After a relationship has broken down, there are many aspects to be considered, not least of which is the division of assets from that relationship. We often hear questions such as who keeps the house? Or, is the house to be sold and if so, who gets what from the sale proceeds? Is there a superannuation splitting order and who keeps what furniture etc. A less frequent question is who keeps the engagement ring?
Unfortunately, there is not a “one size fits all” approach when determining who keeps the engagement ring and there are many factors to consider. Some of the factors that may need to be considered can include:-
- who wants to keep the engagement ring;
- whether there is a sentimental value; and
- the value of the engagement ring.
If the engagement ring is of modest value, then it would most likely be considered by the Court to form part of the parties’ personal effects. However, if the engagement ring is of significant value (for example $20,000.00), it is likely to be treated as a separate and distinct asset. Like with all other assets in the matrimonial asset pool, the value attributed to a particular asset (such as an engagement ring) is not the purchase price of the asset but the current value of the asset.
In earlier times, Courts were more inclined to treat the engagement ring as having been a direct contribution by the person who purchased the engagement ring (generally the “husband”) and the Court would often order the return of the engagement ring to the husband.
However, in these modern times, parties often begin living together before their engagement and marriage. More often than not, such living arrangements bring a blending of finances between the parties - the joint purchase of significant assets, such as a house and a joint contribution towards payment of everyday expenses.
There is generally no straight forward answer to the question of who will keep the engagement ring (or any other asset for that matter) and each case turn on its own facts. It may even be the case (depending upon the value) that the engagement ring is to be sold and the proceeds divided between the parties.
We can help
Our Family Law Team can provide you with comprehensive and specific advice about property settlement with your former partner. Contact our Family Law Department on (07) 4771 5664 if you would like to arrange an initial consultation.