[WSBARP] Homestead Exemption

[Eric Nelsen]

I haven't researched that exact question but I think, each of the people can claim a homestead exemption in their specific interest in the property, which effectively doubles it to $250,000 so long as each person's interest is valued at at least $125,000.

If they aren't married and aren't in an SRDP, then they must be either complete strangers in a legal sense, or in a committed intimate relationship (CIR).

If they are "strangers," then they must hold the interest as tenants in common. If the value of an undivided one-half interest as tenant in common is worth $125,000 or more, then I think that person can claim the full homestead in their interest in the home. Same for the other person, which as a practical matter means $250,000 of the house value is protected by homestead, $125,000 for each of them.

If they are in a CIR, the answer is unresolved I think but most likely the same as for tenants in common. If the property was acquired by them prior to the beginning of the CIR, then it's presumptively held as tenants in common as above, subject possibly to an equitable lien for community-like contributions to payment of the mortgage, etc. (though I think the lien would end up being cancelled out because the community is receiving the benefit of living there).

If it was acquired during the CIR, then the property is presumptively "community-like" property and the consequence of that status for creditors is largely unresolved in case law.

However, given that you're asking specifically about interpretation of RCW 6.13.020, I don't think the statute can be read to include CIR interests. The case law for CIR makes pretty clear that statutory rights that flow from legal marital (or SRDP) status are not granted to CIR relationships. CIR is only an equitable doctrine, judge-made law, to deal with dividing property interests that have been entangled by living "as if" married without a legal marriage.

So bottom line--if they aren't married or in SRDP, I think you're looking at a doubled homestead exemption for the property, so long as each person's interest in the home can support a full $125,000 value as to that person.

You might check to make sure the property is actually held in both names, though. If only one of them is on title, then the other can't claim a homestead exemption because they don't have an ownership interest.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Mike Jacobs
Sent: Friday, February 09, 2018 11:19 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Homestead Exemption

A married couple's homestead exemption is limited to $125,000.  RCW 6.13.020.  However, if two people own the property as their residence and are not married nor registered domestic partners, does each one of them get to claim the $125,000 exemption? For my case, I hope not, but I cannot find any authority to support my desired result.  Any thoughts would be appreciated.

Sincerely,

Michael P. Jacobs
Riach Gese Jacobs PLLC
7331 196th St. SW | PO Box 1067 | Lynnwood, WA 98036
Phone: (425) 776-3191 | Fax: (425) 425-775-0406

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