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Kim Kardashian Explains 'Engagement' Ring While Dressed as Blonde Mermaid for Halloween (PHOTO)

Kim Kardashian recently stunned onlookers by stepping out in a blonde wig at a Halloween party in New York City and the reality TV star took the time to explain her new diamond ring which has prompted reports of an engagement.

Kardashian, 31, had been spotted wearing the new sparkler on her pinky finger in recent weeks fueling rumors that Kanye West, 35, may have proposed after just 10 months of dating. The pair stepped out for Midori's Green Halloween party on Oct. 27 and although they were very much a couple, Kardashian, who dressed up as a mermaid, denied that she is engaged.

"It's just a fab pinky ring," Kardashian told Life & Style magazine at Midori's Green Halloween party, which she hosted in NYC on Oct. 27. "It's from [jeweler] Lorraine Schwartz. Don't read into it too much, too many rumors; it's just a great ring. That's it."

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The "Keeping Up With The Kardashians" star stepped out in a tightly fitted green and shell-like mermaid costume while West opted for a sailor look but it was Kardashian's $2000 blonde wig that set tongues wagging. The reality star admitted that she is open to making a more permanent transition from brunette to blonde.

"I would go blond! I think it's fun, you know? I'm going to keep it on for at least a night and see if it's true that blonds really have more fun," Kardashian told Us Magazine.

On Thursday it was claimed that Kardashian, who is still legally married to NBA star Kris Humphries, has set aside a $20 million budget for an alleged wedding to West. Her best friend and business associate, Jonathan Cheban, revealed that the reality star will likely announce an engagement after her divorce is finalized.

"It would be great [if Kim and Kanye get married]! She needs to get divorced first, though. When [Kris Humphries] is done playing games, I guess she'll get engaged," Cheban reportedly told Life & Style magazine at Gabrielle's Angel Foundation 2012 Angel Ball.

Kardashian infamously filed for divorce from Humphries after just 72 days of marriage on Oct. 31, 2011 and although she has since moved on with West, 35, her divorce remains unresolved.

"Kim doesn't really pay attention to [her relationship with Kris] anymore, so she just lets it go and she's happy. It's yesterday's news," Cheban sniped.

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