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HOMESTEAD EXEMPTIONS: "MOVED OUT" SPOUSE GETS MORE PROTECTIONS
Civil Procedure Code Section 704.720
Homestead exemptions protect some equity of a debtor’s principal home. To qualify for the exemption, the debtor, or his or her spouse, have to continuously live in the home from the date the lien is recorded against the home until the court rules that the homestead is exempted.
When spouses decide to separate or divorce, one spouse often moves out, while the other continues to reside in the family residence. The homestead law provides, however, that if the judgment debtor or his or her spouse reside in separate homesteads, only one homestead is exempt upon entry of the dissolution of marriage judgment.
This means that the "out-spouse" loses his or her homestead exemption at the time the dissolution of marriage judgment is entered. In many cases, however, the division of community property does not occur until well after the dissolution of marriage judgment. In these cases, the “out spouse” loses his or her homestead protection even though he or she still owns the home. This result is particularly unfair where the judgment debtor moved out to avoid physical abuse.
This new law provides an automatic homestead exemption to the “move out” spouse until a judgment or agreement is entered between the spouses dividing the community property.
For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
web site: dca.lacounty.gov