Overview of Florida Homestead Protection

Florida homestead law protects a Florida resident’s primary home from levy and execution by their judgment creditors. Article X, Section 4 of the Florida Constitution states that a judgment creditor cannot force the sale of your home to satisfy the creditor’s money judgment. A recorded judgment does not attach to or become a lien on a debtor’s Florida homestead.

Courts have liberally expanded definitions of the Florida unlimited homestead exemption to include more than just a single family house. Condominiums, manufactured homes, and mobile homes are also afforded homestead protection from judgment creditors in Florida.

The protection of the Florida homestead is one of the strongest asset protection tools in the country. The law protects unlimited amounts of value in the debtor’s Florida home. Some judgment debtors living in other states will move to Florida and purchase a Florida homestead to protect their hard-earned money from collection by a creditor.

The Florida homestead protection against a judgment is especially strong compared to other states because it stems from the state’s constitution rather than a state statute. It is much harder to convince voters to repeal an important constitutional benefit than to change a state statute through legislation. In addition, future laws enacted by the Florida legislature cannot override or diminish protections provided by the Florida Constitution.

Lot Size Limits

The Florida Constitution defines a Florida homestead property as one’s principal place of residence subject to lot size limitations. Homestead protection is afforded to residences within a municipality on lots up to one-half acre and residences outside a municipality up to contiguous 160 acres. All contiguous property up to 160 acres is included in homestead even if the contiguous property has separate legal descriptions and tax numbers. There is no restriction on the square footage of the physical residence or the value of the property wherever located.

Florida homestead protection

If your homestead is on a lot that exceeds the ½ acre or the 160 acre size limitations, then the homestead protection will be allocated pro-rata to the total property value.

For example, consider a debtor that lives on a one acre lot within a city where protection is afforded only to ½ acre. The homestead protection would apply to 50% of the total value of a one-acre homestead property. The debtor is not permitted to survey the lot and allocate the protected portion to the physical dwelling and allocate the unprotected portion to the less-valuable back yard.

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Frequently Asked Questions about Florida Homestead

How do you qualify for homestead exemption in Florida?

Any natural person can be eligible for the Florida homestead exemption. To qualify, the debtor must be be a permanent Florida resident and the homestead property must be the debtor’s primary place of residence.

A second home or investment property cannot be considered a Florida homestead.

Only debtors who are natural persons qualify for Florida homestead protection, so properties titled in the name of corporations, limited liability companies, irrevocable trusts, or partnerships will not qualify as homestead property.

Property owned by a living trust can be homestead property according to several court rulings, and a Florida statute provides that a land trust may own homestead property.

What does a Florida homestead protect you from?

A Florida homestead protects your house from forced levy and sale by a civil judgment creditor. In other words, if you owe money on a judgment, the creditor cannot take away your home.

There are exceptions to what a homestead protects you from in Florida. The Constitution states that homestead is not protected from the following debts:
-Liens on the homestead voluntarily given to secure a loan, such as the mortgage to purchase your home or a home equity loan.
-Mechanics liens for goods and services provided to build, repair, or improve your homestead.
-Liens recorded prior to homestead acquisition to secure payment of homeowner association dues and special assessments.
-Property taxes, state tax, and IRS tax liens.

How do you claim the Florida homestead exemption?

For asset protection purposes, nothing needs to be done to claim the exemption. The exemption applies the moment you occupy the home with the intent for the home to your permanent residence. However, people seeking the homestead tax exemption may have certain filing requirements to claim the tax exemption.

What happens to a Florida homestead after death?

Homestead protection continues after the owner dies. A person’s homestead is not included in probate and it cannot be liquidated to pay a decedent’s creditors. If the decedent’s heirs or trustees sell the homestead after death the sale proceeds will pass to the decedent’s probate heirs and trust beneficiaries.

A creditor of the decedent has no additional remedies against the debtor’s homestead after the debtor’s death.

Are Mobile Homes Protected under Florida Homestead Law?

The Florida Constitution’s homestead law does not apply to a mobile or modular home situated on a leased lot. However, Florida Statute 222.05 protects mobile homes from judgment creditors.

The statute provides that mobile homeowners and occupants whose home is on leased land may claim the mobile home as their homestead and exempt it from levy and forced sale.

Can creditors put a lien on your house in Florida?

A Florida homestead property is generally exempt from civil judgment liens. However, you can always voluntarily place a lien on your homestead property. The most common example is your home mortgage. When you buy your homestead with a mortgage, you are voluntarily giving the lender a lien on your homestead property.

What does homestead mean in Florida?

For asset protection purposes, a Florida homestead is the place that you intend to be your primary, permanent residence.

Homestead Act

The Homestead Act refers to Florida’s constitutional response to the expiration of the federal Homestead Act of 1862, which granted any U.S. citizen 160 acres of land if they agreed to live on and improve the the land. The purpose of the federal Homestead Act was to encourage U.S. citizens to expand out west and other parts of the country.

Although the Homestead Act was passed in 1862, its benefits did not apply to people wishing to settle in Florida until 1873. But from that time until the Homestead Act was repealed, U.S. citizens could to the government for

The current Florida Constitution, which was ratified in 1968, used this same number of 160 acres as a basis for the Florida constitutional homestead protection against forced sale and levy. In other words, the Florida Constitution ensured that those federal grants of up to 160 acres were protected.

Jointly Owned Homestead

Joint ownership of a homestead can jeopardize the Florida homestead exemption when one of the co-owners does not reside on the property. A judgment against the non-resident owner will be a lien placed on the debtor’s interest in the property. A judgment creditor of the non-resident co-owner can force the property to be sold.

For example, assume a married couple adds their child on the title to their homestead for “estate planning” purposes because they want title to pass to the child when the parents die. If the child resides elsewhere, he is not entitled to homestead protection of his interest in the parents’ residence. A civil judgment against the child would become a lien placed on the child’s interest in the home. The child’s judgment creditor in that situation could levy upon the child’s ownership interest in the parent’s house and force the house to be sold at auction. The auction proceeds would be allocated between the child’s creditor and the parents. The parents would lose their home.

Waiting Period for Homestead Protection

There is no waiting period for protection under Florida homestead law. The protection attaches the day you first occupy the property with the intent to make it your permanent Florida homestead. There are no papers to file, no forms to fill out. There is a Florida statute pertaining to a “declaration of domicile” which may be filed with a court, but this declaration is not required in order to qualify for homestead asset protection.

Facts showing intent to occupy a homestead permanently, such as your drivers license and vehicle registration addresses, are more important than a declaration you sign or file with the court.

Fraudulent Conversions to a Homestead

A key feature of Florida homestead protection is the homestead’s exemption from fraudulent conversion allegations brought under Florida’s fraudulent conversion statute. Even after a lawsuit has been filed against them, a Florida resident can invest millions of dollars in large estate homes and farms and protect the full value of these luxury residences under Florida’s homestead law.

According to a key Florida Supreme Court ruling, a person can convert unprotected, non-exempt assets to his homestead at any time by either buying a new home or reducing the principal balance of an existing mortgage. A Florida resident can always protect his money under the homestead umbrella even if the asset transfer was clearly designed to protect the money from existing creditors.

There is an exception to the fraudulent conversion protection in cases where the debtor obtained money by deceit, fraud, or other egregious means and then used the money to purchase or improve the debtor’s homestead. A creditor may impose and foreclose an equitable lien placed on a Florida homestead if the creditor can prove that the debtor obtained money fraudulently or in breach of a fiduciary duty and then subsequently invested the same funds in a homestead property.

This does not mean that a monetary civil judgment for common law fraud supersedes homestead protection. A debtor’s homestead is exempt from collection of a money judgment founded on fraud or deceit. The equitable lien exception applies only where fraudulent obtained funds were invested in a homestead property. A transferee, or recipient, of a judgment debtor’s fraudulent transfer of assets who subsequently invests the assets received in to the transferee’s own homestead may be denied homestead protection because the debtor’s transfer was intended as a fraud against creditors.

Homes Under Construction or Under Contract

A property is not exempt under Florida Homestead law just because you intend to occupy the property some time if the future. Property held for a future residence cannot be homestead property until occupied. Future homes under construction are not exempt homestead properties. The homestead law requires that the debtor must actually reside in the property as a primary residence to have homestead protection.

If a civil judgment is recorded in the county where you own a house you intend to live in, or a lot upon which you are building a future home, the judgment lien will attach to the property. Your subsequent occupancy of the home as a homestead will not erase the prerecorded judgment lien.

Florida homestead law

Therefore, you should not purchase a homestead in any county where a creditor has previously recorded a judgment without careful planning as the prior judgment may take precedence over your purchase and occupancy of a homestead in that county.

Homestead Tax Exemption vs. Creditor Protection

The rules for homestead creditor protection are different than the rules for the homestead property tax exemption. For example, the homestead tax exemption requires that you occupy your home on January 1 and that you file papers with the county tax assessor or property appraiser. These tax exemption requirements are irrelevant for asset protection of the homestead. You do not have to file any documents with courts to qualify for homestead protection from judgment creditors.

In addition, there are state income tax principals that require some people to live in Florida more than 180 days per year to avoid income taxation in another state. Florida’s homestead law does not impose a minimum annual residency requirement.

Homestead in Bankruptcy

Florida homestead protection may not apply if the debtor files bankruptcy. Under bankruptcy law, homestead protection is available up to approximately $160,000 unless the debtor occupied his current Florida homestead property, plus any previous Florida homestead properties, for a continuous 40-month period. Joint bankruptcy debtors can protect approximately $320,000 of a jointly-owned homestead. These exemption limits increase from time to time so debtors must get the current limits from their bankruptcy attorney.

Also, a debtor’s transfer of cash into his homestead within 10 years of filing bankruptcy that is intended to defraud creditors may be challenged by the bankruptcy trustee as a fraudulent conversion if the transfer was intended to defraud creditors. Bankruptcy law has no effect upon Florida’s unlimited homestead exemption in state court proceedings including state court allegations of fraudulent conversion in to a homestead.

Proceeds from Sale of Homestead

Proceeds from the sale of a residence that qualifies as a Florida homestead may be protected after the sale if the debtor demonstrates an intent to reinvest the proceeds in a replacement homestead. However, the judgment debtor must meet several requirements.

First, the debtor must show that he is actively looking for a new home. Also, The debtor must not co-mingle the homestead proceeds with funds from sources. In order to keep homestead sale proceeds separate many debtors deposit homestead money in a new and separate bank account. These accounts are referred to as “homestead accounts.”

What to Do Next

Schedule a consultation to go through your assets and income and determine what is at risk of collection from a judgment creditor. We’ll tell you how to protect any exposed assets and answer any questions you have.

Page last updated on February 26, 2021

20 thoughts on “Florida Homestead Law”

  1. My situation is one where my estranged wife has filed for chapter 7 relief,. We own 2 pieces of real property ( < quarter acre each) one a rental & my homestead. Despite knowing I live in one of the homes in Florida she has included both as her assets. I Obviously I want to protect from the trustee this asset. I therefore, seek legal assistance.

  2. Once property from a deceased is determined by a judge to be Homestead Property can anyone including heirs put a lien against the property?

  3. I am faced with a possible judgement of $24k how can I protect my income from garnishments if a judgement is filed?

  4. If i am selling a house which is a homestead for many years to downgrade for a less expensive home, does the extra money that has been left over is still protected from creditors?

  5. My wife moved out of our house three months ago. Is she and her interest in the property still protected from judgement liens on the property?

  6. My wife and I jointly hold title to our Florida home (homestead). I (alone – not my wife) am involved in a lawsuit, which may not play out my way, and the other side may be awarded fees and costs. Can they put a judgment on this homesteaded property to get those fees and costs? I know they can’t force us to sell now to get their money…..but will they be able to get it down the line when we someday sell? This property is the only asset that has my name on it (as I said, jointly with my wife). All other assets are in my wife’s name alone.

  7. If I sell my homestead and immediately purchase a new homestead, will I be exposed legally from a new judgement on my proceeds from the sale?

  8. Are a homestead and tenants by the entirety bank accounts protected against administrative fines by a federal agency other than the IRS?

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