Can Married Couples Have Separate Homestead Exemptions
The Second District Court of Appeal has recently ruled on the Pasco County Wells v. Haldeos case, challenging the idea that married couples can never have separate homestead exemptions. The court decided that under specific circumstances, where the husband and wife have genuinely established two separate permanent residences and do not share financial ties or benefits, they can each be eligible for a homestead exemption if they meet the other requirements.
Jointly-Owned Property and Homestead Exemptions
Can someone receive a homestead exemption on their Florida property if they or their spouse already benefit from a similar exemption on a jointly-owned property in another state? The answer is no. According to Fla. Stat. 196.031(6), if a person receives an ad valorem tax exemption in another state based on permanent residency, they are not entitled to a Florida homestead exemption. So, if your spouse has a residency-based tax exemption or credit in another state, and your name is on that property, you will likely be denied a homestead exemption in Florida.
But what if your name isn’t on your spouse’s out-of-state property? This situation is more complicated. Some counties might still deny you a Florida homestead exemption, arguing that you indirectly benefit from your spouse’s exemption. In other counties, you might have a chance, but you still need to consider the “family unit” provision of the Florida Constitution.
The “One Exemption Per Family Unit” Rule
Since 1968, the Florida Constitution has stated that only one homestead exemption is allowed per individual or family unit. The original proposal was to limit the exemption to one per individual or married couple, but the final version uses the term “family unit.” This has led to speculation about what constitutes a family unit. Although no appellate courts have addressed this issue, the Attorney General’s office and several Florida trial courts have provided some guidance on whether and when a married couple can claim separate homestead exemptions.
Guidance from the Attorney General
In response to inquiries from Florida Property Appraisers, the Attorney General has issued advisory opinions, which, while not binding, carry some weight. Opinions 075-146 and 2005-60 suggest that a husband and wife can establish separate family units and receive separate homestead exemptions. The Attorney General indicated that financial interdependence is a key factor; if one spouse maintains the home of the other, they likely wouldn’t be considered separate family units.
Insights from Trial Courts
Though no appellate courts have ruled on this matter, several trial courts have. In Pasco County, a judge disagreed with the Property Appraiser’s claim that a married couple automatically forms a single family unit entitled to only one exemption. The judge generally followed the Attorney General’s advice, finding that the couple did not constitute a single family unit because one did not maintain the home of the other.
In Sarasota County, a judge considered a case where a married couple owned and lived in separate units within the same condominium. The judge ruled they weren’t entitled to separate exemptions, stating that the couple would need to file for a dissolution of marriage and clearly show an end to their family relationship.
Similarly, in Hillsborough County, a judge found that a couple was not entitled to separate exemptions because their finances were substantially mingled, they were married, and they functioned as a family.
Conclusion
Married couples are not allowed to receive dual homestead exemptions on jointly-owned properties. For properties that are not jointly owned, they still need to overcome the constitutional limitation of “one exemption per family unit.” There is no binding authority on whether and when a married couple can be treated as two separate family units eligible for two separate exemptions. The Attorney General emphasizes financial independence, but courts also consider the relationship status. In practice, some Property Appraisers deny dual exemptions to all married couples, while others investigate the couple’s finances and living arrangements. The penalties for improperly receiving an extra exemption are severe, so couples considering this should be honest with the Property Appraiser about their status and seek legal counsel.
For more personalized legal assistance, contact Gabriel Jose Carrera at 954-533-7593 or email [email protected].
