Asset Protection in Florida

Asset Protection Guide | Hamisch Law

Client Education Series

Asset Protection
in Florida

Tenancy by the Entirety, the Five Unities, and LLC structures — and the mistakes that leave you completely exposed.

1 T/E Shield 2 The Five Unities 3 LLC Structures

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Section 01

Tenancy by the Entirety

A married couple holds property as a single unified legal entity. An individual creditor of one spouse cannot touch it — period.

⚭  Married Couple
🏠
Primary ResidenceJohn & Jane DoeTitled as T/E
🐷
Joint Bank AccountJohn & Jane DoeTitled as T/E
🏡
Investment PropertyJohn & Jane DoeTitled as T/E

        ✔  Shielded from individual creditors
      

Tenancy by
the Entirety

Individual Creditors

💳

John’s Credit CardIndividual debt · John’s name only

CANNOT REACH T/E PROPERTY

💳

Jane’s Credit CardIndividual debt · Jane’s name only

CANNOT REACH T/E PROPERTY

⚖️

John’s Business JudgmentPersonal liability · John only

CANNOT REACH T/E PROPERTY

Only a joint creditor of both spouses may pursue T/E property

Section 02

The Five Unities Required for T/E

T/E is not created by simply adding a spouse’s name to a deed. All five unities must exist at the moment the property is acquired. Missing even one means no T/E — and no protection.

Time

Unity of Time

Both spouses must acquire their interest at the exact same moment. One cannot add the other later.

Title

Unity of Title

Both receive title through the same instrument — same deed or account agreement.

Interest

Unity of Interest

Both spouses hold equal, identical interests. Neither may hold more than the other.

Possession

Unity of Possession

Both have an equal right to possess the entire property — neither may exclude the other.

Marriage

Unity of Marriage

The parties must be legally married at time of acquisition. T/E cannot exist between unmarried co-owners.

✕ Wrong — Not Protected

“I’ll Just Add My Spouse’s Name”

John purchased a rental property in his name alone in 2019. In 2024, facing potential liability, he executes a quitclaim deed to “John and Jane Doe, husband and wife.” A creditor challenges the T/E — successfully. The Unity of Time and Unity of Title are both missing. The property is reachable.

✓ Correct — Protected

Acquire Together from the Start

John and Jane purchase together at closing via a single deed to “John Doe and Jane Doe, husband and wife.” All five unities satisfied. If retitling is needed, the correct method uses a third-party intermediary (“straw man”) back to both spouses simultaneously — not a direct quitclaim from one spouse to both. Call us before you act.

📋 Bank Accounts & Financial Assets

The same five unities apply to bank and brokerage accounts. Simply adding a spouse as a joint holder to an existing account does not convert those funds to T/E property. The T/E designation must be explicit — stated in writing on the account documents — not assumed.

Section 03

LLC Structures & Creditor Protection

How multi-member and Wyoming single-member LLCs limit what a creditor of an individual member can reach — and why your structure choice matters.

🌴

Florida Multi-Member LLC2+ members · Fla. Stat. § 605.0503

🏢

LLC — owns the assetReal property, equipment, accounts

↑ owned by

👥

Member A & Member BEach holds a membership interest

Creditor of Member A

Cannot seize LLC assets. A judgment against a member is not a judgment against the LLC.

Cannot force dissolution or sale of LLC property.

⚠️

Charging order only — a lien on distributions if and when the LLC distributes. Not required to distribute.

✓

Other members fully protected — operations unaffected.

🏔️

Wyoming Single-Member LLC1 member · Wyo. Stat. § 17-29-503

🏢

Wyoming LLC — owns the assetReal property, equipment, accounts

↑ owned by

👤

Single Member100% membership interest

Creditor of the Sole Member

Cannot seize LLC assets — Wyoming statute expressly limits the remedy to a charging order even for single-member LLCs.

Cannot force dissolution or foreclose on the membership interest.

⚠️

Charging order = exclusive remedy by statute. Member-manager controls whether distributions occur.

⭐

Key for Florida residents: Multi-member equivalent protection with a single owner — something a Florida single-member LLC does not provide.

Quick Comparison — What Each Structure Blocks

T/E Property

✔ Full immunity — individual creditors blocked
✔ No charging order needed
✔ No ongoing compliance required
✗ All 5 unities required at acquisition
✗ Ends at divorce or death

FL Multi-Member LLC

✔ Blocks seizure of LLC assets
✔ Blocks foreclosure on membership
✔ Survives divorce
⚠ Charging order may reach distributions
⚠ Requires 2+ members for full protection

Wyoming SMLLC

✔ Blocks seizure of LLC assets
✔ Charging order = only remedy by statute
✔ Multi-member equivalent protection
✔ Single owner permitted
⚠ Annual Wyoming registered agent fee

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