A lawsuit can raise hard questions about your home and savings. Florida law protects certain assets from collection, but the protection depends on the property and the debt. A Florida asset protection lawyer can help you understand which exemptions may apply.
These protections generally limit what ordinary civil creditors can collect. They don’t stop someone from filing a lawsuit. Federal collection or bankruptcy rules can change the result.
Can a creditor take your home?
A qualifying Florida homestead is generally protected from forced sale to satisfy an ordinary judgment. The protection covers up to 160 acres of contiguous land outside a municipality. Inside a municipality, it generally covers up to one-half acre. A municipality is an incorporated community, such as a city or town.
There are exceptions for mortgages and property taxes. Certain debts for improvements or repairs can also fall outside the protection. A vacation home doesn’t automatically receive the same treatment as your permanent residence.
Are retirement accounts protected?
Florida protects many qualifying retirement accounts from creditors. These can include 401(k) plans and IRAs that meet the legal requirements. Certain inherited IRAs also receive protection under Florida law.
The account’s tax status and transfer history can affect eligibility. Certain divorce orders can also reach retirement funds. An ordinary investment account doesn’t become exempt simply because you intend to use it for retirement.
Can your wages be garnished?
Florida’s head-of-family exemption may protect earnings if you provide more than half the support for a child or another dependent. Disposable earnings of $750 a week or less are exempt from attachment or garnishment under this rule. Disposable earnings means pay remaining after legally required deductions.
Earnings above $750 a week are also generally protected unless you signed a valid written waiver. Protected earnings deposited in a bank can remain exempt for six months if they can be traced and identified. Keep records that show where deposits came from. Separate rules limit garnishment for people who don’t qualify as heads of family.
Are life insurance and annuities protected?
Florida generally protects the cash surrender value of life insurance issued on the lives of Florida residents. This is the amount available when a policy with cash value is surrendered.
Qualifying annuity proceeds can also receive protection from creditors. An exception applies when the policy or contract was established for the creditor’s benefit. The contract and the identity of the person whose debt is involved should be reviewed.
Does joint ownership with your spouse help?
Married couples may hold property as tenants by the entireties. This form of ownership generally protects the property from an ordinary creditor with a claim against only one spouse.
The protection generally doesn’t apply to debts both spouses owe. A Florida asset protection lawyer can review deeds and account agreements to determine whether this ownership exists. Having two names on an asset doesn’t always establish the required ownership.
What about cars and personal belongings?
Florida provides a $5,000 exemption for your interest in one motor vehicle. This generally protects equity rather than the vehicle’s full purchase price.
The Florida Constitution also protects $1,000 in personal property. An additional $4,000 personal-property exemption may apply if you don’t claim or receive the constitutional homestead benefits. That additional exemption doesn’t apply to child support or spousal support debts.
Can you protect assets by moving them into a trust?
A standard revocable living trust doesn’t add creditor protection to property that wasn’t already exempt. During your lifetime, those assets generally remain available to your creditors even though the trust may help avoid probate.
Moving property to interfere with a creditor’s collection can lead to a fraudulent-transfer challenge. A court may unwind an unlawful transfer. Get advice before changing ownership, especially if a claim already exists or is expected.
How can Estate Plan First help?
Estate Plan First can review your assets and explain which protections may apply. The firm can also help you assess ownership choices before you make changes that could affect your finances.
Speak with a Florida asset protection lawyer about your property and potential exposure. Contact Estate Plan First on (904) 595-1744 to discuss your options.
