Can You Segregate One-Half Acre Within a City to Protect It As Homestead?
If you have a homestead inside a municipality, you may think to segreate a half-acre of the parcel to make it comply with Florida law’s 1/2 acre limit of protected homestead.
The answer is no. You cannot subdivide the parcels to protect them. When you own more than ½ acre in a municipality, the homestead protection is pro-rata as to the entire property. The Constitutional homestead protects a proportion of the total value rather than a proportion of the underlying real estate.
However, if you convey the amount over 1/2 acre to a family partnership, I think a court would hold that same protection proportions applied to the transfer.
A creditor could challenge the transfer as a fraudulent conveyance of whatever was transferred out of the debtor’s name.
About the Author
Jon Alper is a nationally recognized authority on offshore trusts and asset protection. With more than fifty years of legal experience, he concentrates on structuring Cook Islands trusts, Nevis LLCs, and Florida-based protection strategies.
A Harvard University master’s graduate and an honors alumnus of the University of Florida College of Law, Jon has advised thousands of physicians, business owners, and families on safeguarding wealth. He is known for developing legal structures that are practical, cost-effective, and effective in high-stakes litigation environments.
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