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Is Florida a Community Property State?

No, Florida is not a community property state. In a community property state, any assets acquired by either spouse during the marriage is considered to be marital property and therefore owned by both spouses. In some community property states, even income earned from pre-marital separate property is still considered community property. Instead, Florida is an…

Can an LLC Have a Second Member Without the Right to Profit Distribution?

A creditor’s collection against a debtor’s membership interest in a limited liability company is limited to a charging lien against the debtor’s “transferable interest.” A transferable interest makes the member eligible to receive LLC distributions. The Florida Statutes state that the charging lien is the creditor exclusive remedy against a transferable interest in a multi-member…

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Can Independent Contractor With 1099 Claim Head of Household Wage Garnishment Exemption?

A client wanted to know whether his commissions would be exempt from garnishment as head of household income even though the commissions were paid on a 1099 and the client was considered an independent contractor. What is the Head of Household Exemption? Florida Statute 222.11 exempts from garnishment any earnings paid to a debtor that…

Can You Use Florida Exemptions in Another State?

The general rule is that Florida residents cannot export Florida asset exemptions to other states. Therefore, out of state, or “foreign” judgments pose unique risks to judgment debtors living in Florida. Even though the judgment debtor lives in Florida, the judgment creditor could start judgment collection proceedings in the foreign state’s court. Most other states…

Can You Still Claim Homestead in Florida If You Temporarily Rent Out Property?

A recent client wanted to know if he would lose his homestead protection by temporarily renting out his homestead property to a tenant. In Florida, a judgment debtor’s homestead is absolutely protected from creditors. There is no monetary cap on the amount of the protected homestead, however the protection is limited to 1/2 acre in…

Can Non-Citizen Foreigner Qualify for Florida Homestead Protection?

A recent Florida bankruptcy case, In re De Bauer, examined when a non-citizen, or foreigner, could qualify for the Florida homestead protection. The Florida homestead is one of the most powerful asset protection tools for judgment debtors. The Florida constitution exempts an unlimited amount of equity in a debtor’s homestead, subject to certain acreage restrictions….

Does the “Catch-All” Remedy for Fraudulent Conveyances Allow Award of Monetary Damages?

A debtor can transfer assets to a non-debtor at any time including after a creditor has filed a lawsuit and even after the court has awarded a money judgment against the debtor. Such late asset transfers can be challenged as fraudulent conveyances. The creditor remedies for a debtor’s fraudulent conveyance statute are provided by section…

How to Protect Websites and Domain Names from Judgment Creditors

For some businesses, the most valuable asset they have is their website and domain name. Even in cases where the website and domain names would not have any market value to anyone else, a judgment creditor may still seek to levy on this unique personal property in order to pressure the debtor to pay all…