GPS, just like TV signals, are definitely susceptible to error, and since GPS is a 'line-of-sight' system that needs a minimum number of satellites 'in view' of your phone (the more satellites the more accurate the position is), if you have no visibility the reading might be a bad one or the accuracy of the position could be off by miles. If you were home, however, location was probably determined more by WiFi signals and mobile tower data, and that (especially tower data) might have 'glitched' into putting your location somewhere else.
These glitches, however, seldom last more than a few minutes unless your WiFi-based/tower-based location is permanently marked in the wrong location.
In this case, I think it's not the GPS you should worry about but just talking things out with your fiancee.