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 Delaware, the homestead exemption is designed to protect a portion of a person's home equity from creditors in the event of bankruptcy. As of the knowledge cutoff in 2023, Delaware's homestead exemption is relatively modest compared to some other states. The exemption allows homeowners to protect up to $125,000 of their home's value. This means that in the case of bankruptcy, up to $125,000 of equity in the homeowner's primary residence cannot be used to satisfy debts to creditors. It is important to note that this exemption applies to the equity in the home, not the home's total value. The homestead exemption in Delaware is automatic and does not require specific action to claim it, but proof of occupancy and the intent to use the property as a primary residence is necessary. The exemption is intended to provide a level of financial security to individuals and families, ensuring that they are not left without a home in the event of financial distress. However, the exemption does not protect against all types of debts, such as mortgages, certain taxes, and liens for home equity loans.