[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR25.2516-1]

[Page 569]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 25_GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954--Table of Contents
 
Sec.  25.2516-1  Certain property settlements.

    (a) Section 2516 provides that transfers of property or interests in 
property made under the terms of a written agreement between spouses in 
settlement of their marital or property rights are deemed to be for an 
adequate and full consideration in money or money's worth and, 
therefore, exempt from the gift tax (whether or not such agreement is 
approved by a divorce decree), if the spouses obtain a final decree of 
divorce from each other within two years after entering into the 
agreement.
    (b) See paragraph (b) of Sec.  25.6019-3 for the circumstances under 
which information relating to property settlements must be disclosed on 
the transferor's gift tax return for the ``calendar period'' (as defined 
in Sec.  25.2502-1(c)(1)) in which the agreement becomes effective.

[T.D. 6334, 23 FR 8904, Nov. 15, 1958, as amended by T.D. 7238, 37 FR 
28732, Dec. 29, 1972; T.D. 7910, 48 FR 40375, Sept. 7, 1983]