With several high-profile engagements in the news this year, the cost and significance of engagement rings have been widely discussed. Alongside the excitement these stories generate, one practical question often arises: what happens to the engagement ring if the relationship ends? Does the recipient have to return it or can they keep it?
WHO KEEPS THE ENGAGEMENT RING ON DIVORCE?
The general starting position is clear. Under section 3(2) of the Law Reform (Miscellaneous Provisions) Act 1970, “an engagement ring is presumed to be an absolute gift”. This means that, in most cases, the person who receives the ring is entitled to keep it, regardless of how or why the engagement or marriage comes to an end. The law does not concern itself with who called off the relationship or the reasons behind the separation; the ring is presumed to belong to the recipient.
However, this presumption can be challenged if it is shown that the ring was never intended to be an unconditional gift. This might be the case if there was a clear understanding and agreement that the ring would be returned if the engagement ended. Another common situation is where the ring is a family heirloom with strong sentimental or historical importance. In such circumstances, the court may find that it was not given outright and should be returned upon the breakdown of the marriage.
WHEN THE RING BECOMES PART OF THE FINANCIAL SETTLEMENT
Even where the ring is considered an absolute gift, its value can still become relevant during a divorce. If the ring is particularly valuable, it may be treated as a substantial asset in its own right. In cases where the available assets are limited and the parties’ needs cannot otherwise be met, the court may take the ring’s value into account when determining a fair financial settlement.
Another scenario in which ownership may be more straightforward is where the couple has entered into a pre-nuptial or post-nuptial agreement that specifically addresses what should happen to the engagement ring if the marriage breaks down. Agreements of this kind, when properly prepared, strongly guide the court’s decision.
GAINING CLARITY BEFORE MARRIAGE
Couples who wish to avoid uncertainty can make their intentions clear in advance. This can be done through a cohabitation agreement or a pre-nuptial agreement, either of which can set out how the engagement ring should be treated if the relationship comes to an end. Although these agreements are not automatically binding, they carry significant weight when drafted carefully and entered into freely with full understanding of their effect.
WHAT IF YOU ARE ALREADY MARRIED?
Even if you are already married and did not enter into a pre-nuptial agreement, it is still possible to create certainty. A post-nuptial agreement can record the parties’ intentions regarding the ring and other assets. As with cohabitation and pre-nuptial agreements, these documents can be highly persuasive if the court is later required to make decisions about ownership and division of property.
Engagement rings often carry emotional as well as financial significance and uncertainty about what should happen to them can lead to unnecessary conflict. Taking legal advice early can help ensure both parties understand their position and avoid disputes later.
Rayden Solicitors can advise you on how engagement rings and other items of property are treated on divorce, and we can assist in preparing the appropriate agreements to give both parties clarity and confidence. If you would like to discuss your circumstances, please contact us.
