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:
- 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.
- $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.
Eric Rosenkoetter is a principal at Maurice Wutscher LLP, and is focused on advising clients with respect to federal and state consumer financial protection laws and data privacy and security, and he is a Certified Information Privacy Professional though the International Association of Privacy Professionals. He also brings to the table experience as a litigator, chief compliance and ethics officer, director of legislative affairs, federal lobbyist, and administrative hearings officer. Eric earned his Juris Doctor from Washington University School of Law, and his Bachelor of Business Administration from Southern Methodist University. He is a member of the International Association of Privacy Professionals, the Receivables Management Association International (RMAI), and ACA International. He is admitted to practice law in Texas and Missouri and in the U.S. District Courts for the Northern, Southern, Eastern, and Western Districts of Texas. For more information, see https://mauricewutscher.com/attorneys/eric-rosenkoetter/
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.