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 Michigan, the homestead exemption is a legal provision that protects a portion of a homeowner's equity from being seized to satisfy certain types of debts. The Michigan homestead exemption allows homeowners to exempt up to $40,000 of the value of their homestead if they are under the age of 65, and up to $60,000 if they are 65 or older or disabled. This exemption applies to the debtor's equity in the property and is intended to provide a measure of security to families, ensuring that they have a place to live even in the face of financial difficulties. The exemption is automatic and does not require specific documentation to claim, but rather proof of occupancy and the intent to use the property as a primary residence. In the case of married couples, the homestead exemption applies to the entire family unit, protecting the property as long as it remains the family's primary residence. Abandonment of the homestead, which would end the exemption, must be proven by clear evidence of the claimant's cessation of use and intent not to return.