A homestead exemption is an amount the state protects for each residents in the event of a bankruptcy. Just about every state has homestead protection laws intended to protect land and homeowners from losing real estate and property in the event of a bankruptcy. These statutes can allow an individual to set aside a parcel of real property, or "homestead," which would remain off limits to certain types of creditors. Here is a brief summary of homestead laws in Wyoming.
Wyoming Homestead Statutes
While state homestead laws can be vary quite a bit, Wyoming’s homestead exemption is not one of the more generous exemptions. You can only exempt up to $20,000 of your home - or $40,000 for a married couple who files jointly. Homestead protections in Wyoming are highlighted in the chart below.
|Max. Property Value That May Be Designated 'Homestead'||$10,000|
|Maximum Acreage (Urban)||-|
|Maximum Acreage (Rural)||-|
Purpose of Homestead Laws
A bankruptcy proceeding will generally require a person to sell all of their assets in order to pay for their debts. One main purpose of homestead laws is to prevent homelessness in the event of bankruptcy. A person who goes through bankruptcy will always have fewer assets than they have liabilities.
As mentioned above, in Wyoming, when two or more people jointly own, and reside in, a homestead property, each is entitled to his or her own exemption. This means that if a married couple jointly owns their home, they can claim a total homestead exemption of $40,000.
Wyoming's homestead exemption applies to real property, including your:
Note that a property will only qualify for a homestead exemption if it is occupied by the person claiming the exemption, or his or her family. Also, if a person entitled to a Wyoming homestead exemption dies, and he or she leaves behind a widow, a widower, or minor children as survivors, then the survivors will be entitled to the homestead and it will be exempt from the debts of the deceased.
Wyoming Homestead Laws: Related Resources
Real estate laws can be confusing, especially where they overlap with state and federal tax laws. If you would like legal assistance with a real estate or bankruptcy case, you can contact a Wyoming bankruptcy attorney or a Wyoming real estate attorney. You can also visit FindLaw’s homestead protections section for more articles and resources on this topic.
Contact a qualified attorney.