On January 1, 2021, Governor Newsom signed AB 1885, which raises the amount of equity in your personal residence that is protected from judgment creditors. This protection is referred to as a homestead exemption.
This new law raises the homestead exemption (amount of equity that is protected) to the greater of the following:
- 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 six hundred thousand dollars ($600,000).
- Three hundred thousand dollars ($300,000).
What does this mean to you? In San Diego County, the median sale price of a single-family home is currently over $600,000. If your personal residence is in San Diego, then you qualify for a homestead exemption of $600,000. This means that if someone sues you and obtains a judgment, $600,000 of your home’s equity is protected from the judgment creditor and cannot be used to pay the judgment.
Record a homestead exemption form with the county to ensure your home is protected from future judgment creditors. Our office can prepare and record your homestead exemption on your personal residence for $100 plus costs. If you are interested in this service, please contact our office at [email protected].