A homestead exemption is an amount the state protects for each residents in the event of a bankruptcy. Just about every state has homestead protection laws intended to protect land and homeowners from losing real estate and property in the event of a bankruptcy. These statutes can allow an individual to set aside a parcel of real property, or "homestead," which would remain off limits to certain types of creditors. Here is a brief summary of homestead laws in Wyoming.
Wyoming Homestead Statutes
While state homestead laws can be vary quite a bit, Wyoming’s homestead exemption is not one of the more generous exemptions. You can only exempt up to $20,000 of your home - or $40,000 for a married couple who files jointly. Homestead protections in Wyoming are highlighted in the chart below.
| Code Section | 1-20-101 |
| Max. Property Value That May Be Designated 'Homestead' | $10,000 |
| Maximum Acreage (Urban) | - |
| Maximum Acreage (Rural) | - |
Purpose of Homestead Laws
A bankruptcy proceeding will generally require a person to sell all of their assets in order to pay for their debts. One main purpose of homestead laws is to prevent homelessness in the event of bankruptcy. A person who goes through bankruptcy will always have fewer assets than they have liabilities.Â
Amount Doubles for Married CouplesAs mentioned above, in Wyoming, when two or more people jointly own, and reside in, a homestead property, each is entitled to his or her own exemption. This means that if a married couple jointly owns their home, they can claim a total homestead exemption of $40,000.
Wyoming's homestead exemption applies to real property, including your:
Note that a property will only qualify for a homestead exemption if it is occupied by the person claiming the exemption, or his or her family. Also, if a person entitled to a Wyoming homestead exemption dies, and he or she leaves behind a widow, a widower, or minor children as survivors, then the survivors will be entitled to the homestead and it will be exempt from the debts of the deceased.
Wyoming Homestead Laws: Related Resources
Real estate laws can be confusing, especially where they overlap with state and federal tax laws. If you would like legal assistance with a real estate or bankruptcy case, you can contact a Wyoming bankruptcy attorney or a Wyoming real estate attorney. You can also visit FindLaw’s homestead protections section for more articles and resources on this topic.
