Florida Appeals Court Strikes Creditors’ Contempt Remedy

Assuming a Florida debtor owns personal personal property (example, cash, stocks, LLC interests) in a jurisdiction outside of Florida, can a Florida judge compel a judgment debtor to bring the assets in to Florida to pay a Florida judgment creditor, and can the judge hold the debtor in contempt of court if the debtor does not comply? The answer is “no” according to a recent Florida appeals court decision. Continue reading

Is Debtor’s Deposit of His Own Money To Joint Bank Account A Fraudulent Transfer?

Generally, when a spouse who is subject to a money judgment transfers his separate property to joint ownership with his non-debtor spouse, the transfer is subject to challenge as a fraudulent conveyance. The issue is complicated when the debtor spouse deposits money he earned himself in to a pre-existing joint bank account. Continue reading

Expressing Inheritance of LLC Membership Interest in Operating Agreement

I sometimes find clients who want to customize their LLC operating agreements to express who will inherit their membership interest upon their death. For instance, a client may ask me to express that if on of the member’s dies the remaining LLC member will inherit the decedent’s interest, or that the decedent’s heirs will automatically take over the LLC membership interest. Continue reading

How To Organize a Business Conducted on Florida Homestead Property

A client wants to operate a software business on his Florida homestead property located outside a municipality. He is concerned about asset protection. He wants to build a separate building on the property, near his house, to use as an office. He wants to know whether he should create an LLC to own the business and the new building on his property. He proposes that the business would lease the office building from the new Florida limited liability companyContinue reading

Conditional LIfe Estate Protected Under Homestead Law

A client lived in a home titled in the name of his father’s living trust. The client had previously owned the home and then transferred the house to his father’s trust. The deed reserved to the client a life estate in the home that his father could terminate at any time in his sole discretion. The client wants to know if his interest is protected by Florida homestead law under his father’s trust agreement. Continue reading