In short: In JBK Associates v. Sill Bros. (Fla. Apr. 28, 2016), a judgment creditor garnished a debtor’s homestead sale proceeds parked in an investment account. The Florida Supreme Court held the money stayed exempt: proceeds keep homestead protection if the owner intends in good faith to reinvest in a new homestead and keeps them separate, even if they are invested meanwhile.
The Facts
JBK obtained a judgment of about $740,000 against Patrick Sill in 2010.
Sill and his wife sold their marital home in October 2013 as part of their divorce.
Sill’s share, about $458,700, went into a Wells Fargo Advisors account titled “FL Homestead Account,” split among cash and securities subaccounts holding mutual funds and unit investment trusts.
JBK served writs of garnishment on Wells Fargo in 2014. Sill moved to dissolve them on homestead grounds, and the trial court agreed. The Fourth DCA affirmed.
According to the opinion, Sill did use the funds to buy a new homestead within a reasonable time.
The Decision
The Florida Supreme Court approved the Fourth DCA in an opinion by Justice Quince (Case No. SC15-977, April 28, 2016).
Under Orange Brevard Plumbing & Heating Co. v. La Croix (Fla. 1962), proceeds from a voluntary sale of homestead stay protected if the owner shows a good-faith intent to reinvest in a new homestead within a reasonable time, does not commingle the funds, and keeps them separate.
Investing the proceeds in securities while looking for a new home was not inconsistent with that intent. The Court refused to read the exemption so narrowly that debtors could keep proceeds only in accounts earning nothing.
The case reached the Court from the Fourth DCA on constitutional-construction jurisdiction; it was not a certified question from a federal court.
The Law
Article X, § 4 of the Florida Constitution exempts homestead from forced sale. The Orange Brevard test extends that protection to sale proceeds held for reinvestment.
Proceeds lose protection if the owner abandons the intent to reinvest, mixes them with other money, or holds them too long.
Lessons
- Use a separate, clearly labeled account for homestead sale proceeds.
- Document your plan to buy a new homestead and do it within a reasonable time.
- Investing the money conservatively in the meantime does not by itself forfeit protection.
- The same principle matters when heirs sell a decedent’s protected homestead and when a surviving spouse downsizes.
Source: Opinion, JBK Assocs., Inc. v. Sill Bros., Inc., No. SC15-977 (Fla. Apr. 28, 2016)
Watch the Oral Argument
This is the recording of the Florida Supreme Court oral argument. The video description calls this a forced partition sale; the opinion describes a voluntary sale in a divorce. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Homestead Sale Proceeds in a Brokerage Account: Still Exempt? | JBK Associates v. Sill Bros.
Go Deeper
- Purge Paid, But Homestead Still Ordered Sold for Child Support? (Pacin v. Granja)
- Divorce Deal vs. Survivorship: Who Gets Joint Property When an Ex Dies? (Ebanks v. Ebanks)
- Testamentary Capacity in Florida: When Dementia Makes a Will, Deed, or POA Invalid
Frequently Asked Questions
Are proceeds from selling my homestead protected from creditors?
Yes, under Orange Brevard and JBK, if you intend in good faith to reinvest in a new Florida homestead within a reasonable time and keep the money separate.
Can I invest homestead sale proceeds without losing protection?
JBK says investing in a separate brokerage account is not inconsistent with intent to reinvest.
How long can I hold homestead proceeds?
Only a reasonable time. There is no fixed number of months, so move promptly and document your search.
What breaks the protection?
Commingling the funds with other money, using them for other purposes, or abandoning the plan to buy a new homestead.
Talk to a Florida homestead and probate lawyer
Weidner Law, P.A. handles Florida homestead, probate and real estate disputes from St. Petersburg. If you need a probate real estate lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: the full Florida Probate Code and Probate Rules and the Florida Trust Code are on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
