A reader asked whether it matters if he purchases a Florida homestead or a Florida annuity before being served with a lawsuit, and whether he could purchase these assets even after a judgment is entered against him. The answer is much different for an annuity and a homestead. The purchase of an annuity is subject to challenge as a fraudulent conversion of assets if the annuity is purchased any time within the four year statute of limitations. The closer the annuity purchase is in time to the lawsuit, the harder it would be for the debtor to defend a fraudulent conversion action after judgment. An annuity purchase after judgment, or even after service of a lawsuit, would be very difficult to defend unless the purchase has clear and strong financial advantage.
Homestead purchases are subject to different rules. I have discussed many times on this blog that under ruling of the Florida Supreme Court a homestead purchase, including payment toward the mortgage on an older house, is mostly exempt from fraudulent conveyance attack. In the case of homestead, it generally will not make any difference if this reader invested money in a Florida homestead after being served with a lawsuit.