New Jersey Veterans and Military Spouses Asset Protection Act

P.L.2025, c.326, the New Jersey Veterans and Military Spouses Asset Protection Act, approved January 20, 2026, is the only homestead exemption in New Jersey law. Its own findings say "The State currently does not provide a homestead exemption". Who. A "veteran", meaning a person honorably discharged from any branch of the Armed Forces including the National Guard and reserves; a "service member" currently serving in any of them; and a "military spouse", the spouse or surviving spouse of either (N.J.S.A. 2A:17-17.3). There is no period of service and no disability test. A general discharge under honorable conditions is not mentioned; the statute says "honorably discharged". The homes. N.J.S.A. 2A:17-17.4 exempts the primary residence and one secondary residence, a seasonal, family or retirement home, "from levy, execution, attachment, or forced sale for the payment of debts, judgments, or other claims or creditors", "without a limitation of value", if ownership of both is recorded with the county clerk. Property held jointly with the military spouse is fully protected for both, and the protection continues for a surviving spouse who keeps ownership. Everything else. N.J.S.A. 2A:17-17.5 exempts "retirement accounts, pensions, disability benefits, and veterans' benefits" from creditor claims, and one motor vehicle per household up to a fair market value of $30,000. What it does not stop. Mortgages and other voluntary liens, taxes and other debts owed to government, and judgments arising from the debtor's willful misconduct, fraud or crime. Any levy or sale in breach of the act is void, and it is in addition to the federal Servicemembers Civil Relief Act. When it applies. The act took effect on approval, is retroactive to January 1, 2025, and applies only to debts incurred or claims filed on or after that date. It does not disturb a final judgment entered before January 20, 2026. In bankruptcy, a New Jersey debtor who uses state exemptions instead of the federal ones can now protect a home that the federal homestead exemption would not.