In Pennsylvania, gifts between a husband and wife are marital property. This is the case regardless of whether the gift was jewelry or other personal property given on an occasion such as a birthday or anniversary.

The engagement ring is different! An engagement ring is a conditional gift based upon the promise to marry. The ring becomes the property of the recipient upon the marriage. The acceptance of a marriage proposal is insufficient to meet the implied condition of the gift. Therefore, if the marriage does not occur, the condition has not been met and the ring must be returned to the donor, regardless of which party breaks the engagement. If the marriage occurs, the engagement ring becomes the recipient’s separate property.

But beware if you reset or upgrade your diamond engagement ring during your marriage. The engagement ring, or at least the “upgraded” portion, could be considered marital property.