JBK Associates, Inc. v. Sill, ___ So. 3d ___, 40 Fla. L. Weekly D616 (Fla. 4th DCA March 11, 2015)
After the dissolution of his marriage, the marital home was sold and the judgment debtor placed his share of the proceeds in three segregated accounts: a cash account and two investment accounts in securities, mutual funds, and unit investment trusts. The judgment creditor tried to garnish the investment accounts, but the trial court dissolved the writs based upon the homestead exemption, and the appellate court affirmed. If the proceeds from the sale of one homestead are held for reinvestment, with a reasonable time, in another homestead, the funds retain their homestead character unless they are comingled with other funds or they are held for general purposes. In addition, because the homestead exemption exists “to ‘protect the family’ [and] to ‘provide it a refuge from the stresses and strains of misfortune,’” the exemption may be lost if the proceeds from the sale of the homestead are placed in a risky investment. In this case, “[t]here was no evidence that the securities in [the debtor’s] account were particularly risky and the funds were kept ‘separate and apart’ from [the debtor’s] other funds.”
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