Internal Revenue Code:Sec. 2516. Certain property settlements

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 12 - GIFT TAX
        Subchapter B - Transfers
      

Statute

    Sec. 2516. Certain property settlements
 
      Where a husband and wife enter into a written agreement relative
    to their marital and property rights and divorce occurs within the
    3-year period beginning on the date 1 year before such agreement is
    entered into (whether or not such agreement is approved by the
    divorce decree), any transfers of property or interests in property
    made pursuant to such agreement -
        (1) to either spouse in settlement of his or her marital or
      property rights, or
        (2) to provide a reasonable allowance for the support of issue
      of the marriage during minority,
    shall be deemed to be transfers made for a full and adequate
    consideration in money or money's worth.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 409; Pub. L. 98-369, div.  A,
    title IV, Sec. 425(b), July 18, 1984, 98 Stat. 804.)
 

Miscellaneous

                                 AMENDMENTS
      1984 - Pub. L. 98-369 substituted in introductory text ''within
    the 3-year period beginning on the date 1 year before such
    agreement is entered into'' for ''within 2 years thereafter''.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Section 425(c)(2) of Pub. L. 98-369 provided that: ''The
    amendment made by subsection (b) (amending this section) shall
    apply to transfers after the date of the enactment of this Act
    (July 18, 1984).''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2043, 7701 of this title.