Lindsay Lohan's Stepmom Forced Into Shelter After Arrest, Claims No Income

Kate Lohan isn’t just battling assault charges ... she’s now facing the reality of not having a place to live.

Lindsay Lohan's stepmother appeared in court Thursday for arraignment after she was arrested for allegedly attacking ex Michael Lohan ... and her attorney painted a bleak picture of what comes next.

According to her lawyer, Kate may be forced to stay in a shelter or hotel ... since a protective order bars her from contacting Michael -- the father of her two kids -- effectively cutting off her current living situation.

And it gets worse financially … her lawyer told the court Kate is currently unemployed, scraping by as an online brand ambassador -- but not making any money right now. She asked the judge to declare her indigent.

Her attorney also leaned heavily on her personal struggles -- citing ongoing medical issues, hearing loss, and even a scheduled skin cancer test -- arguing that sitting in jail could seriously jeopardize her health.

Prosecutors, however, focused on the alleged violence ... claiming Kate struck Michael and threw a serrated knife at him -- and pointing to a prior case between the ex-couple.

The judge ultimately set Kate's bond at $35K and imposed strict release conditions, including no contact with Michael, no alcohol or drugs, and no weapons.

As we reported, Kate was arrested in Texas on Wednesday after allegedly attacking Michael during a custody exchange ... with cops saying she caused injuries. She now faces a family assault charge with prior history.