Proceeds from the re-finance or sale of a Homestead
Are the proceeds from the re-finance or sale of a homestead owned by husband and wife protected from creditors? Yes, as long as the proceeds are re-invested in a new homestead or used for living expenses. Assuming the homestead is owned jointly and the funds are deposited in a joint bank account, the money would be protected from the creditors of either spouse individually as debtors.
Annuities also have very broad protection under Florida law. You could even invest the proceeds into a college plan. Because homestead properties are exempt assets in regards to Florida law, the transfer of money from a valid homestead to a protected or exempt asset should not be reversible as a fraudulent conversion in any court.
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