SB 308, as amended, Wieckowski. Debtor exemptions.
Existing law prohibits the seller or holder of a conditional sale contract for a motor vehicle from accelerating the maturity of any part or all of the amount due under the contract or repossessing the vehicle in the absence of default in the performance of any of the buyer’s obligations under the contract.
This bill would provide that neither the act of filing a bankruptcy petition by the buyer or other individual liable on the contract nor the status of either of those persons as a debtor in bankruptcy constitutes a default in the performance of any of the buyer’s obligations under the contract and neither may be used as a basis for accelerating the maturity of any part or all of the amount due under the contract or for repossessing the motor vehicle.
Existing law identifies various types of property of a judgment debtor that are exempt from the enforcement of a money judgment. Existing law provides that property described in statute as exempt may be claimed within the time and in the manner prescribed in the applicable enforcement procedure, and property described in statute as exempt without making a claim is not subject to any procedure for enforcement of a money judgment. These general exemptions are available to a debtor in a federal bankruptcy case, whether a money judgment is being enforced by execution sale or other procedure, unless the debtor elects certain alternative exemptions.
Existing law requires the Judicial Council to, every 3 years, adjust the amount of the exemptions applicable to exempt property based on the change in the annual California Consumer Price Index for All Urban Consumers, and to prepare conforming forms for those adjustments.
This bill would increase the statutory amounts of various exemptions to reflect the amounts of the exemptions as adjusted by the Judicial Council effective April 1, 2013.
Existing law authorizes a husband and wife who jointly file a bankruptcy petition to jointly elect to utilize the general exemptions or the alternative exemptions, but not both. The general exemptions are applicable if a bankruptcy petition is filed individually, and not jointly, for a husband or a wife, except that the husband and wife may jointly waive in writing their right to claim, during the period the case commenced by filing the petition is pending, the general exemptions and instead elect to utilize the alternative exemptions.
This bill would provide that a joint waiver is not required from a debtor who is separated from his or her spouse as of the date the bankruptcy petition is filed.
Existing law includes an alternative exemption for the debtor’s right to receive a payment under a stock bonus, pension, profit-sharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, unless all of several specified conditions apply, including that the plan or contract does not qualify under specified provisions of the federal Internal Revenue Code of 1986.
This bill would provide that a plan or contract covered by this alternative exemption would be exempt even if it did not qualify under the specified provisions of the federal Internal Revenue Code of 1986 so long as the sole basis for the failure to qualify is a technical defect.
Existing law includes alternative exemptions for the debtor’s right to receive, or property that is traceable to, a payment on account of the wrongful death of an individual of whom the debtor was a dependent and a payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent on the date of that individual’s death.
This bill would make these exemptions applicable, as well, to payments regarding an individual of whom the debtor was a spouse.
Existing law includes an alternative exemption for the debtor’s right to receive, or property that is traceable to, a payment on account of personal bodily injury of the debtor or an individual of whom the debtor is a dependent. Existing law sets this amount as $25,575, as adjusted by the Judicial Council.
This bill would make this exemption applicable, as well, to a payment on account of personal bodily injury of the spouse of the debtor.
Existing law includes an alternative exemption for the debtor’s right to receive, or property that is traceable to, a payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent to the extent reasonably necessary for the support of the debtor and a dependent of the debtor.
This bill would make this exemption applicable, as well, to a payment regarding an individual of whom the debtor is or was a spouse, and would provide that the exemption applies to the extent reasonably necessary for the support of the debtor and a spouse or dependent of the debtor.
Existing law provides that vacation credits, as defined, are exempt from enforcement of a money judgment without making a claim.
This bill would delete the definition of “vacation credits” set forth in these provisions and expand this general exemption to also include accrued or unused vacation pay, sick leave, and family leave. The bill also would add an alternative exemption for the debtor’s right to receive these expanded assets.
Existing law exempts any combination of aggregate equity in motor vehicles, the proceeds of an execution sale of a motor vehicle, and the proceeds of insurance or other indemnification for the loss, damage, or destruction of a motor vehicle. Existing law sets this amount of this exemption, as adjusted by the Judicial Council, at $2,900. Existing law includes an alternative exemption for up to $5,100, as adjusted by the Judicial Council, of the debtor’s interest in one or more motor vehicles.
This bill would increase the amount of the general and alternative exemption for motor vehicle equity to $6,000, and make conforming changes.
This bill would provide that the aggregate interest of a debtor who is engaged in business, not to exceedbegin delete ($5,000),end deletebegin insert
$5,000end insert in cash or deposit accounts, accounts receivable, and inventory of the business is exempt.
Existing law includes an alternative exemption for the debtor’s right to receive alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
This bill would provide that these assets are exempt, thereby adding a general exemption matching the existing alternative exemption.
Existing law provides that all amounts held, controlled, or in process of distribution by a private retirement plan, for the payment of benefits as an annuity, pension, retirement allowance, disability payment, or death benefit from a private retirement plan are exempt. Existing law defines “private retirement plan” to include self-employed retirement plans and individual retirement annuities or accounts provided for in the federal Internal Revenue Code of 1986, including individual retirement accounts qualified under specified provisions of that code.
This bill would expand this exemption to also include individual retirement accounts that do not qualify under those specified provisions on the basis of a technical defect alone.
Existing law provides that various causes of action and awards of damages or settlements arising out of those actions are exempt to varying extent, as specified.
This bill would provide that a cause of action arising out of or regarding the violation of any law relating to the judgment debtor’s employment is exempt without making a claim, except as provided in specified statutory provisions, and an award of damages or a settlement arising out of or regarding the violation of any law relating to the judgment debtor’s employment is exempt to the extent necessary for the support of the judgment debtor and the spouse and dependents of the judgment debtor. The bill also would add identical alternative exemptions in this regard.
Existing law provides that the proceeds of sale or of insurance or other indemnification for damage or destruction of a homestead, the proceeds received as compensation for a homestead acquired for public use, or the proceeds from a voluntary sale of a declared homestead, are exempt in the amount of the homestead exemption provided in a specified statute for a period of 6 months after the time the proceeds are actually received by the judgment debtor, except as provided.
This bill would delete the 6-month limitation on these exemptions, thereby making these proceeds exempt indefinitely, and make conforming changes.
Existing law provides that a specified portion of equity in a homestead, as defined, is exempt from execution to satisfy a judgment debt and prescribes that the amount of the homestead exemption is either $75,000, $100,000, or $175,000, depending on certain characteristics of the homestead’s residents.
This bill would instead provide that the homestead exemption may not exceedbegin delete $700,000 unless the homestead is no greater than 320 acres and is used primarily for agricultural purposes, in which case the homestead exemption would be unlimitedend deletebegin insert $300,000end insert.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 2983.3 of the Civil Code is amended to
2read:
(a) (1) In the absence of default in the performance
4of any of the buyer’s obligations under the contract, the seller or
5holder may not accelerate the maturity of any part or all of the
6amount due thereunder or repossess the motor vehicle.
7(2) Neither the act of filing a petition commencing a case for
8bankruptcy under Title 11 of the United States Code by the buyer
9or other individual liable on the contract nor the status of either of
10those persons as a debtor in bankruptcy constitutes a default in the
11performance of any of the buyer’s obligations under the contract,
12and neither may be used as a basis for accelerating the maturity
13of
any part or all of the amount due under the contract or for
14repossessing the motor vehicle.
15(b) If after default by the buyer, the seller or holder repossesses
16or voluntarily accepts surrender of the motor vehicle, any person
17liable on the contract shall have a right to reinstate the contract
18and the seller or holder shall not accelerate the maturity of any
19part or all of the contract prior to expiration of the right to reinstate,
20unless the seller or holder reasonably and in good faith determines
21that any of the following has occurred:
P6 1(1) The buyer or any other person liable on the contract by
2omission or commission intentionally provided false or misleading
3information of material importance on his or her credit application.
4(2) The buyer, any other person liable on the contract, or any
5permissive user in possession of the motor vehicle, in order to
6avoid repossession has concealed the motor vehicle or removed it
7from the state.
8(3) The buyer, any other person liable on the contract, or any
9permissive user in possession of the motor vehicle, has committed
10or threatens to commit acts of destruction, or has failed to take
11care of the motor vehicle in a reasonable manner, so that the motor
12vehicle has become substantially impaired in value, or the buyer,
13any other person liable on the contract, or any nonoccasional
14permissive user in possession of the motor vehicle has failed to
15take care of the motor vehicle in a reasonable manner, so that the
16motor vehicle may become substantially impaired in value.
17(4) The
buyer or any other person liable on the contract has
18committed, attempted to commit, or threatened to commit criminal
19acts of violence or bodily harm against an agent, employee, or
20officer of the seller or holder in connection with the seller’s or
21holder’s repossession of or attempt to repossess the motor vehicle.
22(5) The buyer has knowingly used the motor vehicle, or has
23knowingly permitted it to be used, in connection with the
24commission of a criminal offense, other than an infraction, as a
25consequence of which the motor vehicle has been seized by a
26federal, state, or local agency or authority pursuant to federal, state,
27or local law.
28(6) The motor vehicle has been seized by a federal, state, or
29local public agency or authority pursuant to (A) Section 1324 of
30Title 8 of the
United States Code or Part 274 of Title 8 of the Code
31of Federal Regulations, (B) Section 881 of Title 21 of the United
32States Code or Part 9 of Title 28 of the Code of Federal
33Regulations, or (C) other federal, state, or local law, including
34regulations, and, pursuant to that other law, the seizing authority,
35as a precondition to the return of the motor vehicle to the seller or
36holder, prohibits the return of the motor vehicle to the buyer or
37other person liable on the contract or any third person claiming
38the motor vehicle by or through them or otherwise effects or
39requires the termination of the property rights in the motor vehicle
P7 1of the buyer or other person liable on the contract or claimants by
2or through them.
3(c) Exercise of the right to reinstate the contract shall be limited
4to once in any 12-month period and twice during the
term of the
5contract.
6(d) The provisions of this subdivision cover the method by
7which a contract shall be reinstated with respect to curing events
8of default which were a ground for repossession or occurred
9subsequent to repossession:
10(1) Where the default is the result of the buyer’s failure to make
11any payment due under the contract, the buyer or any other person
12liable on the contract shall make the defaulted payments and pay
13any applicable delinquency charges.
14(2) Where the default is the result of the buyer’s failure to keep
15and maintain the motor vehicle free from all encumbrances and
16liens of every kind, the buyer or any other person liable on the
17contract shall either satisfy all encumbrances and liens or, in
the
18event the seller or holder satisfies the encumbrances and liens, the
19buyer or any other person liable on the contract shall reimburse
20the seller or holder for all reasonable costs and expenses incurred
21therefor.
22(3) Where the default is the result of the buyer’s failure to keep
23and maintain insurance on the motor vehicle, the buyer or any
24other person liable on the contract shall either obtain the insurance
25or, in the event the seller or holder has obtained the insurance, the
26buyer or any other person liable on the contract shall reimburse
27the seller or holder for premiums paid and all reasonable costs and
28expenses, including, but not limited to, any finance charge in
29connection with the premiums permitted by Section 2982.8,
30incurred therefor.
31(4) Where the default
is the result of the buyer’s failure to
32perform any other obligation under the contract, unless the seller
33or holder has made a good faith determination that the default is
34so substantial as to be incurable, the buyer or any other person
35liable on the contract shall either cure the default or, if the seller
36or holder has performed the obligation, reimburse the seller or
37holder for all reasonable costs and expenses incurred in connection
38therewith.
39(5) Additionally, the buyer or any other person liable on the
40contract shall, in all cases, reimburse the seller or holder for all
P8 1reasonable and necessary collection and repossession costs and
2fees incurred, including attorney’s fees and legal expenses
3expended in retaking and holding the vehicle.
4(e) If the seller or holder denies
the right to reinstatement under
5subdivision (b) or paragraph (4) of subdivision (d), the seller or
6holder shall have the burden of proof that the denial was justified
7in that it was reasonable and made in good faith. If the seller or
8holder fails to sustain the burden of proof, the seller or holder shall
9not be entitled to a deficiency, but it shall not be presumed that
10the buyer is entitled to damages by reason of the failure of the
11
seller or holder to sustain the burden of proof.
12(f) This section shall not apply to a loan made by a lender
13licensed under Division 9 (commencing with Section 22000) of
14the Financial Code.
Section 703.140 of the Code of Civil Procedure is
16amended to read:
(a) In a case under Title 11 of the United States Code,
18all of the exemptions provided by this chapter, including the
19homestead exemption, other than the provisions of subdivision (b)
20are applicable regardless of whether there is a money judgment
21against the debtor or whether a money judgment is being enforced
22by execution sale or any other procedure, but the exemptions
23provided by subdivision (b) may be elected in lieu of all other
24exemptions provided by this chapter, as follows:
25(1) If a husband and wife are joined in the petition, they jointly
26may elect to utilize the applicable exemption provisions of this
27chapter other than the provisions of subdivision (b), or to utilize
28the
applicable exemptions set forth in subdivision (b), but not both.
29(2) If the petition is filed individually, and not jointly, for a
30husband or a wife, the exemptions provided by this chapter other
31than the provisions of subdivision (b) are applicable, except that,
32if both the husband and the wife effectively waive in writing the
33right to claim, during the period the case commenced by filing the
34petition is pending, the exemptions provided by the applicable
35exemption provisions of this chapter, other than subdivision (b),
36in any case commenced by filing a petition for either of them under
37Title 11 of the United States Code, then they may elect to instead
38utilize the applicable exemptions set forth in subdivision (b). A
39waiver is not required, however, from a debtor who is separated
P9 1from his or her spouse as of the date the petition commencing
the
2case under Title 11 of the United States Code is filed.
3(3) If the petition is filed for an unmarried person, that person
4may elect to utilize the applicable exemption provisions of this
5chapter other than subdivision (b), or to utilize the applicable
6exemptions set forth in subdivision (b), but not both.
7(b) The following exemptions may be elected as provided in
8subdivision (a):
9(1) The debtor’s aggregate interest, not to exceed twenty-five
10thousand five hundred seventy-five dollars ($25,575) in value, in
11real property or personal property that the debtor or a dependent
12of the debtor uses as a residence, in a cooperative that owns
13property that the debtor or a dependent of the debtor uses as a
14residence.
15(2) The debtor’s interest, not to exceed six thousand dollars
16($6,000) in value, in one or more motor vehicles.
17(3) The debtor’s interest, not to exceed six hundred fifty dollars
18($650) in value in any particular item, in household furnishings,
19household goods, wearing apparel, appliances, books, animals,
20crops, or musical instruments, that are held primarily for the
21personal, family, or household use of the debtor or a dependent of
22the debtor.
23(4) The debtor’s aggregate interest, not to exceed one thousand
24five hundred twenty-five dollars ($1,525) in value, in jewelry held
25primarily for the personal, family, or household use of the debtor
26or a dependent of the debtor.
27(5) The debtor’s aggregate interest, not to exceed in value one
28thousand three hundred fifty dollars ($1,350) plus any unused
29amount of the exemption provided under paragraph (1), in any
30property.
31(6) The debtor’s aggregate interest, not to exceed seven thousand
32six hundred twenty-five dollars ($7,625) in value, in any
33implements, professional books, or tools of the trade of the debtor
34or the trade of a dependent of the debtor.
35(7) Any unmatured life insurance contract owned by the debtor,
36other than a credit life insurance contract.
37(8) The debtor’s aggregate interest, not to exceed in value
38thirteen thousand six hundred seventy-five dollars ($13,675), in
39any accrued dividend or interest under, or
loan value of, any
40unmatured life insurance contract owned by the debtor under which
P10 1the insured is the debtor or an individual of whom the debtor is a
2dependent.
3(9) Professionally prescribed health aids for the debtor or a
4dependent of the debtor.
5(10) The debtor’s right to receive any of the following:
6(A) A social security benefit, unemployment compensation, or
7a local public assistance benefit.
8(B) A veterans’ benefit.
9(C) A disability, illness, or unemployment benefit.
10(D) Alimony, support, or separate maintenance, to the extent
11reasonably
necessary for the support of the debtor and any
12dependent of the debtor.
13(E) A payment under a stock bonus, pension, profit-sharing,
14annuity, or similar plan or contract on account of illness, disability,
15death, age, or length of service, to the extent reasonably necessary
16for the support of the debtor and any dependent of the debtor,
17unless all of the following apply:
18(i) That plan or contract was established by or under the auspices
19of an insider that employed the debtor at the time the debtor’s
20rights under the plan or contract arose.
21(ii) The payment is on account of age or length of service.
22(iii) That plan or contract does not qualify under Section 401(a),
23403(a),
403(b), 408, or 408A of the Internal Revenue Code of
241986, as amended, on a basis other than a technical defect alone.
25(F) Vacation credits or accrued, or unused, vacation pay, sick
26leave, or family leave.
27(11) The debtor’s right to receive, or property that is traceable
28to, any of the following:
29(A) An award under a crime victim’s reparation law.
30(B) A payment on account of the wrongful death of an individual
31of whom the debtor was a spouse or dependent, to the extent
32reasonably necessary for the support of the debtor and any
33dependent of the debtor.
34(C) A payment under a life insurance contract that
insured the
35life of an individual of whom the debtor was a spouse or dependent
36on the date of that individual’s death, to the extent reasonably
37necessary for the support of the debtor and any dependent of the
38debtor.
39(D) A payment, not to exceed twenty-five thousand five hundred
40seventy-five dollars ($25,575), on account of personal bodily injury
P11 1of the debtor, the spouse of the debtor, or an individual of whom
2the debtor is a dependent.
3(E) A payment in compensation of loss of future earnings of
4the debtor or an individual of whom the debtor is or was a spouse
5or dependent, to the extent reasonably necessary for the support
6of the debtor and a spouse or dependent of the debtor.
7(12) (A) Except
as provided in Article 5 (commencing with
8Section 708.410) of Chapter 6, a cause of action arising out of or
9regarding the violation of any law relating to the judgment debtor’s
10employment is exempt without making a claim.
11(B) An award of damages from or a settlement arising out of or
12regarding the violation of any law relating to the judgment debtor’s
13employment is exempt to the extent necessary for the support of
14the judgment debtor and the spouse and dependents of the judgment
15debtor.
Section 704.010 of the Code of Civil Procedure is
17amended to read:
(a) Any combination of the following is exempt in
19the amount of six thousand dollars ($6,000):
20(1) The aggregate equity in motor vehicles.
21(2) The proceeds of an execution sale of a motor vehicle.
22(3) The proceeds of insurance or other indemnification for the
23loss, damage, or destruction of a motor vehicle.
24(b) Proceeds exempt under subdivision (a) are exempt for a
25period of 90 days after the time the proceeds are actually received
26by the judgment debtor.
27(c) For the purpose of determining the equity, the fair market
28value of a motor vehicle shall be determined by reference to used
29car price guides customarily used by California automobile dealers
30unless the motor vehicle is not listed in such price guides.
31(d) If the judgment debtor has only one motor vehicle and it is
32sold at an execution sale, the proceeds of the execution sale are
33exempt in the amount of six thousand dollars ($6,000) without
34making a claim. The levying officer shall consult and may rely
35upon the records of the Department of Motor Vehicles in
36determining whether the judgment debtor has only one motor
37vehicle. In the case covered by this subdivision, the exemption
38provided by subdivision (a) is not available.
Section 704.085 is added to the Code of Civil
40Procedure, to read:
The aggregate interest of a debtor who is engaged in
2a business, not to exceed five thousand dollars ($5,000), in cash
3or deposit accounts, accounts receivable, and inventory of the
4business is exempt.
Section 704.111 is added to the Code of Civil
6Procedure, to read:
Alimony, support, and separate maintenance, to the
8extent reasonably necessary for the support of the debtor and any
9dependent of the debtor, are exempt.
Section 704.113 of the Code of Civil Procedure is
11amended to read:
(a) All vacation credits or accrued, or unused,
13vacation pay, sick leave, or family leave is exempt without making
14a claim.
15(b) Amounts paid periodically or as a lump sum representing
16vacation credits are subject to any earnings withholding order
17served under Chapter 5 (commencing with Section 706.010) or
18any earnings assignment order for support as defined in Section
19706.011 and are exempt to the same extent as earnings of a
20judgment debtor.
Section 704.115 of the Code of Civil Procedure is
22amended to read:
(a) As used in this section, “private retirement plan”
24means:
25(1) Private retirement plans, including, but not limited to, union
26retirement plans.
27(2) Profit-sharing plans designed and used for retirement
28purposes.
29(3) Self-employed retirement plans and individual retirement
30annuities or accounts provided for in the Internal Revenue Code
31of 1986, as amended, including individual retirement accounts
32qualified under Section 408 or 408A of that code and accounts
33that do not qualify on the basis of a technical defect alone,
to the
34extent the amounts held in the plans, annuities, or accounts do not
35exceed the maximum amounts exempt from federal income taxation
36under that code.
37(b) All amounts held, controlled, or in process of distribution
38by a private retirement plan, for the payment of benefits as an
39annuity, pension, retirement allowance, disability payment, or
40death benefit from a private retirement plan are exempt.
P13 1(c) Notwithstanding subdivision (b), where an amount described
2in subdivision (b) becomes payable to a person and is sought to
3be applied to the satisfaction of a judgment for child, family, or
4spousal support against that person:
5(1) Except as provided in paragraph (2), the amount is exempt
6only to the extent that the
court determines under subdivision (c)
7of Section 703.070.
8(2) If the amount sought to be applied to the satisfaction of the
9judgment is payable periodically, the amount payable is subject
10to an earnings assignment order for support as defined in Section
11706.011 or any other applicable enforcement procedure, but the
12amount to be withheld pursuant to the assignment order or other
13procedure shall not exceed the amount permitted to be withheld
14on an earnings withholding order for support under Section
15706.052.
16(d) After payment, the amounts described in subdivision (b)
17and all contributions and interest thereon returned to any member
18of a private retirement plan are exempt.
19(e) Notwithstanding subdivisions (b) and (d),
except as provided
20in subdivision (f), the amounts described in paragraph (3) of
21subdivision (a) are exempt only to the extent necessary to provide
22for the support of the judgment debtor when the judgment debtor
23retires and for the support of the spouse and dependents of the
24judgment debtor, taking into account all resources that are likely
25to be available for the support of the judgment debtor when the
26judgment debtor retires. In determining the amount to be exempt
27under this subdivision, the court shall allow the judgment debtor
28such additional amount as is necessary to pay any federal and state
29income taxes payable as a result of the applying of an amount
30described in paragraph (3) of subdivision (a) to the satisfaction of
31the money judgment.
32(f) Where the amounts described in paragraph (3) of subdivision
33(a) are payable
periodically, the amount of the periodic payment
34that may be applied to the satisfaction of a money judgment is the
35amount that may be withheld from a like amount of earnings under
36Chapter 5 (commencing with Section 706.010). To the extent a
37lump-sum distribution from an individual retirement account is
38treated differently from a periodic distribution under this
39subdivision, any lump-sum distribution from an account qualified
40under Section 408A of the Internal Revenue Code shall be treated
P14 1the same as a lump-sum distribution from an account qualified
2under Section 408 of the Internal Revenue Code for purposes of
3determining whether any of that payment may be applied to the
4satisfaction of a money judgment.
Section 704.165 is added to the Code of Civil
6Procedure, to read:
(a) Except as provided in Article 5 (commencing
8with Section 708.410) of Chapter 6, a cause of action arising out
9of or regarding the violation of any law relating to the judgment
10debtor’s employment is exempt without making a claim.
11(b) An award of damages from or a settlement arising out of or
12regarding the violation of any law relating to the judgment debtor’s
13employment is exempt to the extent necessary for the support of
14the judgment debtor and the spouse and dependents of the judgment
15debtor.
Section 704.720 of the Code of Civil Procedure is
17amended to read:
(a) A homestead is exempt from sale under this
19division to the extent provided in Section 704.800.
20(b) If a homestead is sold under this division or is damaged or
21destroyed or is acquired for public use, the proceeds of sale or of
22insurance or other indemnification for damage or destruction of
23the homestead or the proceeds received as compensation for a
24homestead acquired for public use are exempt in the amount of
25the homestead exemption provided in Section 704.730.
26(c) If the judgment debtor and spouse of the judgment debtor
27reside in separate homesteads, only the homestead of one of the
28spouses
is exempt and only the proceeds of the exempt homestead
29are exempt.
30(d) If a judgment debtor is not currently residing in the
31homestead, but his or her separated or former spouse continues to
32reside in or exercise control over possession of the homestead, that
33judgment debtor continues to be entitled to an exemption under
34this article until entry of judgment or other legally enforceable
35
agreement dividing the community property between the judgment
36debtor and the separated or former spouse, or until a later time
37period as specified by court order. Nothing in this subdivision shall
38entitle the judgment debtor to more than one exempt homestead.
39Notwithstanding subdivision (d) of Section 704.710, for purposes
P15 1of this article, “spouse” may include a separated or former spouse
2consistent with this subdivision.
Section 704.730 of the Code of Civil Procedure is
4amended to read:
(a) begin delete(1)end deletebegin delete end deletebegin deleteExcept as provided in paragraph (2), theend deletebegin insertTheend insert
6 amount of the homestead exemption shall not exceed begin deletesevenend deletebegin insert threeend insert
7 hundred thousand dollarsbegin delete ($700,000)end deletebegin insert ($300,000)end insert.
8(2) If a homestead is no greater than 320 acres and is primarily
9used for agricultural purposes, the homestead exemption is
10unlimited.
11(b) Notwithstanding any other provision of this section, the
12combined homestead exemptions of spouses on the same judgment
13shall not exceed the amount specified in subdivision (a), regardless
14of whether the spouses are jointly obligated on the judgment and
15regardless of whether the homestead consists of community or
16separate property or both. Notwithstanding any other provision of
17this article, if both spouses are entitled to a homestead exemption,
18the exemption of proceeds of the homestead shall be apportioned
19between the spouses on the basis of their proportionate interests
20in the homestead.
Section 704.960 of the Code of Civil Procedure is
22amended to read:
If a declared homestead is voluntarily sold, the
24proceeds of sale are exempt in the amount provided by Section
25704.730.
O
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