Who keeps the ring?

Purchasing a ring for your significant other when wanting to make the next step in your relationship is often one that is mulled over with great thought. Naturally, there is a great emphasis in the purchase of the ring. However, what occurs in the event of a separation and importantly, who has the more reasonable claim to retaining the engagement ring?

The type of relationship

The answer to the above depends on what stage of the relationship it has broken down. Essentially this will depend if the relationship broke down prior to the couple getting married and they are not classified as a de facto couple or if the relationship broke down as a de facto couple or when married.

If the couple were not a de facto couple, it is open to the Court to adopt the equitable concept that the engagement ring is a ‘conditional gift’ and ought to be returned to the gifting party as the marriage did not subsequently take place. Albeit there are a range of circumstances that the Court considers when assessing any claim for a party to return the engagement gift.

If the relationship broke down as the couple were a de facto relationship or married, then the Family Law Act 1975 (Cth) jurisdiction is enlivened and the ring may form part of the Asset Pool available for division between the parties. If so, legal analysis will be made as to the value of the engagement ring, who seeks to keep it and contributions made by each party to the acquisition of the ring in determining the overall property and financial division between the couple.

Conclusion

Whilst there is no “one size fits all” answer to the question, to have absolute certainty in who gets to keep the ring, our Family Law team is of the view that parties should enter into Financial Agreements or as colloquially known ‘pre-nups’.

Our team has extensive experience in drafting Financial Agreements such as these to ensure couples have certainty in their asset division during what is often a tumultuous time. Please do not hesitate to contact our office to speak to our Family Law team to provide you with clear and accurate advice that may assist in the event of a separation breakdown to protect your financial position.