law experts for recognition, as delays preserve spousal claims; prenups clarify expectations in mixed marriages. Estate taxes apply without spousal exemptions post-dissolution (TRAIN Law).​

Source: Ziggurat Real Estate

U.S. Offshoring Bill and Its Impact on the Philippine IT-BPM Sector

A new proposal in the U.S. Congress, the Keep Call Centers in America Act, has once again stirred discussion about the future of offshoring and its possible impact on the Philippines’ Information Technology and Business Process Management (IT-BPM) industry.

If enacted, the bill would require call center agents to disclose their location at the start of each customer call and give U.S. consumers the option to speak with an agent based in the United States. It would also require U.S. companies to notify the government 120 days before moving operations offshore. Firms that fail to comply, particularly those receiving government contracts or tax incentives, could face penalties or even blacklisting.

For the Philippines, where nearly 1.9 million Filipinos are employed in the IT-BPM sector and where the industry accounts for about 45% of total office leasing activity, the proposal naturally draws attention.

Temporary Concern, Long-Term Strength

While the measure has raised some concern, similar proposals have been introduced in the past without advancing into law. The Philippine IT-BPM sector has consistently proven resilient in the face of shifting global policies, supported by strong fundamentals and adaptability.

Our data shows that IT-BPM firms remain the primary driver of office demand across the country. Regional hubs such as Cebu, Clark, and Davao continue to attract expansion from outsourcing companies drawn to the deep talent pool, improving infrastructure, and increasing availability of Grade A office spaces suited for outsourcing operations.

Even if some U.S. clients take a more cautious approach, the Philippines retains a clear competitive advantage. Based on U.S. labor data, a U.S.-based call center agent typically costs around $30–$40 per hour, including wages, benefits, and training. By comparison, a Philippine-based agent costs about $12–$15 per hour all-in, a significant difference that continues to make the country a cost-effective and reliable choice.

Why the Industry Remains Resilient

Beyond cost savings, global firms value the Philippines’ skilled, English-proficient workforce, business-friendly environment, and modern, BPO-ready office spaces that meet evolving operational and sustainability standards.

In Cebu, for example, office absorption remains healthy due to the city’s strong IT-BPM presence and access to a consistent talent pipeline from across the Visayas. This ongoing activity reflects how outsourcing firms continue to grow in the Philippines even amid global uncertainty.

Outlook: A Continued Bright Spot for the Economy

Although the Keep Call Centers in America Act may create short-term uncertainty, many industry observers believe it is unlikely to become law given the high labor costs and persistent worker shortages in the United States.

Looking ahead, the IT-BPM sector is expected to remain one of the strongest pillars of employment, office demand, and economic growth in the Philippines. With competitive costs, proven expertise, and continued investor confidence, the country is well-positioned to stay a top global destination for outsourcing in the years ahead.

Source: Leechiu

Christmas cheer still propels consumer spending

‘Tis the season to be jolly— and for many Filipinos, it is the prime period to spend, too.

New data from international payments provider Visa show that card transactions by Filipinos rise steadily every December, showing how the Christmas season continues to drive consumer activity in the Philippines.

However, this spending surge plays out differently depending on where Filipinos choose to spend their holidays.

For those staying in the country, spending peaks around Dec. 23, a period Visa describes as the height of the “holiday rush in malls and commercial districts” as shoppers scramble to make last-minute gift purchases ahead of family gatherings.

By contrast, Filipinos traveling overseas tend to open their wallets after Christmas. Their spending peaks on Dec. 29, reflecting “continued leisure and travel-related purchases during overseas vacations,” before tapering off toward the New Year.

Overall, Filipinos abroad register a higher spending peak than those who remain at home. Interestingly, spending drops sharply on Christmas Day itself for both groups, before climbing again in the days between Christmas and New Year.

Visa says the data points to the enduring value of Christmas, whether celebrated at home or abroad.

“Christmas brings people together and our data [underscore] the holidays’ enduring sociocultural and economic significance to the country,” says Jeffrey Navarro, country manager at Visa Philippines.

Online holiday shopping

As e-commerce continues to expand, a growing share of holiday spending is also moving online, according to data from Lazada.

Electronics sales during its 12.12 sale surged by as much as 1,100 percent compared with regular days, making the category the top seller. The spike reflects how “middle-class households are increasingly turning to e-commerce to improve their home environments,” Lazada says.

Branded goods emerged as winners during the sale, as products at LazMall recorded some of the strongest sales during the campaign. Samsung, Dyson, JBL Nike, POCO, Colgate, UFC, BLK Cosmetics and DDPA were among the top-performing brands.

This trend, Lazada says, suggests that Filipino shoppers are becoming more deliberate, increasingly gravitating toward globally trusted brands even in the digital marketplace that’s crowded with low-cost, third-party alternatives.

Foreigners join spending rush

Foreign visitors in the Philippines also contribute to the holiday spending boom, according to Visa data.

Inbound card payments made by foreign tourists also surge during the Yuletide season, with visitors from the United States leading the bunch, followed by those from Taiwan, Japan, South Korea and Singapore.

Much of this spending is concentrated in the buzzing city of Makati, followed by Parañaque, Cebu, Angeles and Davao.

Spending preferences also vary by nationality. Visitors from the United States, South Korea. Singapore, Australia and Hong Kong allocate most of their spending on lodging, while Taiwanese and Japanese tourists spend more on entertainment.

Indian travelers, meanwhile, spend the largest amount on education and government-related payments. Visitors from Canada and the United States prioritize spending on groceries and food during the holidays.

Source: Inquirer