Florida is well known for having some of the strongest homestead protections in the country. If you live in the Sunshine State, your primary residence may be shielded from most creditor claims—but here’s the catch: those protections only apply under certain conditions. If your equity exceeds what’s covered, or your property doesn’t meet specific requirements, your home could be at risk.
This article will help you understand what the Florida Homestead Exemption really protects—and what you need to do if your home equity isn’t fully covered.
Florida Homestead Protection: A Constitutional Right
The Florida Constitution (ARTICLE VII, SECTION 6) provides a powerful protection: your homestead is exempt from forced sale to satisfy most debts. If a creditor obtains a judgment against you, they generally cannot seize your primary residence to collect on it.
This protection applies to:
- Single-family homes
- Condominiums
- Mobile homes
- Manufactured homes
But the homestead protection is only valid if the property qualifies under strict rules.
Property Size Limitations
The exemption protects:
- Up to 1/2 acre of land if your home is within a municipality
- Up to 160 contiguous acres if your home is outside a municipality
If your property exceeds these limits, the protection becomes pro-rated or partially invalidated. That means any equity tied to the “excess” land is vulnerable to creditors.
Eligibility Requirements
To qualify for Florida’s homestead exemption:
- The home must be your primary residence
- You must live in the home (temporary absences are allowed if you intend to return)
- Intent to be a resident of Florida. While there’s no specific time you must live in the home to establish intent, you must demonstrate a good-faith intention for it to be your permanent residence. Evidence of this includes:
- Having a Florida driver’s license or state ID.
- Registering to vote in Florida.
- Registering your vehicle(s) in Florida.
- Your Florida address is on your federal income tax return.
- Having utility bills or bank statements mailed to your Florida residence.
- Filing a Declaration of Domicile with the clerk of the court.
- The home must be owned in your individual name or certain trusts — Properties titled in the name of an LLC, irrevocable trust, or corporation do not qualify for Florida’s constitutional homestead protection.
What the Homestead Law Does Not Protect Against
Even when your property qualifies, the law includes several key exceptions. Homestead protection does not apply to:
- State, federal, or property taxes
- IRS tax liens
- Mortgages or home equity loans
- Mechanic’s liens for home improvement
- Child or spousal support orders
- Liens recorded before the home was your homestead
- Fraudulent conveyances (acquired with the intent to defraud creditors (i.e. using money obtained through criminal activity, or transferring assets into the homestead just before facing a judgment) may be successfully challenged by creditors.
What If You Have More Equity Than What’s Protected?
Here’s where many Florida homeowners run into trouble. While there’s no dollar cap on the homestead exemption, there is a land size cap.
Scenario: Your home in Miami sits on a 1-acre lot (within city limits), and it’s worth $2 million. You own it free and clear. Because the protection only extends to 1/2 acre, part of your home’s value—potentially hundreds of thousands of dollars in equity—is exposed.
If a creditor sues and wins a judgment, they could pursue that unprotected equity.
Similarly, if your property is titled incorrectly or fails to meet the residential use requirement, you may lose all homestead protection.
How to Protect Equity That Falls Outside the Homestead Law
If you have significant equity in your home that extends beyond what Florida’s homestead rules protect, there are several legal tools that may help reduce your exposure to creditors. These include placing the property into a qualified personal residence trust, transferring it to a properly structured LLC (especially for rental or mixed-use homes) or using equity reduction strategies like home equity lines of credit.
Each of these options has distinct benefits and drawbacks depending on your personal circumstances, financial goals, and tolerance for risk. Because the implications of these strategies can be complex, the best course of action is to meet with an experienced asset protection attorney who can evaluate your situation and design a customized plan to protect your home equity.
Florida Homestead Exemption and Property Taxes
Florida’s homestead law also offers a property tax exemption that reduces your home’s assessed value by up to $50,000. It also limits annual increases in assessed value to 3% or the Consumer Price Index (CPI), whichever is lower.
To qualify:
- You must own and occupy the home as of January 1st of the tax year
- You must apply for the exemption with your county
- You must not have rented the home for more than 30 days per year for two consecutive years
This tax exemption is separate from the constitutional protection against creditors, but both are important.
Protecting More Than Just Your Homestead
Florida’s homestead protections are some of the best in the U.S.—but they’re not bulletproof. If your property exceeds land size limits, or if it’s not properly titled, your equity could be exposed in ways you didn’t expect.
At Skabelund, we help clients create layered defense strategies to ensure their homes, savings, real estate, businesses and liquid assets are fully protected.
Don’t assume your home is safe just because you live in Florida. Reach out today to schedule a consultation and discover how we can help protect every dollar of your home equity.
