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 Jersey, the concept of a homestead exemption is recognized to protect a certain amount of a homeowner's equity from creditors. New Jersey's homestead exemption is relatively modest compared to some other states. As of the knowledge cutoff in 2023, the exemption allows homeowners to protect up to $25,150 of their home's equity for a single owner, and this amount can be doubled for married couples who co-own the property. This means that in the event of a bankruptcy, up to this amount cannot be forced into sale by creditors to satisfy debts. The homestead exemption in New Jersey is automatic and does not require specific filing to claim it; homeowners only need to demonstrate that the property in question is their primary residence and that they intend to use it as such. If a homeowner abandons the property, they may lose the protections afforded by the homestead exemption. It's important to note that while the homestead exemption provides some protection against unsecured creditors, it does not protect against secured creditors such as mortgage holders or those with liens on the property for unpaid property taxes.