CSG Law Alert: Don’t Give the Ring Away Today!
Many people purchase engagement rings for their partner with the plan to propose on a special or romantic holiday. While engagements are exciting, there are certain things that those planning a birthday or holiday proposal need to know.
In New Jersey, engagement rings are considered conditional gifts. The condition is marriage, and if the marriage doesn’t happen, the ring must be given back. But once you say your “I do’s,” the ring belongs to the recipient forever; unless, of course, there is a prenup in place to ensure you get the ring back in the event of divorce.
But what happens when you pop the question on a holiday like Valentine’s Day, Christmas or the recipient’s birthday? Holidays are known for gift giving. So, if you propose on one of these holidays, is the engagement ring considered a regular gift, or a conditional gift? The answer – it depends. If the ring is considered a gift, not a conditional gift, then the recipient can keep the ring, even if the engagement is broken so clarity is key. If you propose on a holiday or a birthday, you need to explicitly state that the ring is an engagement ring, gifted with the intent to marry, to avoid any ambiguity in the event of a breakup.
While no one should go into an engagement or marriage with the intent to breakup, planning is important – whether that means planning the proposal, the prenup or the wedding itself. In our opinion, it is simply better to be safe than sorry – so don’t give the ring away on a special day!