In Florida, dividing assets in a divorce, especially understanding homestead exemption’s impact on marital property, can be complex. This blog explores Florida’s property division laws in divorces, with a focus on real estate and the homestead exemption.”
Understanding how Florida handles property division during divorce, including homestead exemption details, is crucial for anyone facing or planning for divorce.
If the deed lists both spouses’ names, the property might count as marital, no matter the purchase date. Using marital funds for mortgage payments or improvements can lead to asset co-mingling and complicate ownership.
Mortgage After a Divorce
If the divorce agreement doesn’t mandate selling the property, one party must handle the monthly mortgage payments. If they fail to pay, the mortgagor will hold both parties accountable if they are both on the promissory note.
Should the responsible party not make payments, the other party, as per the divorce agreement, can seek compensation for losses incurred due to this non-compliance. Both parties signing the divorce settlement must understand all conditions related to property sale and mortgage payment responsibilities.
When creating divorce settlements involving real estate, pay close attention to clauses about property sale and mortgage debt assumption. For example, in a specific Florida case, the ex-wife petitioned the court (in McDonald v. McDonald) for the right to sell the property after her ex negated his responsibility to make mortgage payments. The court ruled she couldn’t sell the property because the settlement agreement didn’t properly address the non-payment issues.
Selling a Jointly Owned Property
You need to file a partition with the court in the county of the home for selling a marital home. This partition needs to include the names and addresses of all parties with an interest in the home and their particular share of such interest.
In Florida, a home bought together by a married couple becomes a tenancy by the entirety. Both parties have rights to sale profits and share any related debts. In addition, the creditor of one spouse cannot go after the property held in a tenancy by the entirety without the consent of both parties.
A property held in both names, even if bought before marriage, counts as a marital asset in a tenancy by the entirety. However, if only one party bought the property before marriage and it’s in their name alone, it’s separate property. If the party not on the title wishes to dispute this, he or she needs to prove that he or she contributed financially to the purchase.
Property Classified as Homestead Property in Florida
Florida’s homestead exemption is designed to prevent judgment by creditors on a property deemed to be the owner’s principal residence. This means a creditor will not be able to force the sale of the house to satisfy a debt, and the law will block a creditor’s attempt to establish a lien on the home. It may also reduce taxes on the property. However, the homestead exemption must be established before any creditor takes legal action.
Homestead classification benefits homeowners by providing added protection during financial hardships. To qualify, couples must prove the property is their primary residence and agree jointly on any sale.
It’s wise for both parties to consult an attorney to ensure proper drafting of the homestead exemption, given its advantages.
Exceptions to the homestead exemption are rare but include obligations like property tax payments and labor costs for home improvements.
Conclusion:
In Florida divorces, a house often represents the couple’s most significant asset. Properly understanding and handling homestead exemption and property division are crucial to safeguarding what you’re entitled to. For tailored advice, always consult a knowledgeable attorney.
The legal process can get difficult, which is why we always recommend that you seek the assistance of counsel; or at least have a consultation. Schedule a consultation with our team today to review the issues of your case, the legal options you may have, and certain rights that pertain to your unique situation.
Have more questions? Let us know by sending an email to: questions@legallotus.legal and we will do our best to develop content to provide you with direction and insight!
For more information:
Check out and subscribe to our YouTube Channel
Follow us on Instagram
Like us on Facebook
Visit our website
Shop our Legal Templates
No Attorney-Client Relationship or Legal Advice: Communication of information by, in, to, or through this Website and your receipt or use of it: (1) is not provided in the course of and does not create or constitute an attorney-client relationship; (2) is not intended as a solicitation; (3) is not intended to convey or constitute legal advice; and (4) is not a substitute for obtaining legal advice from a qualified attorney. You should not act upon any such information without first seeking qualified professional counsel on your specific matter. The hiring of an attorney is an important decision that should not be based solely upon Web site communications or advertisements. Feel free to contact us if you need legal assistance.