Montana Homestead Laws

The famous federal Homestead Act allowed settlers to claim hundreds of acres in Montana. Those days may be gone, but the Montana homestead exemption under the Montana Code Annotated allows a homeowner to exempt the equity in their primary residence from creditor claims and forced sales. A Montanan’s primary residence can consist of any “dwelling house” as long as it is the owner’s principal residence. It can include:

• Family residence
• Mobile home
• Manufactured home

Trailers and boats are not covered by the homestead exemption, as they are considered “recreational vehicles.” The exemption includes outbuildings and “appurtenances,” such as wells.

Homestead Declaration

Property owners must file a Montana homestead declaration form before they can claim the exemption (MCA § 70-32-105). The declaration is filed in the County Clerk’s office where the property is located.

A homestead declaration can be reversed with a “declaration of abandonment.” This is a legal document that divests the owner or owners of homestead rights.

Value of Property Exempted

Montana statute sets the value of the property exempted at $425,828 in equity as of 2026. This value increases by 4% annually and can be tracked in the MontGuides published by Montana State University. Homeowners should consult a bankruptcy attorney before filing to ensure they have the correct amount in their petition. If you have recently sold the property, the exemption applies to the proceeds of the sale for up to 18 months if you use the proceeds to purchase a new primary residence.

Exceptions to Exemptions

The homestead exemption protects your home from unsecured creditors. It does not protect the real estate against secured loans such as:

• Mortgages
• Contractor and mechanic’s liens
• Tax liens and judgments

If the homestead is seized and sold, bids must exceed the maximum value of the exemption. After a sale, the creditor is entitled only to the amount sufficient to settle the debt. The claimant must receive any remainder.

Get Legal Advice From a Montana Bankruptcy Attorney

Montana’s homestead laws impact property taxes and sales. They’re also subject to change by the Montana legislature. If you are considering filing bankruptcy and need to protect your home equity, consider consulting a Montana bankruptcy attorney for the most current information and values on Montana property and laws.