Fighting Over the Homestead Exemption
Posted By Posted by Stann Givens on Apr 8, 2011 12:50am PDT || Apr 8, 2011We try to keep our readers up to date on new areas of the Florida divorce process. One of these new avenues of disagreement is the fight over the dependency exemption on the marital homestead.
In Florida, the amount by which homestead real estate can be valued for property tax purposes cannot increase by more than 3% per year. In addition, the value of the property may be exempt from tax altogether up to the first $75,000 in value. In a recent amendment to the Florida Constitution, that homestead exemption is "portable" so that you may sell your previous homestead, buy a new one and pay no more tax on the newer, more expensive one than you were paying on the older, less expensive one.
Expert St. Petersburg divorce lawyers are keeping an eye on this factor when a settlement of a Florida divorce is being negotiated. If one spouse keeps the homestead that is worth $300,000, but is taxed at the rate of $150,000 and the other spouse purchases another homestead worth the same $300,000, the new homestead will be taxed at a much higher value. That difference in the tax bill will occur every year and could add up to very big dollars.
Our team of Tampa divorce attorneys is mindful of these new areas of strategy in Florida divorce and will help guide you through them to protect your interests in your divorce.