The transfer of homesteads in China is experiencing rapid development.The purpose of this study is to explore the changes in the family welfare level of rural households before and after the transfer of homesteads and their influencing factors under the background of “separation of powers”. Through research methods include investigation, empirical research and qualitative analysis, the study find that in the process of promoting rural homestead circulation, we should fully respect farmers’ wishes, understand farmers’ demands and consider the differences of local economic development.