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

Jon Alper is a nationally recognized attorney specializing in asset protection planning. He graduated with honors from the University of Florida Law School and has practiced law for almost 50 years.

Jon and the Alper Law firm have advised thousands of clients about how to protect their assets from creditors.