I am selling my house and the capital gain is $175,000. There is a judgement against me worth of $50,000.

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According to the Homestead Act in Arizona I can keep 150,000 and everything else goes for the judgement. Is this true?

Answers (1)

 

Mr Frankie Adamo Esq

Answered On May 14, 2013
Yes. It is true. See ARS 33-1101. However, the "homestead exemption in identifiable cash proceeds continues for eighteen months after the date of the sale of the property or until the person establishes a new homestead with the proceeds, whichever period is shorter." ARS 33-1101(C). So, you must either spend it or use it to purchase a new home.