What Happens to Your Florida Homestead Exemption During Divorce?
If you own a home in Florida, you probably already know that the homestead exemption is one of the best perks of living here. It can save you a significant amount of money on your property taxes every year. But what happens to that exemption when your marriage falls apart? If you’re heading into a divorce and wondering whether your tax savings are about to disappear along with your spouse, you’re not alone. This is a surprisingly common concern, and the answer matters more than most people realize.
How the Florida Homestead Exemption Works
Under Florida law, specifically Florida Statute § 196.031, any person who holds legal or beneficial title to real property, resides on it, and makes it their permanent home on January 1 of a given year is entitled to a homestead exemption from property taxes. It is one of the most generous property tax breaks in the country, reducing the assessed value of your home by up to $50,000.
The key date here is January 1. That’s the snapshot date the state uses to determine whether you qualify for the exemption for that tax year. So the timing of your divorce relative to that date can have real financial consequences.
What Changes When You Divorce?
A divorce can affect your homestead exemption in a few important ways. Here is a look at the scenarios that commonly come up:
- One spouse keeps the home. If one spouse is awarded the marital home and continues to live there as their primary residence, they can generally maintain the exemption, provided all of the qualifying requirements are still met as of January 1.
- The home is sold. If the couple sells the home as part of the divorce settlement, neither spouse will be eligible for the exemption on that property going forward. Each would need to apply for a new exemption if they purchase a new primary residence.
- Title changes hands. If a divorce requires transferring title from joint ownership to one spouse’s name alone, the county property appraiser’s office needs to be notified. Florida law requires a new application when the manner in which title is held changes.
- One spouse moves out before the divorce is finalized. If a spouse moves out and establishes a new permanent residence before January 1, they may no longer qualify for the exemption on the original home.
The Palm Beach County Property Appraiser’s office confirms that when homestead property experiences a change in ownership due to divorce, the owner must contact the appraiser’s office to ensure the exemption is properly updated or reapplied (Florida Statute § 196.031).
Don’t Overlook Portability
Florida’s Save Our Homes cap limits the growth in assessed value of a homestead property. When you move, you can transfer that benefit, known as “portability,” to a new homestead. Divorce can complicate how portability is applied, particularly if both spouses want to claim it when they each move to new homes.
Reach Out to Our Team for Help
Dividing property in a Florida divorce involves a lot more than splitting furniture and bank accounts. The homestead exemption, portability, and property tax implications can add real financial stakes to decisions you make during the process. At Schwartz | White, we help clients in Boca Raton and throughout South Florida navigate these issues with clarity. If you have questions about your home, your exemption, or your divorce, we encourage you to reach out to our Boca Raton divorce attorneys today to schedule a consultation.
Source:
flsenate.gov/laws/statutes/2018/196.031
