A homestead exemption is a legal provision that shields a home from some creditors following the death of a homeowner's spouse or the declaration of bankruptcy. Tax Benefits of Florida Homestead.A homestead exemption can benefit homeowners if one spouse in a twoincome household dies. So, a homestead exemption is a legal provision designed to protect the value in a principal dwelling place. Title 9 - Property Tax Credits and Property Tax Relief Subtitle 1 - Statewide Mandatory Section 9-105 - Homestead Property Tax Credit. If you co-own the home with someone other than your spouse, your share of the home's value will be exempted. Q. I already have a homestead exemption. In the most recent case on this issue, In re Lee, 574 B.R. 286 (Bankr.