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 Montana, the homestead exemption is designed to protect a portion of a person's home and adjoining land from forced sale by creditors, ensuring that individuals have a secure place to live despite financial difficulties. Under Montana Code Annotated § 70-32-104, a homestead exemption up to $250,000 in value is available. This exemption applies to the dwelling used as a primary residence, which may include a house, mobile home, or condominium, along with the land it is on. To qualify, the individual does not need to file any special paperwork; rather, they must simply occupy the property and intend for it to be their primary residence. The exemption is automatically in place upon meeting these conditions. In the case of married couples, the homestead is protected as long as one spouse has the intention and uses the property as their primary residence. The exemption remains in effect unless the property is abandoned, sold, or the owner passes away. Abandonment requires a cessation of use and the intent not to return, and the burden of proof for abandonment lies with the party claiming it.