Each Spouse in a Separated Couple is Entitled to Their Own Homestead Tax Exemption

By Zana Holley Dupee, Esq.

                Sometimes married couples separate, without getting divorced.  Then, they proceed to establish separate households.  The question has come up regarding whether each spouse can claim a homestead tax exemption on separate property.

                Homestead Tax Exemption is one of the many “homestead rights” in the state of Florida.  Florida's homestead tax exemption derives from Article VII, Section 6(a) of the Florida Constitution, which provides that a homestead exemption extends to “[e]very person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner.” However, section 6(b) directs that “[n]ot more than one exemption shall be allowed any individual or family unit or with respect to any residential unit.” Art. VII, § 6(b), Fla. Const.  

                The Homestead Tax Exemption is financially valuable.  It often reduces annual property taxes by $1,000 or more.  It allows the “Save Our Homes” exemptions to be applied as well.  So, it is not surprising that the taxing authorities in Pasco County wanted to argue that married couples are only entitled to one homestead tax exemption, even if they are separated and living apart.

                However, in the case of Wells v. Haldeos, the Florida courts found that the Pasco County Property Appraiser was wrong.  The appeals court pointed out that the property appraiser was required to follow the Florida Administrative Code rules.  Florida Administrative Code Rule 12D-7.007(7), provides as follows:

If it is determined by the property appraiser that separate permanent residences and separate “family units” have been established by the husband and wife, and they are otherwise qualified, each may be granted homestead exemption from ad valorem taxation under Article VII, Section 6, 1968 State Constitution. The fact that both residences may be owned by both husband and wife as tenants by the entireties will not defeat the grant of homestead ad valorem tax exemption to the permanent residence of each.

                In the prior case of Law v. Law, the court agreed that the husband could not have two homesteads and that a husband and wife in an intact marriage could not have two homesteads.  However, the court held that the husband's homestead could be different from the wife's homestead “where their separation was bonafide,” and it was the intent of the husband to live in his separate home.

                The appeals court in Wells noted that the property appraiser would have to review financial information from the couple in these situations to determine that they are completely financially separated.  The court also noted that the person claiming the homestead exemption has the burden of proving that he or she qualifies for such.

                If you have legal questions regarding your homestead tax exemption, or if you need assistance with real estate, probate or trust litigation, you can call Zana Holley Dupee to schedule a consultation at (352) 379-5900.

 

Comments

[Till Berden]

Can you tell me when our laws are correct and when they work the proper way.How you going to know? It is a big problem in our own home country.