In New Jersey, an unconditional inter vivos gift is final, even in an engagement setting. However, a conditional gift must be returned if the condition is breached.[1]
In Beberman v. Segal, the court opined that if the engagement is broken the ring should be returned, since it is a conditional gift.[2] The court further stated that an engagement ring can be recovered by the party who gives the ring to the opposite party, if the agreement to marry is dissolved by mutual consent, or the recipient of the ring unjustifiably breaks off the engagement. The engagement ring cannot be recovered by the party who gave the ring if the party who gave the ring unjustifiably breaks the agreement.
[1] Aronow v. Silver, 223 N.J. Super. 344 (Ch.Div. 1987)
[2] Beberman v. Segal, 6 N.J. Super. 472 (Law Div. 1949)