The 30-year-old U.S. Navy Lieutenant and undersea medical officer popped the question to the 26-year-old San Francisco social worker during Officer and a Gentleman's final Rose Ceremony, presenting her with a $50,000 Chopard diamond engagement ring.
"It's in their ABC contract that the ring has to be returned if they don't stay engaged," an "insider" told In Touch Weekly in the magazine's September 3 issue.
While the engagement may be off, Baldwin and Horst remain committed to trying to make their reality television romance work, even at the expense of returning The Bachelor-supplied bling.
"This is no longer a game show for us," Baldwin told In Touch. "Tessa and I love each other, but neither one of us is ready to get married, even if the engagement ring was the Hope diamond."