What is the Arizona homestead exemption?

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Arizona's homestead exemption protects up to $400,000 in equity in a person's home from attachment, execution and forced sale . It covers any one of the following: the person's interest in real property in one compact body with a dwelling house in which the person resides; the person's interest in one condominium or cooperative in which the person resides; or a mobile home, park model trailer, motor home, travel trailer, fifth wheel trailer, houseboat, manufactured home or other shelter in which the person resides, plus the land on which it is located .

Who qualifies. Any person who is at least eighteen years of age, married or single, and who resides within Arizona may hold the exemption . Only one homestead exemption may be held by a married couple or a single person, and the value refers to the equity of that person or couple . If a married couple lived together in a qualifying residence and are then divorced, the total exemption allowed for that residence to either or both of them still may not exceed $400,000 .

Sale proceeds. The exemption automatically attaches to the person's interest in identifiable cash proceeds from the voluntary or involuntary sale of the property, continuing for eighteen months after the sale or until the person establishes a new homestead with the proceeds, whichever period is shorter . It does not attach to identifiable cash proceeds from refinancing the homestead property .

Annual adjustment. The $400,000 figure is not fixed: the exemption is adjusted annually beginning January 1, 2024, and each January 1 thereafter, by the increase in the cost of living as measured by the consumer price index, with the amount rounded up to the nearest $100 — so the statutory figure rises over time .