Under American Occupation
When the Philippine-American War broke out in 1898, Diwa again rejoined Trías, who appointed him his secretary. After Aguinaldo's capture in Palanan, Isabela on March 23, 1901, they both surrendered to the Americans in Indang, Cavite. Diwa was later named clerk of court of the Court of First Instance of Cavite. He also taught at the Ligaya College, which he co-founded in his hometown. He then retired to his farms in Tagaytay and Mendez. He died of nephritis on March 12, 1930. He was married twice His first wife was Delisa Dandan with whom he had three children. His second wife was Honorata Crescini with whom he had five children.
The Caridad Elementary School in Cavite City was renamed Ladislao Diwa Elementary School in his honor in November 1964.
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