Florida homestead is Florida’s #1 way to protect your assets. Basically, Florida homestead is a Florida Constitutional protection that allows you to protect your homestead from creditors (there are some exceptions which will be briefly explained below.
First off, you have to qualify for Florida homestead in order to benefit from its protections. In order to qualify, the following criteria must be met:
1. You have to actually own the property (meaning, it can’t be a rental);
2. You have to live in the property;
3. You intend for the property to be your primary and permanent residence;
4. The property is located in Florida (Florida homestead will not protect your home in Connecticut); and
5. If the property is located in a municipality (basically a city or town), it must be less than half of an acre.
If you meet the above criteria, you may qualify for Florida homestead protection. However, just because you qualify for homestead protection doesn’t mean you’re in the clear. As discussed above, there are a number of the exceptions that may affect your homestead protections. For example, in bankruptcy, if you purchased your property within 1,215 days prior to the bankruptcy, your protection is limited to $125,000 (this, of course, is provided you did not purchase this property with money from a homestead you just sold. If that is the case, you may still be fully protected).
For more information about the asset protection benefits of Florida Homestead as well as how to qualify for the protection, call us at (954) 613-0422 and we will be happy to help!