Law Talk

Pursuant to Article X, Section 4 of The Florida Constitution “There shall be exempt from forced sale under process of any court, and no judgment, decree or execution shall be a lien thereon, except for the payment of taxes and assessments thereon, obligations contracted for the purchase, improvement or repair thereof, or obligations contracted for house, field or other labor performed on the realty.”

While many states limit the amount a dwelling is protected under Homestead Exemption from creditors, Florida law protects the property completely.  Protection is granted as soon as the owners begin residing in the home and there is no additional paperwork to complete.  In order to qualify for the homestead exemption, the homeowner must reside in the residence and it must be the primary residence of the homeowner.  Properties owned by entities (i.e.; corporations, limited liability companies or revocable trusts) are not protected but may qualify under other Florida Law. 

Homestead exemptions can transfer from residence to residence as the owners move throughout Florida; however it can only be applied to the most current primary residence address.  The exemption will also apply to the living spouse or heirs in the event of the title holder’s death.

It is important to note that the homestead exemption does not offer protection in the case of a previous claim or lien in the same county prior to the purchase of the home.  Co-owners that do not reside in the home are also not protected under homestead exemption.   Furthermore, properties with tax liens, liens from homeowner associations, mortgage companies and homeowner construction liens are not protected.

In the case of bankruptcy, the Supremacy Clause of the U.S. Constitution overrides the Florida homestead exemption in the amount of protection.  A homeowner-debtor can claim the homestead protection to retain the equity of the primary home unless the homeowner petitioner has resided in the home for less than 1215 days before filing.  If so, then in Florida the equity of homestead exemption is limited to the first $125,000 if a single homeowner debtor or $250,000 for a husband and wife debtor. Consult an experienced asset protection and bankruptcy attorney to explain available options before declaring bankruptcy.

The homestead exemption referenced in this article should not be confused with the homestead tax exemption which is a separate real estate tax credit in calculating a homeowner’s annual real estate tax in Florida.

Please contact Ronald A. Luzim, Esquire in Coral Springs for all of your Florida asset protection and bankruptcy needs.

You and your real estate agent have found the perfect house to buy and are ready to sign on the dotted line.  Real estate agents are knowledgeable in buying and selling properties but cannot represent your interests on legal issues dealing with real estate transactions.  The purchase of a new home is one of the most significant purchases you will make.  Protect yourself and your assets by consulting with a real estate attorney.

As South Florida is a recently developed state it is very important to ensure that your real estate transaction occurs exactly as you expect and without any surprises, especially after the closing.  A good real estate attorney will perform may related professional services including:

• Analyze the purchase agreement and look for illegal structures on the property or lead paint, termites or other potentially hazardous materials.  Inspection reports can be difficult to understand but a real estate attorney will explain the findings.  This will allow you the opportunity to back out of the deal if the property is determined to not be a safe or a profitable investment.  Determine and advise of actions with time conditions.
• Search the property title for liens, probate problems and other issues that can affect closing on the property or become clouds affecting the title of the property.
• Works with all parties involved in the transaction including real estate agents, other real estate attorneys, mortgage companies, lenders and titles companies.  They will coordinate dates for inspections, document preparation and final closing.
• Review closing documents, insurance policies and deeds to ensure accuracy and compliance with state and federal laws.  A misspelled name can become a headache in the future!
• Explain property taxes to you.  The tax appraisal may change the calendar year after closing and you need to be prepared. And will explain the legal effects of the “Homestead” under Florida law.
• Attends the closing with you.  They are on-hand to ensure the closing runs smoothly and will be able to handle any problems that may arise.

In Florida most experienced real estate attorneys will provide legal services and title insurance services as part of their professional services; unlike a title insurance company.  Whether required or not, develop a relationship with a real estate attorney at the beginning of the buying or selling process for a piece of mind during what can be a very stressful and confusing time.

Ronald A. Luzim has been providing real estate legal and title insurance service since 1974 so Contact Ronald A. Luzim, Esquire in Coral Springs, Florida for all of your real estate legal needs.

Alimony – Payment that a family court may order one person in a couple to make to the other person when that couple separates or divorces.

In April 2013, Florida lawmakers sent Governor Rick Scott a request to drastically change the state’s current alimony laws.  According to the Florida Senate, SB 718 establishes guidelines for the duration and amount of alimony awards and revises other laws relating to dissolution of marriage cases.  Revisions included changes to the duration of alimony payments, awards of alimony based on length of marriage and amount of alimony based on income.  The original alimony statute was created at a time when the wife mostly stayed at home to take care of the household as many wives did not have technical skills or a college degree and would not be able to survive without their husbands’ income.  The husband would then be financially responsible to take care of his soon to be ex-wife.  Alimony is spousal support usually for the wife which was determined, amongst factors, including the needs of the wife coupled with the ability to pay of the husband when reviewed with the standard of living established by the husband and wife.  Child support is not alimony and is required to ensure that the needs of the children are being met.

Supporters of SB 718 wanted changes to the alimony laws to take into consideration that women are now active participants in the workforce and do not necessarily need the full financial support of their ex-husbands.  In addition, many ex-husbands are locked into paying a lifetime of set alimony payments without having the option to review the amount due to life and societal changes including decrease of income for retirement.

The proposed bill split the length of marriage into three categories: short, medium and long-term and had a retroactive effect affecting divorces prior to its passage.  Short marriages of 10 years or less would be capped at 25% of income, medium of 11-21 years of marriage would pay no more than 35% and alimony payments for marriages over 22 years would not exceed 38% of gross income.  The term of payments would be no more than half of the number of years of marriage unless a judge finds evidence to support awarding extra alimony.

Governor Scott vetoed this bill on May 1, 2013. In a letter written to Senator President Don Gaetz, Governor Scott explained his reasoning for not supporting the bill citing his opposition to the retroactive nature of the bill but did say “there are several forward looking elements of this bill”.  If passed, Florida would have become the fifth state to eliminate permanent alimony.

The bill may be tabled for now.  Revisions to this bill have been made and are likely to be pursued in the future but will likely be revived after the 2014 Florida Gubernatorial Election.   Please contact Ronald Luzim, Esquire of Coral Springs about how alimony can impact your divorce and related family issues.

Congratulations!  You and your spouse have given the greatest gift to your heirs by creating a will/trust in the event of your death, disability or incapacity.  Everything is in place and it is time to live life to the fullest.  Right?  Maybe,maybe not!

One of many issues may be missing from consideration regarding your will/trust – DIVORCE.  The divorce rate across the United States decreased as the economy took a down swing in 2007. Couples stayed together to avoid the expense of a divorce process and to conserve day-to-day monies.   Florida’s real estate market and economy is on the rise again and more and more couples are finally going through with their divorces.  They are moving on and creating new lives, with new people.

Life may be at status quo for the moment but reviewing your will/trust every few years is a great way to plan for the “what ifs” in life.  Consult with an experienced Estate Planning Attorney and Family Law Attorney and ask questions.  Consider the following ramifications of a divorce and how planning and updating your estate can benefit:

• Distribution of assets and liabilities – Under most circumstances, without written agreements otherwise, the State of Florida will divide assets and liabilities equally among both parties in a divorce.  Consider family heirlooms, inheritances and other items possessed prior to the marriage.  Do you want to be responsible for your ex’s school loans?  These items will be discussed during the divorce proceedings but the process will be quicker if arrangements have already been documented.
• Spouses of children or other heirs – Designated beneficiaries or heirs are not immune to divorce.  In cases of family businesses or previous inheritances, these assets need to be protected and distributed to those they were intended, not necessarily an ex-spouse.
• Leaving assets to a child in a trust to avoid possible alimony/support obligations to the ex-spouse is not a guarantee in Florida.
• Future spouses – Depending how assets are spit or designated, a new spouse may benefit from the assets sooner than the children from the original marriage.  This includes children of the new spouse and/or children of the new marriage.  Who should receive the tea pot your grandmother gave as a wedding present, a child of that union or the new spouse?  The more people added to the equation, the more diluted the assets can become.

Review your will/trust, family plan and circumstances every few years or when a life change has occurred to avoid the above pitfalls and unintended costs and consequences.  Life changes include birth, death, marriage and divorces within the family. For more information about estate planning, divorce and family matter and divorce, contact Ronald Luzim, Esquire in his Coral Springs office.

Trusts, wills, beneficiaries and fiduciaries are terms that are avoided because they question our mortality.  Some even believe their assets are not important after death.  In many cases, death is just the beginning of a long process for families, especially blended families.

As the old adage says “we don’t know what tomorrow may bring.”  Take the time to discuss your will/trust with an attorney that specializes in Estate Planning.  Many people wait until they become terminally ill to put a will and/or trust in place and some miss the opportunity altogether due to unexpected death.

A trust is a document that generally becomes effective during life whereas a will only becomes effective after death.

A will and/or trust is the best way to designate the beneficiaries of your inheritance.  An Estate Planning attorney will provide options based upon your situation as each financial and familial relationship is different.  States differ on the recognition of the fiduciary (person who takes care of the money from the estate).  An article in the January 2014 edition of the Florida Bar explains that Florida recognizes the surviving spouse as the fiduciary regardless if there are children from previous relationships.  In a familial situation that is already fractured, this can cause major trouble for family members.  To avoid this, the article suggests naming an independent fiduciary to alleviate the pressure and responsibility from the surviving spouse.  The independent fiduciary will make decisions based on the best interest of all parties involved.

Even in families with great relationships, money and things can turn people against each other.  In the case of items, find out from family members what they might want and include in your will and/or trust.  Try to resolve any conflict if more than one person wants a particular item.  Once a decision has been made, explain to all the reason for your decision.  Moreover, families with minor children need to designate a guardianship for the children. Without a guardianship, custody battles have the potential to tear families apart.

A will and/or trust should be made with a sound mind and heart.  There is no substitute for planning before an unexpected event happens.  The greatest gift you can give your loved ones is the easiest distribution of your estate as possible.  Contact Ronald Luzim, experienced Estate Planning Attorney and Mediator, at his Coral Springs location.

According to Merriam –Webster the definition of holistic is “relating to or concerned with wholes or with complete systems rather than with the analysis of, treatment of, or dissection into parts.”

More times than not, an attorney is hired due to conflict between couples, estates and business partners.  A disagreement has occurred, tempers flare and feelings are hurt.  Parties react and want to attack with their emotions rather than with facts.

An Integrative and Holistic Attorney listens to their client, filters out the emotion and determines the cause of the disagreement.  Once the root cause has been established, the attorney can better advise the client on how to proceed in the legal process and offer support in healing the wounds.  Many times this approach allows the case to move through the legal system more rapidly rather than filing and answering complaints based on emotions.

In order for this approach to work, clients are responsible for the following:

1. Provide Relevant Documentation.  Make sure documents are originals or certified copies.
2. If previous legal action has occurred, bring ALL the documents supporting the case not just those in your favor.
3. Honesty is the Best Policy 
   a.  Be honest on all forms and questionnaires.  Your attorney is your advocate and needs all information in order to proceed in the best possible manner.
   b.  Encourage friends, relatives and coworkers to provide honest testimony.
4. Counseling – A court case is sometimes the end of a relationship or in the case of divorce with custody orders is the beginning of a new one.  Counseling can help in several ways:
   a.  Provides closure
   b. Teaches how to deal with the other person in a positive manner.  This is especially important in custody situations.  Conflicts are between the parents and children should not be used as pawns.

This information will allow an experienced integrative and holistic attorney to counsel his client about the client’s alternatives and risks and together the client and attorney can choose the best approach to follow to achieve the client’s goals and financial objectives which will then be pursued by the attorney.

With the help of an Integrative and Holistic Attorney and reasoned input by the client the events leading to the legal case can be a positive learning experience.  Sometimes it is hard to realize that life on the other side of a legal case can be empowering and satisfying. 

Contact the Coral Springs Law Office of Ronald A. Luzim, P.A. today learn more about his integrative and holistic approach to Holistic Law.