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.

Jon Alper

About the Author

I’m a nationally recognized attorney specializing in asset protection planning. I graduated with honors from the University of Florida Law School and have practiced law for almost 50 years.

I have been recognized as a legal expert by media outlets such as the New York Times and the Wall Street Journal. I have helped thousands of clients protect their assets from creditors.