They arrived at the ocean-view restaurant—what a setting to pop the question in!—at around 6:10 p.m., seemingly for a casual night out. About 45 minutes after they were seated, Arquette motioned for the fam to follow him outside, where he got down on one knee and, at sunset, offered up an engagement ring with a large blue center stone.
"Coco, did you know?" McLarty was heard asking Coco, who coyly replied, "Maybe" and then giggled, "Engaged! Engaged!"
McLarthy was beaming from ear to ear when they walked back inside.
The couple welcomed baby Charlie together in April. At the time, Arquette's rep said, "Mom, dad and baby are doing well. They appreciate all of your well wishes and thank you for respecting their privacy at this time." They revealed that they were expecting in November.
The Scream star is dad to daughter Coco with ex-wife Courteney Cox. They married back in June 1999 and separated in October 2010 after nearly 11 years together. Their divorce was ultimately finalized in May 2013 and throughout they seem to have stayed pretty friendly.
"In divorce you always have regret," Cox said in the February issue of More. "We were married for a long time, so it's not like we didn't try."
Incidentally, Arquette's proposal comes just days after Cox announced her engagement to Snow Patrol rocker Johnny McDaid. They revealed the news simultaneously on Twitter last week after she was spotted with a big diamond ring on that finger. "I'm engaged to him!" the 50-year-old Cougar Town actress wrote, while her rocker posted, "I'm engaged to her!"