Clinging To Florida Residency During Planned Move To Another State
A self-employed client owns an exempt Florida homestead. He thinks business may be better in Georgia, so he opens a store in Georgia. He rents an apartment in Georgia. If the homestead sells for an amount greater than the mortgage the client intends to buy a Georgia property. He maintains his Florida drivers license and does not get a Georgia license. He used his Florida address on his 2010 federal income tax return. The client asks me if he is still a Florida resident.
Florida residency depends upon the person’s intent as indicated by the facts of is case. The client wants to move from Florida to Georgia. However, his plan depends upon the new store in Georgia being profitable, and to some extent, upon the sale of his Florida house. I think the client could argue that unless and until these same conditions are met he does not intend to permanently leave Florida and that his venture into Georgia is temporary and conditional. His retention of his Florida driver’s license and ownership of the Florida property support Florida residence.
If the Florida house sells, or if the client gets a Georgia driver’s license, I believe the client will be a Georgia resident. Payment of state income tax in Georgia or using a Geogia address in a federal tax filing would also indicate Georgia residency.
This example shows how difficult it can be to answer questions about Florida residency. In this case, there are good arguments for Florida or for Georgia residency. For people who depend upon Florida residency for asset protection the only good advice is to make sure that you have “both feet in Florida.” I do not think Florida judges would be sympathetic to a debtor who is trying to make only the minimum commitment to Florida for asset protection purposes.
