1976, August, Pg. 1059. Colorado's Homestead Exemption.

• Author: by Dolores Kopel

5 Colo.Law. 1059

Colorado Lawyer

1976.

1976, August, Pg. 1059.

Colorado's Homestead Exemption

1059Vol. 5, No. 8, Pg. 1059Colorado's Homestead Exemptionby Dolores Kopel--- "Acquiring a homestead and its preservation for the family are a matter of public interest in a free government."(fn1)

--- The Colorado State Constitution provides that "The General Assembly shall pass liberal homestead and exemption laws."(fn2)

--- Colorado's first homestead law granted a homestead exemption of $2,000 to ". . . every householder in the State of Colorado, being the head of a family. . ." from execution arising out of any debt incurred after February 1, 1868.(fn3)

--- The purpose of the statute was to secure to the householder a home for himself and his family, regardless of his financial condition, whether solvent or insolvent.(fn4)

--- "Two governing principles underlie all homestead legislation: First. The

1060beneficient design of protecting the citizen householder and his family from the dangers and miseries of destitution consequent upon business reverses or upon calamities from other causes; and, second, the sound public policy of securing the permanent habitation of the family, and cultivating the local interest, pride and affection of the individual, so essential to the stability and prosperity of a government."(fn5)--- "The preservation of the home is deemed of paramount importance."(fn6)

The above pronouncements of the Colorado Supreme Court emphasize the importance of the homestead exemption in the American heritage.

Until the enactment of an amendment on July 1, 1975, three requirements had to be met as conditions precedent to the allowance of the homestead exemption: 1) only the head of a family, or the spouse of the head of the family could claim the exemption; 2) the property had to be occupied as a home by the owner or his or her family; and 3) the declaration of homestead had to be recorded or a marginal entry had to be made with the county clerk and recorder. Now, it is necessary only that the property be occupied as a home by its owner.(fn7)

The 1975 amendment made a dramatic change in existing law. A single person is entitled to rights that were formerly available only to a person with a family. Under the prior statute, if the owner-occupant of real estate lived alone, no homestead exemption was allowable. A person residing alone was not considered a family.(fn8) The only exception occurred in situations of a widow or deserted spouse who continued to live in the home after the spouse had died or moved away from the family home.(fn9)

The new law is popularly known as the automatic homestead act...