As long as it's supposed to return a reference to the object, returning a NULL should be good.
However, if it's returning the whole bloody thing (like in C++ if you do: 'return blah;' rather than 'return &blah;' (or 'blah' is a pointer), then you can't return a NULL, because it's not of type 'object'. In that case, throwing an exception, or returning a blank object that doesn't have a success flag set is how I would approach the problem.
