Jane Doe vs James Balster et al

Case Number

22CV04861

Case Type

Hearing Date / Time

Fri, 08/29/2025 - 10:00

Nature of Proceedings

Motion Re Claim of "Homestead" Exemption is Invalid; Claim of Exemption

Tentative Ruling

Jane Doe v. James Balster, et al. 

Case No. 22CV04861

           

Hearing Date: August 29, 2025                                                        

HEARING:              (1)       Notice of Hearing on Claim of Exemption

                             (2)       Motion for Order Determining that Claimed Homestead Exemption is Invalid in Whole or in Part

ATTORNEYS:        For Plaintiff-Judgment Creditor Jane Doe: Eric A. Woosley, Jocelyn E. Woosley, Law Offices of Eric A. Woosley

                                    For Defendant-Judgment Debtor Cecila Balster: Luis Esparza, Esparza Law Group, P.C.

                                   

TENTATIVE RULING:

As set forth herein, the court determines that the real property subject to the claim of exemption is not wholly exempt from sale by virtue of the homestead exemption. All other issues are reserved for later determination.

Background:

On July 1, 2025, the court entered judgment in favor of plaintiff and judgment creditor Jane Doe and against defendant and judgment debtor Cecilia Balster in the principal amount of $5,000,000. An abstract of judgment was recorded on July 3, 2025. On July 16, 2025, the court issued a writ of execution on the judgment. Plaintiff-judgment creditor levied on the judgment debtor’s house located at 529 High Grove Avenue, Goleta (the Property).

Judgment debtor returned to the levying officer a claim of exemption (Claim of Exemption), that was filed on August 13.  The Claim of Exemption claims the Property is exempt under Code of Civil Procedure sections 704.720 and 704.730 as a homestead. (Claim of Exemption, ¶¶ 4-6.)

A hearing on the claim of exemption is set for this hearing date. Opposition to the claim of exemption was filed on August 8, 2025; amended opposition was filed on August 11.

On August 12, 2025, judgment creditor filed a motion for an order determining that the judgment debtor’s claim of homestead exemption is invalid in whole or in part (Motion) that is also set for this hearing.

At the hearing of an ex parte application on August 13, 2025, the court set a hearing on an Order to Show Cause Why an Order for Sale of Dwelling Should Not be Made for September 19 at 10:00 a.m.

Judgment debtor has not filed anything further with respect to the Claim of Exemption.

Analysis:

“A homestead is exempt from sale under this division to the extent provided in Section 704.800.” (Code Civ. Proc., § 704.720, subd. (a).)

“If the judgment debtor and spouse of the judgment debtor reside in separate homesteads, only the homestead of one of the spouses is exempt and only the proceeds of the exempt homestead are exempt.” (Code Civ. Proc., § 704.720, subd. (c).)

“If a judgment debtor is not currently residing in the homestead, but his or her separated or former spouse continues to reside in or exercise control over possession of the homestead, that judgment debtor continues to be entitled to an exemption under this article until entry of judgment or other legally enforceable agreement dividing the community property between the judgment debtor and the separated or former spouse, or until a later time period as specified by court order. Nothing in this subdivision shall entitle the judgment debtor to more than one exempt homestead. Notwithstanding subdivision (d) of Section 704.710, for purposes of this article, ‘spouse’ may include a separated or former spouse consistent with this subdivision.” (Code Civ. Proc., § 704.720, subd. (d).)

“The amount of the homestead exemption is the greater of the following:

“(1)      The countywide median sale price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims the exemption, not to exceed six hundred thousand dollars ($600,000).

“(2)      Three hundred thousand dollars ($300,000).” (Code Civ. Proc., § 704.730, subd. (a).)

“The amounts specified in this section shall adjust annually for inflation, beginning on January 1, 2022, based on the change in the annual California Consumer Price Index for All Urban Consumers, published by the Department of Industrial Relations, for the most recent one-year period ending on December 31 preceding the adjustment, with each adjusted amount rounded to the nearest twenty-five dollars ($25).” (Code Civ. Proc., § 704.730, subd. (b).)

Judgment creditor asserts that the 2025-adjusted homestead amount under section 704.730 is $726,700. (See Ahart, Cal. Practice Guide: Enforcing Judgments and Debts (The Rutter Group 2025) ¶¶ 6:1022-1022.1.)

“Except as provided in subdivision (b), the interest of a natural person in a dwelling may not be sold under this division to enforce a money judgment except pursuant to a court order for sale obtained under this article and the dwelling exemption shall be determined under this article.” (Code Civ. Proc., § 704.740, subd (a).)

“The burden of proof at the hearing is determined in the following manner:

“(1)      If the records of the county tax assessor indicate that there is a current homeowner’s exemption or disabled veteran’s exemption for the dwelling claimed by the judgment debtor or the judgment debtor's spouse, the judgment creditor has the burden of proof that the dwelling is not a homestead. If the records of the county tax assessor indicate that there is not a current homeowner’s exemption or disabled veteran's exemption for the dwelling claimed by the judgment debtor or the judgment debtor's spouse, the burden of proof that the dwelling is a homestead is on the person who claims that the dwelling is a homestead.

“(2)      If the application states the amount of the homestead exemption, the person claiming the homestead exemption has the burden of proof that the amount of the exemption is other than the amount stated in the application.” (Code Civ. Proc., § 704.780, subd. (a).)

“The court shall determine whether the dwelling is exempt. If the court determines that the dwelling is exempt, the court shall determine the amount of the homestead exemption and the fair market value of the dwelling. The court shall make an order for sale of the dwelling subject to the homestead exemption, unless the court determines that the sale of the dwelling would not be likely to produce a bid sufficient to satisfy any part of the amount due on the judgment pursuant to Section 704.800. The order for sale of the dwelling subject to the homestead exemption shall specify the amount of the proceeds of the sale that is to be distributed to each person having a lien or encumbrance on the dwelling and shall include the name and address of each such person. Subject to the provisions of this article, the sale is governed by Article 6 (commencing with Section 701.510) of Chapter 3. If the court determines that the dwelling is not exempt, the court shall make an order for sale of the property in the manner provided in Article 6 (commencing with Section 701.510) of Chapter 3.” (Code Civ. Proc., § 704.780, subd. (b).)

Judgment creditor presents evidence that the fair market value of the Property is $1,900,000, that the Property is a single family residence, that the Property is currently owned by the judgment debtor whose given address is the same as the Property. No evidence has been presented by the judgment debtor.

On the evidence presented, the court determines that the homestead exemption generally applies to the Property (and is valid to that extent), and that the fair market value of the Property is shown to exceed the homestead exemption. The court therefore determines that the Property is not categorically exempt from sale by virtue of the homestead exemption. All other issues are reserved for the hearing on the OSC re order for sale.