Engagement Ring: Marital Or Separate Property In Divorce?

I gave my wife a 5-karat diamond engagement ring, which I considered to be an investment for the family and marital property. She says that it was a gift to her and so it is her separate property. Who is right?

By Laura Lauth Updated: November 26, 2019Categories: Asset and Property Issues, FAQs, Financial Issues, Property Division

Engagement Ring: Marital Or Separate Property In Divorce?

You are correct; the diamond ring is now an asset of the marriage.

While a couple is still engaged, the engagement ring is considered a conditional gift and therefore the fulfillment of the gift is conditioned on the marriage taking place. If the parties end their engagement and do not get married, the ring should be returned to the purchaser.

However, once the parties become married, then the ring like every other asset that the parties own – becomes a joint asset of the marriage.

Broyles Kight & Ricafort, P.C. is a family law firm in Indianapolis, IN. Find out more by viewing their firm profile here.