News Release
Feb 1, 2008 - Planning on Giving a Ring for Valentine's Day? Know the Law of Engagement Gifts
Every year thousands of Americans choose Valentine’s Day to ask for a sweetheart’s hand in marriage. Of course, an engagement ring is the enduring symbol of the covenant to marry. But what happens to the ring if the engagement is called off? Considering the often substantial worth of the ring and the emotions of both parties involved, the question of the ring’s ownership can turn from an afterthought to a bitter and awkward situation.
Thankfully, the law is clear. In Michigan, engagement rings are a conditional gift. If the condition of the marriage is not fulfilled, the ring or its value must be returned to its giver no matter who broke the engagement or caused it to be broken. This also applies to any other gift given instead of a ring.
This wasn't always the law. In fact, not until 2001 did Michigan courts have the opportunity to definitively resolve the issue with a case from Oakland County concerning a $19,500 ring. [1] In old England--the source of much of our own property law--if the man “unjustifiably” broke off the engagement, the woman could lawfully keep the ring! (In those days, of course, the woman never proposed, and English courts allowed a jilted woman to sue her ex-fiancé for the cause of breach of promise to marry.) In other words, it all depended on whose fault it was that the engagement was broken.
As one can imagine, over the years courts found that determining who in fact caused the break-up was easier said than done. As one New Jersey judge wrote, “What fact justifies the breaking of an engagement? The absence of a sense of humor? Differing musical tastes? Differing political views?” [2] Yet several states actually still follow the old “fault” rule. The modern trend, however, is the “no-fault” conditional gift rule followed in Michigan.
Extra engagement ring tips:
• In Michigan, an engagement ring passes to the estate of the recipient in the event the recipient dies before the marriage occurs and the engagement had not been broken. [3]
• The rule in the majority of jurisdictions appears to be that once the marriage actually occurs, an engagement ring becomes the unconditional property of the recipient and is not considered marital property to be split up in the event of divorce. [4]
• While Michigan courts have yet to speak on the issue, in some states the giver may not recover a ring given to a married woman in contemplation of her divorce and subsequent marriage to the giver, because bargains tending to bring about divorce are either illegal or contrary to public policy. [5]
Serving You:
Gillard, Bauer, Mazrum, Florip, Smigelski & Gulden provides complete legal services for all family law matters. Our attorneys are highly knowledgeable and experienced with divorce issues such as division of property, child custody, parenting time, spousal support, tax implications, and the protection of business assets. The law firm also offers a full practice in the family court in matters of juvenile delinquency, paternity, adoption, and guardianship.
Notes:
[1] Meyer v. Mitnick, 244 Mich. App. 697, 625 N.W.2d 136 (2001).
[2] Aronow v. Silver, 223 N.J.Super. 344, 538 A.2d 851 (Chan. Div. 1987).
[3] In re Lowe Estate, 146 Mich. App. 325, 379 N.W.2d 485 (1985).
[4] E.g., Ward v. Ward, 7 Neb. App. 821, 585 N.W.2d 551 (1998).
[5] E.g., Malasarte v. Keye, 13 Alaska 407 (1951); Hooven v. Quintana, 44 Col. App. 395, 618 P.2d 702 (1980); Morgan v. Wright, 219 Ga. 385, 133 S.E.2d 341 (1963).
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