§ 704.720.Generally

Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 4. Homestead Exemption · Last amended 2008 · Last verified July 28, 2026

In one sentenceSection 704.720 makes a homestead exempt from forced sale up to the amount set by § 704.730, extends that same exemption to sale, insurance, or public-use proceeds for six months after the debtor receives them, and limits most debtors to protecting only one homestead at a time.

Full Text of § 704.720

Text sizeJump to: (a) (b) (c) (d)

(a) A homestead is exempt from sale under this division to the extent provided in Section 704.800.

(b) If a homestead is sold under this division or is damaged or destroyed or is acquired for public use, the proceeds of sale or of insurance or other indemnification for damage or destruction of the homestead or the proceeds received as compensation for a homestead acquired for public use are exempt in the amount of the homestead exemption provided in Section 704.730. The proceeds are exempt for a period of six months after the time the proceeds are actually received by the judgment debtor, except that, if a homestead exemption is applied to other property of the judgment debtor or the judgment debtor's spouse during that period, the proceeds thereafter are not exempt.

(c) If the judgment debtor and spouse of the judgment debtor reside in separate homesteads, only the homestead of one of the spouses is exempt and only the proceeds of the exempt homestead are exempt.

(d) If a judgment debtor is not currently residing in the homestead, but his or her separated or former spouse continues to reside in or exercise control over possession of the homestead, that judgment debtor continues to be entitled to an exemption under this article until entry of judgment or other legally enforceable agreement dividing the community property between the judgment debtor and the separated or former spouse, or until a later time period as specified by court order. Nothing in this subdivision shall entitle the judgment debtor to more than one exempt homestead. Notwithstanding subdivision (d) of Section 704.710, for purposes of this article, "spouse" may include a separated or former spouse consistent with this subdivision.

Plain-English Summary

This section turns the definitions in § 704.710 into an actual shield. A homestead is exempt from a forced sale to enforce a money judgment, up to the amount § 704.730 sets. That protection doesn't vanish the moment money changes hands: if the homestead is sold, damaged, destroyed, or taken for public use, the resulting proceeds — sale proceeds, insurance payouts, or condemnation compensation — stay exempt for six months after the debtor receives them.

That six-month window has a catch. If the debtor applies the homestead exemption to different property during those six months, the proceeds lose their exempt status from that point forward. The law is protecting one home's worth of equity, not letting a debtor stack exemptions on multiple properties at once.

Subdivision (c) reinforces that same limit for couples living apart: if a debtor and the debtor's spouse reside in separate homes, only one of those homes (and its proceeds) gets the exemption. Subdivision (d) softens that rule for a debtor who has moved out during a separation — that debtor keeps the exemption until the community property gets divided by judgment or agreement, or until a court sets a different cutoff, though still only for one homestead, not two.

Frequently Asked Questions

How long does the exemption follow the money if a homestead is sold?

The proceeds of a sale, insurance payout, or public-use compensation stay exempt for six months after the debtor receives them, unless the debtor applies the exemption to other property first.

Can a married couple protect two separate homes?

No. If the debtor and the debtor's spouse live in separate homes, only one home is exempt, and only that home's proceeds are exempt.

What happens if the debtor moves out during a separation but the spouse stays?

Section 704.720(d) lets the debtor keep the exemption until the community property is divided by judgment or agreement, or until a court sets another time, but still limited to one exempt homestead.

Does using the exemption on a new property affect old sale proceeds?

Yes. Once the debtor applies the homestead exemption to other property during the six-month proceeds window, the earlier proceeds stop being exempt.

Amendment History

Amended by Stats 2007 ch 153 (SB 433),s 1, eff. 1/1/2008.

Source & verification. Section text is reproduced verbatim from the Deering's California Codes Annotated / vLex. Enacted by the California Legislature. Last verified July 28, 2026. · Official source

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