Metropolitan Bank v. Nicholson Pascual A.K.A. Nelson Pascual

Summary

This case involves the validity of a real estate mortgage on conjugal property executed without spousal consent. Nicholson Pascual and Florencia Nevalga acquired property during their marriage, titled to Florencia. After their marriage was declared null in 1995, Florencia mortgaged the property to Metrobank in 1997 using a forged waiver, without Nicholson's consent. The Supreme Court held that mere declaration of marriage nullity does not automatically convert conjugal property to separate property until liquidation occurs. Under co-ownership principles, Florencia could only mortgage her undivided half-share. The Court declared the mortgage valid only as to Florencia's 50% interest and void as to Nicholson's 50% share, establishing important precedent on post-nullity property rights and banking due diligence requirements in mortgage transactions involving conjugal properties.