Lisa and the Law

Arizona law protects homesteads of business owners

Posted on September 23, 2025

Arizona law protects homeowners from creditors by providing an exemption of $425,200 in equity for a primary residence. Effective September 26, 2025 that protection will be extended to all types of mobile vehicles used as primary residences (including watercraft). If you are a business owner or even just a homeowner, you should never transfer your home ownership to an LLC or other business entity as you lose this protection. Having your home owned by your living revocable family trust does not eliminate this protection as trusts are not separate business entities in the State of Arizona.

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The information provided in this website is meant only as a general description of the current laws as of the date of the writing. It is not meant to be an exhaustive discussion of all the nuances of the law and is intended to be only an overview. Many issues may appear simpler than they are, and an individual should always contact an attorney to obtain a complete, accurate interpretation of the law given the individual's particular circumstances. Thompson Law Group, P.C. makes no representations as to how the law would affect a particular situation and intends only to illustrate areas of concern and give general information.

Published: September 23, 2025 , Last Updated: September 30, 2025