In the event of a couple's separation, whether it occurs during an engagement or after marriage, the question often arises as to whether the engagement ring should be returned or kept.
Engagements and marriages are primarily viewed as social events rather than strictly legal matters. Nevertheless, there are legal considerations, especially concerning the fate of the engagement ring, which can range in value from a few hundred to tens of thousands of dollars, making it a significant asset.
In informal resolutions, individuals typically adopt a fault-based approach to determine the ring's ownership. If the recipient of the ring initiated the separation, it is customary to return the ring. Conversely, if the person who gave the ring is responsible for the breakup, the recipient may choose to keep it. In cases of mutual consent, couples often amicably discuss and decide who retains the ring.
However, when disputes arise, and couples cannot agree on the fate of the ring, legal perspectives come into play.
The legal foundation for deciding whether to return or keep the engagement ring lies in the concept of engagement rings as conditional gifts. A conditional gift is one given with specific conditions attached, such as an engagement ring symbolising the giver's intention to marry, and accepting the ring indicates an agreement to future marriage.
Traditionally, broken engagements meant the return of the ring, especially if it held sentimental value as a family heirloom for the giver. However, societal norms and laws have evolved. Today, the determination of ring ownership is often approached on a case-by-case basis.
In the context of married or de facto couples separating, the Family Law Act comes into play. This categorises the engagement ring, like other assets, as property, subject to inclusion in a property settlement. Factors influencing the decision on ring ownership include its value (particularly its second-hand value), the duration of the relationship, each party's contributions to the relationship, and the future needs of each party post-separation.
Despite the sentimental value associated with engagement rings, it is common for couples to exclude the ring from property settlement negotiations. If a party insists on including it, the ring is treated as property and distributed as part of the settlement, either through mutual agreement or a court order. In such cases, there is no predetermined rule for ring ownership; instead, decisions are made based on the specific circumstances of each case.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
