Family Matters

We called it off! Who keeps the engagement ring?

Wedding season is in full swing. However, studies show that approximately 20% of weddings are called off for a whole host of reasons. This can stem from financial stress, uncertainty about the relationship, and family issues.  Additionally, those who tie the knot may not ultimately have a lasting marriage. So, what happens to the engagement ring in the event that a couple breaks up?

The seminal case in New Jersey, Aronow v. Silver 233 N.J. Super 344 (1989), established the precedent for handling engagement rings after a breakup.

The Court held that an engagement ring is classified as a conditional gift, which is given in contemplation of marriage. This means if the couple marries, the condition (marriage) is met, and the engagement ring is considered separate property of the recipient. Therefore, the engagement ring is not subject to equitable distribution in a divorce proceeding.

However, if the couple does not marry, our law is clear that because the condition of the gift (marriage) was not met, the engagement ring must be returned to the gifting partner. It does not matter who called the wedding off or if one party was “at fault.”

In light of our case law in New Jersey, couples who choose to execute a prenuptial agreement prior to their marriage may elect to include language regarding how an engagement ring will be distributed in the event of a divorce.

By way of example, they may make an exception to our case law and decide the engagement ring should be sold, and the net proceeds should be equally divided. Alternatively, they may include language allowing the gifting party to buy out the ring from the recipient based on an appraisal.

Whether you are getting married or calling it off, know your rights when it comes to the engagement ring. Contact a member of our family law team to learn how a prenup can protect you.

The information contained in this publication should not be construed as legal advice, is not a substitute for legal counsel, and should not be relied on as such. For legal advice or answers to specific questions, please contact one of our attorneys.