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Your statement is technicaly correct but the OPs situation has an exception under 724.15(2)(e).
If the individuals are related within the second degree of consanguinity or affinity then no permit is required to transfer. This includes spouses, parents, siblings, children, uncles, aunts, uncles, grandparents, and first cousins.
Since this was between spouses it is not a violation of Iowa Law.
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Correct, as I stated in post #3. Pahoo disagreed that a permit was ever required, which is why I posted the wording of the law.