A homestead or homestead estate generally includes a house, outbuildings, and the adjoining land owned and occupied by a person or family as a primary residence.

Many states—but not all—have laws that protect a person’s homestead from forced sale for the satisfaction (payment) of debts—at least up to a certain amount of the homestead’s value. These laws may be referred to as homestead exemptions or homestead laws and may be located in a state’s constitution or in its statutes.

The homestead exemption exists to provide a secure home for the family against creditors. The exemption is liberally construed to further its purposes. No specific writing is needed to claim a homestead exemption, but instead merely proof of concurrent usage and intent on the part of the owner to claim the land as a homestead.

In some states the constitutional family homestead exemption applies to the entire family, and not to either spouse individually. Therefore, so long as real property is a family homestead due to one spouse's intention and use, that property is protected by the homestead exemption, unless full abandonment has been pleaded and proved. Once a property has been established as a homestead, the property remains exempt unless it ceases to be a homestead due to abandonment, alienation, or death.

Abandonment of a homestead occurs when the homestead claimant ceases to use the property and intends not to use it as a home again. Anyone asserting abandonment of a homestead has the burden of proving it by competent evidence.

In New Mexico, the homestead exemption is a legal provision that protects a portion of a homeowner's primary residence from creditors in the event of bankruptcy or other financial distress. As of the knowledge cutoff in 2023, New Mexico's homestead exemption allows individuals to exempt up to $60,000 of their home's equity from creditors for a single homeowner, and up to $120,000 for a married couple filing jointly. This exemption is designed to ensure that individuals have a secure place to live without the threat of losing their home to satisfy debts. The exemption applies automatically without the need for specific filings to claim it, as long as the property is the owner's primary residence and there is an intent to use it as such. The protection extends to the entire family and is not limited to individual spouses. However, the exemption can be lost if the homeowner abandons the property, which means they cease to use it as a primary residence and have no intention of returning. The burden of proof for abandonment lies with the party asserting it. It's important to note that while the homestead exemption provides significant protection, it does not shield a homeowner from all types of debts, such as mortgages, taxes, or liens for work performed on the property.