
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC2516]

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

(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.)


                               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].''

                  Section Referred to in Other Sections

    This section is referred to in sections 2043, 7701 of this title.
