How Can a Former Spouse or Survivor Assert Entitlement to Surplus Funds Following the Owner’s Death or Divorce?
Detailed Answer
In Florida, when a property owner fails to pay county property taxes, the clerk sells a tax deed at a public auction. If the winning bid exceeds the amount owed, the clerk holds the excess proceeds as surplus funds. A former spouse or a survivor may claim those surplus funds if they can prove a legal interest in the property or sale proceeds.
1. Statutory Basis for Surplus Funds
Florida law requires the clerk to hold excess sale proceeds in a trust account. Any person with a legal or equitable interest may petition the court for distribution of those funds. Key statutes include:
- Fla. Stat. §197.582 – Disposition of surplus funds.
- Fla. Stat. §197.542 – Clerk’s duties regarding surplus trust funds.
2. Eligibility to File a Claim
You qualify to claim surplus funds if you hold:
- A survivorship interest as a spouse listed on the deed.
- Rights under a final divorce judgment dividing the property.
- Probate or estate rights as an heir or personal representative.
3. Procedural Steps
- Obtain the clerk’s certificate of sale and proof of surplus. The clerk mails notice and posts online.
- Within 2 years after issuance of the certificate, file a petition in the county circuit court where the sale occurred (Fla. Stat. §197.582(2)).
- Attach supporting documents:
- For former spouses: A certified copy of the final divorce decree specifying property division.
- For survivors: Death certificate and letters of administration or summary administration order.
- Serve interested parties per court rules. The clerk publishes notice of your petition in the county newspaper.
- Attend the hearing. The court evaluates your interest and may order the clerk to disburse funds.
4. Common Challenges
- Missed Deadlines: Courts strictly enforce the 2-year filing period.
- Insufficient Proof: Courts require clear, certified documents proving your legal interest.
- Competing Claims: Heirs, lienholders, and other claimants may oppose your petition.
Helpful Hints
- File early. Avoid last-minute rush that can lead to mistakes.
- Order certified copies of all documents from the clerk or clerk of the court.
- Track the clerk’s notice publication to confirm deadlines.
- Keep detailed records of service and filings for each party.
- Consult an attorney if multiple claimants contest your right.