A qualifying de facto relationship generally exists where parties have lived together for three years or more. If a qualifying de facto relationship exists, then the Property (Relationships) Act 1976 (“PRA”) will apply to the division of any property, including an engagement ring.
Under the PRA the ring would be the recipient’s separate property because property gifted between de facto partners (and spouses if you separate after marriage) is not relationship property unless used for the benefit of both parties.
Domestic Actions Act 1975
If you have not lived together for at least three years, then you can apply under the Domestic Actions Act 1975 (“DAA”). These applications are rare.
The DAA applies to property disputes arising out of agreements to marry, where the termination of an agreement to marry (i.e. the end of an engagement) gives rise to any question about property.
A recent appeal has considered such an application, to return a ring. In that case, the betrothed couple had only been living together for two years so they did not meet the three-year threshold for the PRA. An application was made in the Family Court for the return of the engagement ring.
Family Court
The recipient of the ring responded to the application with a letter making various claims about her contributions to the relationship, but she failed to file a formal notice of defence or any sworn evidence. The case proceeded with the recipient not attending the hearing. This is called “formal proof.”.
Despite that, the Family Court declined to make an order for the return of the ring. The Court came to this conclusion considering the claims made in the unsworn letter.
High Court
On appeal, the High Court found that the Family Court should not have considered the claims made in the letter because no formal response or evidence had been filed.
The High Court found that the admissible evidence showed:
(a) There was an agreement to marry;
(b) A ring was given pursuant to that agreement; and
(c) The termination of the agreement directly caused the loss of the ring because the recipient had refused to return it.
The Appeal was granted and an order for the return of the ring was made. The High Court refused to make an alternative order for payment of the ring’s value because that order had not been included in the application.
Comment
This is a rare example of a successful return of an engagement ring.
Lessons
An engagement ring is usually a gift to the recipient. Obtaining legal advice early in a relationship is always good to clarify your legal position.