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. The Montana Code Annotated (MCA) provides for a homestead exemption under Title 70, Chapter 32. As of the knowledge cutoff in 2023, the exemption amount is up to $250,000 in home equity. This means that equity in a home up to that amount cannot be forced into sale by creditors for the payment of debts, with certain exceptions such as mortgages, taxes, and liens for labor or materials. The homestead exemption in Montana applies to the head of a family or any single adult person. No formal declaration is required to claim the exemption; rather, the individual must simply occupy the property and intend for it to be their primary residence. If a homestead is abandoned, which means the owner no longer uses the property as a primary residence and does not intend to return, the exemption can be lost. The burden of proving abandonment lies with the party asserting it. It's important to note that while the homestead exemption provides significant protection, it does not shield a homestead from all types of debts and legal actions.