Engagement Ring - Is it Relationship Property?
Who owns an engagement ring if the relationship has broken up?
Mariah and James decided to split up. They attempted to divide their assets in an amicable manner. James took legal advice on the engagement ring.
James had paid $20,000 for an engagement ring for Mariah. The ring (an inter-spousal gift) was used exclusively by Mariah. The ring cannot be returned to James, nor is it relationship property. Under the Property (Relationships) Act 1976, it is Mariah’s separate property.
What about if James had taken a loan to purchase the ring?
Would the loan be a relationship debt which Mariah would be liable to pay a half share?
For the debt to be classed as a relationship debt to be shared equally, the loan would need to have been incurred for the acquiring, improving or maintaining relationship property.
As stated above, the ring is Mariah’s separate property, therefore the loan is James’ property in its entirety.