California Increases Homestead Exemption

A newly effective California law has increased the amount of equity in a homestead that is exempt from execution to satisfy a judgment.  The law changes the homestead exemption amount to now be the greater of either: (i) $300,000; or (ii) 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, but not to exceed $600,000.  The law provides that these amounts will be annually adjusted for inflation, beginning January 1, 2022.  The law was enacted in September 2020, and took effect January 1, 2021.