Is an Engagement Ring an Irrevocable Gift under Maryland Law?

Here is a common scenario: someone proposes to their significant other, the significant other says yes, and then accepts an engagement ring as a sign of love. Then, a bit later, they called off the engagement. Naturally, the question becomes: who is entitled to the engagement ring? Was the ring an "irrevocable gift," meaning it is the rightful property of the recipient? Or should the receiver return it to the giver? This post will discuss the legal issues when a couple cancels a marriage after the giver gives the engagement ring. We will also discuss what happens when the marriage actually takes place.

Engagement Ring Given as a "Conditional Gift"

When we discuss engagement rings as gifts from a legal perspective, we are discussing whether the ring was given as a "conditional gift" or an unconditional gift. When someone gives an engagement ring, there is no question whether the ring is a gift. Exchange is intended, so there is no chance they formed a contract when the giver transferred the ring. All the elements of a gift are met: (1) the giver intended to transfer the ring as a gift ("intent"), (2) the ring is physically transferred to the recipient ("actual transfer"), and (3) the recipient accepts the gift ("acceptance"). However, in some cases, an engagement ring may be a conditional gift because it's only a true gift when the marriage occurs. In this sense, it may be more accurate to call the transaction a contract, as it involves an exchange of one thing (the ring) for something in return (the significant other's participation in the marriage). The moniker is ultimately irrelevant, as the central question is whether the giver gave a ring with the expectation that the recipient will follow through with the marriage. If such an expectation existed, the receiver should return the ring to the giver if the marriage never occurs.If the giver gives a ring as a conditional gift, the recipient will retain it if divorce occurs after marriage. In other words, if the marriage happens, the giver cannot attempt to reclaim the ring. Once the marriage occurs, the recipient meets the gift condition, so the giver no longer has any entitlement to it.

Engagement Ring Given as an "Absolute Gift"

If an engagement ring is not a conditional gift, the recipient may retain it even if the marriage never occurs. An independent analysis is required to determine whether a transaction qualifies as an absolute gift. When making that determination, a judge must examine a case's relevant facts and circumstances. Certain factors have been known to tip the scale in favor of an absolute gift classification. For instance, if the giver transferred the ring on a special occasion unrelated to the marriage, this may be sufficient to classify the ring as an absolute gift. If, for example, the giver transfers the ring on the recipient's birthday, this may qualify as an absolute gift.As mentioned, an independent analysis is always required because every scenario is unique.

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