Engagement rings and wedding rings can be incredibly expensive, with the average cost exceeding $5,000. Some couples even spend $20,000 or more on an engagement ring. For high earners, expectations about the cost of an engagement ring often scale with income. A CEO earning millions of dollars annually might not think twice about spending $20,000 or $30,000 on a stunning ring when getting engaged.
However, this can lead to complications. That ring, now a significant asset comparable to the value of a new car, can become a point of contention if the relationship ends. So, who gets to keep it—the person who purchased it or the person who received it as a gift?
Timing and conditional gifts
Two key factors often come into play: Timing and the concept of conditional gifts.
Engagement rings are frequently considered conditional gifts rather than outright gifts. In this context, the “condition” is typically the recipient’s agreement to marry the person who gave them the ring.
That’s why timing is crucial. If an engagement is called off and the recipient decides not to proceed with the marriage, they may be required to return the ring because the condition of the marriage was not fulfilled.
Conversely, if the couple does marry and later divorces, the recipient may be allowed to keep the ring. After all, they fulfilled the condition of marriage. Additionally, they may not have chosen to get divorced in the first place. For instance, maybe they discovered that their partner was having an affair, effectively ending the marriage.
Exploring your options
Every situation is unique, and disputes over engagement rings are particularly common in high-asset divorces where substantial sums of money and valuable property are involved. If you are navigating such a dispute, take the time to explore your legal options carefully.