Broken marriage engagements can be stressful and emotional times, and are further complicated when one or both parties has given the other an (often expensive) engagement ring. When an engagement has been ended by one or both parties, the question of ownership of the engagement ring often arises. If the recipient of the ring refuses to return the ring, the parties may consider their legal rights and obligations regarding ownership of the ring.

Laws regarding these rights and obligations vary from state to state, with states determining ownership of the engagement ring (1) based on who was at fault in the breakup of the engagement (analyzing the ring as a conditional gift, conditioned on the wedding taking place); (2) based on who ended the engagement (analyzing the ring as a conditional gift, conditioned on the wedding taking place); (3) without regard to who ended the engagement or was at fault in the breakup of the engagement (analyzing the ring as an unconditional gift that the recipient may keep); or (4) requiring the recipient to return the ring without regard to who was at fault or who ended the engagement (no-fault).

If the parties do get married the engagement and wedding rings are generally considered gifts to the recipient, and therefore separate property that is not subject to division or return upon divorce—unless the parties have a written agreement that provides otherwise.

Laws regarding the ownership of an engagement ring when the engagement is broken are usually located in a state’s statutes or court opinions (common law).

In Vermont, the issue of who keeps the engagement ring after a broken engagement is not explicitly addressed by statute. Instead, Vermont courts would likely consider the engagement ring as a conditional gift, which is contingent upon the marriage taking place. This means that if the engagement is broken, the ring should be returned to the giver, regardless of who is at fault for the end of the engagement. This approach aligns with the majority of states that view an engagement ring as a conditional gift. Once the condition (the marriage) is fulfilled, the ring becomes the separate property of the recipient. If the couple does get married and later divorces, the engagement and wedding rings are generally considered the separate property of the recipient and are not subject to division, unless there is a written agreement stating otherwise. It's important to note that without specific statutes, outcomes can vary, and it may be necessary to consult with an attorney to understand how these principles apply to a particular situation in Vermont.