How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37825
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
Type Your Bankruptcy Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

My husband and I are getting divorced. We are presently Chapter

This answer was rated:

My husband and I are getting divorced. We are presently Chapter 13 for the second time. We own the condo, but after the sale we plan to divide the proceeds in half. How long can both of us keep the proceeds before buying another homestead? Can I keep any part of the proceeds from the sale for my living expenses, since I am unemployed? Thank you

The Supreme Court of Florida addressed this precise question in the case of Orange Brevard Plumbing & Heating Co. v. La Croix,137 So.2d 201 (1962). After a lengthy examination of the law of other jurisdictions and in recognition of the policy behind the homestead provision of the Florida Constitution, the Court held that the proceeds of a voluntary sale of a homestead are exempt from claims of creditors as is the homestead itself ". . . if, and only if, the vendor shows by a preponderance of the evidence an abiding good faith intention prior to and at the time of the sale of the homestead to reinvest the proceeds thereof within a reasonable time." (emphasis supplied) Orange Brevard Plumbing and Heating Co. v. La Croix, supra. The Court also held that only that portion of the proceeds which are intended to be reinvested are exempt and those proceeds which are earmarked for reinvestment must be segregated from other funds of the seller. Orange Brevard, supra at 206.

As you can see, there is no particular time period during which the proceeds from the homestead sale remain exempt. It's up to you to demonstrate to the court, if a creditor attempts to reach your homestead assets, that you have a good faith intent to purchase a new homestead within a reasonable time.

Hope this helps.
socrateaser and 2 other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions