References in periodicals archive ?
In addition to Florida state courts, bankruptcy courts have also weighed in on the application of the exceptions to the homestead exemption.
The issue before the bankruptcy court was whether the exceptions to the homestead exemption required that the fraud or the egregious conduct be committed by the homeowner claiming the exemption.
However, in both Fishbein and Financial Federated, fraud had been committed to procure the funds used to acquire or pay off the mortgage on the homestead. In Fishbein, the Florida Supreme Court allowed the bank an equitable lien against the homestead under the doctrine of equitable subrogation since the bank's mortgage, which had been obtained by fraud, had been used to satisfy the prior liens against the home.
In addition, in Financial Federated, the funds used to purchase the debtor and nondebtor's homestead were broker commissions derived from the procurement of investors in a Ponzi scheme.
Neither Fishbein nor Financial Federated considered the question of whether a debtor that passively receives fraudulent transfers and uses them to invest in, purchase, or improve the homestead constitutes the required fraud or the egregious conduct sufficient to impose an equitable lien or constructive trust on the homestead.
In Havoco, the Florida Supreme Court made clear that the imposition of an equitable lien or constructive trust on the homestead requires that the funds be obtained through fraud or egregious conduct and be used to invest in, purchase, or improve the homestead.
constitutional developments of the homestead right after 1889 in
(8) The state constitutional framework for homestead laws,
homestead laws in a state constitutional context as interpreted by the
Homestead rights secure a family's shelter against financial
Secondly, homestead rights aim to shelter the marital relationship
without the other, can neither mortgage nor convey the homestead. (15)