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 New Jersey, the concept of a homestead exemption is recognized to protect homeowners from the forced sale of their primary residence by creditors, but it is not as expansive as in some other states. New Jersey does not have a specific homestead exemption statute that provides a dollar amount of protection. Instead, the state follows the federal bankruptcy exemptions with the option for residents to choose the federal exemption scheme when filing for bankruptcy. As of the knowledge cutoff in 2023, the federal homestead exemption allows individuals to exempt up to $25,150 of their home equity from bankruptcy. This exemption is designed to help individuals maintain their primary residence in the face of financial difficulties. It is important to note that the homestead exemption in New Jersey does not protect against all types of debts; for example, it does not prevent foreclosure due to mortgage defaults or the collection of alimony or child support. The exemption is automatically applied upon filing for bankruptcy, and no specific declaration of homestead is required. The exemption applies to the property as long as it is the primary residence of the owner and has not been abandoned, alienated, or transferred upon the owner's death.