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California Amends Homestead Exemption Amount

On Sept. 9, 2020, California Assembly Bill 1885 was enacted, significantly increasing the amount of California’s homestead exemption.  The amendment becomes effective Jan. 1, 2021.

The law currently in effect provides three tiers of exemptions ranging from $75,000 to $175,000, depending on the status of the judgment debtor and homestead residents.  The amendment simplifies and increases the homestead exemption to the greater of:

  1. The countywide median sale price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed $600,000.
  2. $300,000.

These amounts will be adjusted annually for inflation.

The California Association of Realtors publishes monthly historical data for most counties reflecting the median sales price for a single family home.  For August 2020, of the 51 counties reported, only 15.7% had a median sales price under $300,000, 49% were between $300,000 and $600,000, and the remaining 35.3% were above $600,000.

 

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Eric Rosenkoetter is a principal at Maurice Wutscher LLP, where he provides counsel to businesses and consumer financial services firms nationwide. For many years, he has focused his practice on various aspects of financial services law. As a litigation attorney, he has conducted every aspect of the litigation process, including countless depositions, motion proceedings, bench and jury trials, and appeals in various courts. In addition, he has significant experience as a compliance and transactional attorney, providing strategic, business growth, legislative, compliance and regulatory advice to national corporations and trade associations. For example, he has drafted consumer contracts and disclosures designed to state-specific statutory requirements, and developed “Best Practices” guides and state-by-state compliance grids, for national financial services companies. He also conducted research and crafted a metrics report for a national trade association with analysis designed to counter the claims of advocacy groups. Eric’s experience also includes working for a national corporation as Executive Counsel, Chief Compliance and Ethics Officer, and Director of Legislative Affairs, and as a federal lobbyist and Director of Government and Public Affairs for a national financial services trade association. In the government sector, Eric presided over approximately 6,000 state administrative hearings, served as a staff attorney for the Missouri Senate, and handled litigation in 33 counties as a regional managing attorney. Eric frequently speaks to audiences on topics relevant to the financial services industry including regulatory compliance, data privacy law and related advocacy initiatives. For more information, see https://mauricewutscher.com/attorneys/eric-rosenkoetter/

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