Michael - The equity that you place into your home is fully protected. The exceptions are:
(a) Liens and judgments for the payment of taxes and assessments on real property.
(b) Liens and judgments for obligations contracted for the purchase of real property.
(c) Liens and judgments for labor, services, or materials furnished to repair or improve real property.
(d) Liens and judgments for other obligations contracted for house, field, or other labor performed on real property.
Criminals who use the proceeds of illegal activity to purchase a homestead can claim the homestead exemption of Article X, Section 4 of the Florida Constitution from civil forfeiture proceedings. Tramel v. Stewart, 697 So.2d 821 (Fla. 1997). The Court noted the legislature was powerless to change this, and called this issue to the attention of the Constitutional Revision Commission.
Also, the equity can be taken by a subsequent court judgment if it was proven to be turned from a non-exempt asset into an exempt asset and directly utilized to defraud a creditor.