Title 26 — Internal Revenue Code
Chapter 12 — Gift Tax
§ 2516. Certain property settlements
Statutory text
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—
to either spouse in settlement of his or her marital or property rights, or
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Aug. 16, 1954, ch. 736, 68A Stat. 409 · 68A Stat. 409
Enacted · 26 U.S.C. § 2516
Aug. 16, 1954, ch. 736, 68A Stat. 409
Source evidence
Code source credit
Aug. 16, 1954, ch. 736, 68A Stat. 409Tax Reform Act of 1984
Pub. L. 98–369 div. A title IV § 425(b) · 98 Stat. 494
Substituted · 26 U.S.C. § 2516
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”
Source evidence
Code amendment note
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”.Enacted provision · exact public law section
(b) Section 2516 Extended to Agreements Entered Into Within 1 Year After Divorce.— Section 2516 (relating to certain property settlements) is amended by striking out so much of such section as precedes paragraph (1) thereof and inserting in lieu thereof the following: “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—”.Effective date note
Pub. L. 98–369, div. A, title IV, § 425(c)(2), July 18, 1984, 98 Stat. 804, 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].”
1 of 2 references resolved to an enrolled provision · 1 partial
Editorial Notes
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”.
Statutory Notes and Related Subsidiaries
Effective Date of 1984 Amendment
Pub. L. 98–369, div. A, title IV, § 425(c)(2), , 98 Stat. 804, provided that: “The amendment made by subsection (b) [amending this section] shall apply to transfers after the date of the enactment of this Act [].”
Credits
1954–1984 · 2 acts
- 1954Aug. 16, 1954, ch. 736, 68A Stat. 409
- 1984Pub. L. 98–369, div. A, title IV, § 425(b), , 98 Stat. 804.
Show as published
(Aug. 16, 1954, ch. 736, 68A Stat. 409; Pub. L. 98–369, div. A, title IV, § 425(b), , 98 Stat. 804.)