What Can We Learn From Sean “Diddy” Combs? The Surprising Lesson About Florida Homestead Creditor Protection

Oy Vey! Where to begin? Since this newsletter is not criminal law-based (thank the good Lord!), we will be focusing on the fact that prior to going to jail, the disgraced music mogul paid off his $18.8M mortgage on the very same Star Island mansion where he hosted his alleged “freak off” parties (ay-yay-yay).

The news all indicates that the mortgage payoff was to induce a judge to let him post bail instead of awaiting trial in jail. The Florida mansion was the center of the artist FKA Puffy’s bond request, and his attorney stated the payoff was to “build trust” (who’s going to trust this guy now???).

Either way, the judge denied his motion (twice) and ordered him to be held without bail.

What’s Really Going On?

However, this newsletter believes the bond story is only part of the equation. We think Combs got some good legal advice and is looking to take advantage of the Florida homestead creditor protection, which prevents homeowners from losing the equity in their primary residence to any legal claims or judgments.

What Is Homestead Protection?

When talking about “homestead,” we mostly refer to the very nice tax deduction on our primary residence. But a homestead property is also the best creditor protection you can get. Yes, you too have creditor protection on your primary residence! Should you do something terrible (don’t do it!), your primary residence is protected from the ensuing judgments.

Key Facts About Homestead Protection in Florida:

• Florida homes are the most protected in the United States.
• Some states offer limited protections (up to a certain dollar amount, and you need to live there LOL).
• In Florida, creditor protection is unlimited.
• Protection continues after someone passes away.
• It may even extend to the decedent’s spouse and children.

The Takeaway

So, there you have it. We learn that the Combs trial is sure to be disturbing, and all reports state that he is not getting any special treatment in jail while he awaits trial. With that said, we can get a quick lesson into the Florida homestead creditor protection rules—and why it’s great to be a Floridian.