Engagement Ring As Marital Property

Engagement rings are considered to be conditional gifts that vest upon the marriage of both parties. See Lindh v. Surman, 742 A.2d 643 (Pa. 1999) (holding that conveyance occurs only after the marriage).

Gifts received during marriage were previously seen to be the sole property of the receiving spouse. See Semasak v. Semasak, 502 A.2d 109 (Pa. 1985). In Semasak, the court cited to §401(e)(3) of the Divorce Code and stated, “this section excepts property received by a party by ‘gift, bequest, devise or descent’ from the concept of marital property except for its increase in value during the marriage.” 502 A.2d 109 at 110.

However, the Divorce Code was updated effective January 28, 2005 to add language stating that gifts during marriage shall be that “except between spouses.” 23 Pa.C.S.A. § 3501(a)(3).

Based on the holding in Lindh, the engagement ring did not vest as a gift until after their marriage and was therefore a gift between spouses. 502 A.2d 109; 742 A.2d 643. The Divorce Code as a general rule states that marital property, “means all property acquired by either party during the marriage and the increase in value of any nonmarital property.” Thus per the statute, the ring would be considered marital property as it was acquired after marriage.

23 Pa.C.S.A. § 3501(a.1). This language coincides with the holding in Anzalone. 835 A.2d 773.

In Biese v. Biese, the court applied the new Divorce Code as it pertained to the increase in value of the marital residence. 979 A.2d 892 (Pa. Super. 2009). In this case, the Husband had owned the residence prior to the marriage. Id. at 893. The court determined that only the increased value of the residence was to be split amongst the husband and wife as part of the marital estate. Id. at 894. Therefore, if the ownership of the engagement ring would have vested before marriage it would be considered nonmarital property and only the increased value would be marital property. However, based on current Pennsylvania caselaw, the conditional gift of an engagement ring cannot vest before marriage.

In conclusion, pursuant to 23 Pa.C.S.A. §3501 and current caselaw, initial value of the engagement ring must considered part of the marital estate because the wife’s ownership does not vest until after marriage.