An engagement ring is a “conditional gift” which is conditioned on there being a marriage. If the wedding is canceled for any reason, the condition is not met and the ring is returned to the giver of the ring.
But whose ring is it in the event the parties marry, but then later divorce? The answer, as crazy as this may sound, depends on which side of the state you live in.
The Courts in eastern Pennsylvania generally agree that the ring is a pre-marital (and therefore non-marital asset) asset because it was gifted before marriage, the marriage took place, the condition was met, and the ring belongs to the person who received it.
The Courts in western Pennsylvania generally agree that the ring is a marital asset, because upon the marriage, the condition was met and the ring belongs to the marriage.