Who Keeps the Engagement Ring if the Wedding is Called Off?

Courts tend to address who is entitled to an engagement ring after a couple decides not to marry based upon two approaches.

The first approach is based on Fault being the determining factor on entitlement to the engagement ring.  For example, if the man cheats on the woman and the couple does not marry, then the man is considered at fault resulting in the woman entitled to the engagement ring. 

On the other hand, the second approach states that Fault should NOT be considered as the determining factor.  Rather, the giving of the engagement ring is considered a conditional gift.  For example, the engagement ring is considered a conditional gift, the condition being marriage.  If the couple decides not to marry, the condition is not satisfied, and the person who gave the engagement ring  is entitled to the engagement ring.

Texas follows the Fault-based approach.  If you are at fault for the marriage not occurring, then the other person is entitled to the engagement ring. 

What about after we get married?  Despite the Fault-based approach, Texas courts have upheld that an engagement ring is an absolute pre-marriage gift.  Absolute gifts before and during marriage are considered that person’s separate property.  Therefore, if the couple does marry and then decides to divorce, the engagement ring is the wife’s separate property and will not be returned or divided.