This case law update concerns transfers of exempt property after filing bankruptcy, the statute of limitations for fraudulent conveyance, and proper wage garnishment jurisdiction. Bankruptcy Debtors Can Sell or Transfer Exempt Property After Filing Date In re: Hampton, 2020 WL 3969247 (Bankr. S.D. Fla. 2020). Summary A bankruptcy court confirmed that bankruptcy exemptions are determined …
Florida is a “separate liability state” and a “separate property state.” Separate liability means that each spouse may contract individually with a creditor and incur separate debts, or both spouses may jointly execute a debt contract to pay debts such as a mortgage loan or credit card. One spouse is not liable for the debts …
Can a Judgement Against You Affect Your Spouse in Florida? Read More »
Under tenants by entireties law, a joint account between married couples is protected from garnishment resulting from a separate judgment against just one of the spouses. But what if the joint account is not tenants by entireties? Or, what if the account is jointly owned between unmarried family members (such as parent and child)? When …
Garnishment of a Joint Account When Funds Belong to Non-Debtor Owner Read More »
Putting your house in a trust, such as a revocable living trust, offers some estate planning benefits in Florida, but some downsides as well. A trust has three parts: a grantor (you), who sets up the trust a trustee, who controls the trust assets (often you as well) one or more beneficiaries (typically you while …
Florida’s homestead exemption has been interpreted to provide protection not only for the physical homestead property, but also for both the cash and non-cash proceeds from a voluntary sale of the homestead as well. A financial account comprised of homestead sale proceed has often been described as a “homestead account.” Many clients have heard of …
How to Protect Proceeds of Homestead Sale in Florida Read More »
For many years the Cayman Islands and Cook Islands were the “go-to” jurisdictions for creation of an offshore trust for clients needing to protect assets outside of the United States. However, recently the Cayman Islands changed their laws making it a relatively unattractive location to set up an offshore trust. In contrast, a few years …
The general mantra for married couples in Florida is “joint assets, separate liabilities.” Owning assets jointly takes advantage of tenants by entireties protection against either spouse’s separate debt. But does that mantra extend to a couple’s vehiciles? Generally no. Unlike most personal property, vehicles are a common source of joint liability. In Florida, a person …
I have been getting a lot of questions about what the minimum percent a second member needs to have in order for an LLC to qualify as a multi-member LLC. The purpose of forming a multi-member LLC, rather than a single-member or solely-owned LLC, is because a creditor’s exclusive remedy with respect to the LLC …
Minimum Percentage to Qualify as Multi-Member LLC Read More »
Some clients are unsure what happens to their Florida homestead if they do not have a will. In some situations, a decedent’s only substantial asset was their homestead. When someone dies without a will they are said to have died intestate. A person’s homestead in Florida generally passes free and clear of any creditor claims. …
People are losing their jobs in Florida from the coronavirus pandemic. The COVID-19 coronavirus has already devastated the Florida economy. The entire tourist and convention industry is effectively shut down, and the restaurant industry is almost shut down too. Because these businesses cannot afford to pay their everyday employees many Florida employees will lose their …
Lost Job from Coronavirus in Florida—What to Do First Read More »
