1. Florida’s Constitution exempts homesteads from claims of creditors, making it one of the most debtor-friendly exemptions in the country.
2. Debtors in Florida are allowed to protect substantial assets and purchase expensive homes that are shielded from creditors.
3. However, there is an exception to this rule, which allows creditors to collect on homestead property located in a municipality that exceeds one-half acre.
4. Florida law allows for a homestead exemption, which includes the restriction of one-half acre of land for homestead property located within a municipality. – The Florida Constitution provides homestead exemption protection to real property located within a municipality, but only up to one-half acre of contiguous land.
– There are no limitations on the cost, size, or construction of the residence for homestead exemption protection.
– Florida courts deny homestead protection to any portion of property that exceeds the allowed acreage limitation, and any portion of property located within a municipality beyond one-half acre may be levied.
– A debtor may select his homestead in any contiguous shape from his qualifying lands, and a debtor may reasonably designate her one-half acre portion of the property, as long as the remaining portion has a legal and practical use.
– Anyone with an “interest” in the land may assert the homestead exemption, including a spouse not holding title to the property. – Courts use two methods for creditors to collect on property exceeding the allowed acreage.
– If the property is divisible, courts partition the property and allow the non-exempt portion to be sold for payment of debts.
– If the property is not divisible, courts order a sale of the entire property and apportionment of the proceeds. – The divisibility test in Florida courts considers if the property can be divided by perpendicular or horizontal lines and lawfully conveyed as an independent parcel under existing law.
– The test also considers whether the property is divisible and lawfully conveyable under local zoning and building regulations.
– In the case of In re Englander, debtors claimed their 1.05 acre lakefront residence as their homestead exemption, but local zoning and building regulations prevented the property from being subdivided, leading to the sale of the entire property and apportionment of the proceeds. 1. In re Kellogg: The court ordered the sale of a judgment debtor’s homestead property that exceeded one-half acre and was located within a municipality, with the proceeds being made available to creditors. The order was upheld because the township zoning regulations prohibited subdividing the land.
2. Calculating The Homestead Exemption: After a sale of a debtor’s property, the court decided that the debtor’s homestead-exempt funds should be calculated as a portion of the net proceeds of the sale, based on the debtor’s acreage share of the property sold. Only the proceeds remaining after specific debts are paid qualify as ‘homestead.’ 1. Property in Duval County is considered to be located within a municipality, due to Jacksonville being chartered with old city limits grandfathered in for homestead exemption purposes.
2. Creditors conducting business in Duval County should be aware of the old city limits when determining the homestead exemption for a debtor’s property.
3. The old city limits for Duval County are available on the county property appraiser’s website for consultation.
https://www.jimersonfirm.com/blog/2012/09/limiting-floridas-homestead-exemption-collecting-on-homestead-property-in-excess-of-one-half-acre/
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