The results of a lawsuit can be devastating, leading to the loss of the personal assets you have worked so hard to amass. Fortunately, Florida law provides strong legal protections for various personal assets from lawsuits. These asset protection laws allow Floridians to maintain their wealth against potential legal claims by using these strategies. At Kramer, Green, Zuckerman, Greene & Buchsbaum, P.A., our Boca Raton asset protection lawyers can provide you with the personal asset protection you need. Contact us today to learn more.
Protection for Your Primary Home
Under Article X, Section 4 of the Florida Constitution, your primary home, or your “homestead,” enjoys protection from the reach of creditors. You may maintain an exempt homestead that is up to ½-acre lot within a municipality or 160 acres in an unincorporated area.
You are entitled to homestead protection if you are sued, However, other rules apply in bankruptcy. The only exceptions to this legal protection are when you owe property taxes, state or federal income taxes, mortgage loans secured by the property, HOA or condominium assessments and for goods or services relating to the premises. In other words, if you owe any of these debts and the creditor sues you over that debt, you cannot protect the home from that type of creditor.
You also may be able to protect your primary residence if you are married. Generally, married persons who jointly own a primary residence hold it as “tenants by the entireties.” This type of ownership treats the property as a single, indivisible unit. Therefore, if one spouse is sued and a creditor obtains a judgment against him or her, the creditor generally cannot reach property that is held by a married couple as tenants by the entireties.
Retirement Accounts
Generally, placing funds in retirement accounts such as 401(k) plans and IRAs is another means of protecting funds from judgment creditors. Although annual contributions may be limited, depending on the type of retirement account, the total protected balance is unlimited. Even better, the funds can continue to grow on a tax-deferred basis, allowing you to continue to build wealth without any danger of a judgment creditor seizing those funds.
Under Florida law, rollover IRAs have the same protected status as traditional IRAs.
Life Insurance and Annuities
Florida law also generally protects life insurance policies and annuities, including both their cash surrender value and death benefits. Qualified beneficiaries, such as your spouse or children, typically can receive a payout from these policies without any fear of your judgment creditor attempting to seize the funds. In cases of fraud, beneficiaries may be unable to safeguard the funds from seizure by judgment creditors.
Frequently Asked Questions
Can creditors take my home if I lose a lawsuit in Florida?
Generally, no. Florida’s homestead exemption—under Article X, Section 4 of the Florida Constitution—protects your primary residence from most creditors. This protection applies to homes up to ½-acre within a city or 160 acres in unincorporated areas.
However, there are important exceptions that your lawyer will discuss with you.
What types of personal assets are protected from creditors under Florida law?
Florida law provides strong protection for several types of personal assets, including certain retirement accounts, life insurance and annuities, and homestead property. You should be aware there are some limited exceptions that may apply, but these asset protection tools allow Floridians to preserve wealth and financial security.
Shield Your Assets from Legal Threats
If you’re concerned about potential lawsuits, creditor claims, or judgments that could jeopardize your financial security, now is the time to act. Asset protection isn’t just about preserving wealth—it’s about creating legal barriers that safeguard your home, retirement accounts, life insurance policies, and other valuable assets from aggressive litigation.
At Kramer, Green, Zuckerman, Greene & Buchsbaum, P.A., our Aventura asset protection attorneys are well-versed in Florida’s laws and exemptions. We help clients implement proven strategies to reduce exposure and strengthen legal defenses against future claims. Call our office today at (954) 966-2112 or contact us online to schedule a confidential consultation. The best time to protect your assets is before a lawsuit is filed.