Natasha Kurth
- Partner
- Family & Divorce
Diamonds are forever…
On a relationship breakdown, who keeps the engagement ring?
It may surprise some that lawyers are regularly asked this question. The 1930s marketing campaign from De Beers suggested it was appropriate to spend a single month’s salary on an engagement ring – but this is long outdated. Engagement rings have become a status symbol and, among the rich and famous, a hot topic in terms of the “four C’s” (the cut, colour, clarity and carat of the diamond) and ultimately the cost. So, thought must be given to how we protect these valuable items, when there is a chance that the ring will outlast the proposal.
Starting point
Under the Law Reform (Miscellaneous Provisions) Act 1970:
“The gift of an engagement ring shall be presumed to be an absolute gift; this presumption may be rebutted by proving that the ring was given on the condition, express or implied, that it should be returned if the marriage did not take place for any reason.”
The default position is that the ring is treated as an absolute gift and the recipient owns it outright, regardless of whether the engagement continues.
But…
The general presumption can be overturned where:
- there is a clear condition attached to the giving of the ring. For example, the giver states that it must be returned if marriage does not take place; or
- the ring is a family heirloom, or holds significant sentimental value. The court may then accept that there was an implied intention for the ring to be returned.
An anonymised case earlier this year, memorably named “RI v NG” by the presiding Judge, considered an application for the return of jewellery worth c.£68,000, including an engagement ring. Ultimately the Judge concluded that the presumption of a gift had successfully been rebutted on the evidence – the ring was given on condition it would be returned if marriage did not take place (see 1 above). As the engagement had been called off by the recipient, the jewellery was required to be returned. The case demonstrates how expensive litigation can stem from ambiguity about the circumstances surrounding gifts of jewellery. Clear evidence of any conditions attached to the gift are vital.
What if the relationship breaks down after marriage?
The starting point is no different. However, in divorce and financial remedy proceedings, the value of the ring may be considered as part of the recipient’s assets, particularly when the value is significant. Whilst it could therefore impact on the overall financial settlement, it would be unusual for a court to order its return.
How Wedlake Bell can help
In order to prevent later disagreement, couples should record any conditions attached to the gift of an engagement ring (or other item). A clear and simple way to do this is within a pre-nuptial agreement.
The Family Team at Wedlake Bell advises on all aspects of family law. We specialise in pre-nuptial agreements and benefit from the support of our Art and Luxury team. For further information, please contact Natasha Kurth.
This article is for general information purposes only and does not constitute legal advice or a comprehensive statement of the law. Specific legal advice should always be sought in relation to individual circumstances.
This article is for general information purposes only and does not constitute legal advice or a comprehensive statement of the law. Specific legal advice should always be sought in relation to individual circumstances.
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