Legal Definitions - domiciliation

Domiciliation refers to the act or process of establishing one's legal domicile. A domicile is more than just a place where someone lives; it is their permanent home, the place where they intend to return whenever they are absent. It is the jurisdiction (like a state or country) that a person or entity considers their principal and permanent residence, and where they have the strongest legal ties. Therefore, domiciliation involves taking the necessary steps to demonstrate this intent and establish those legal connections.

Here are some examples to illustrate domiciliation:

• Example 1: An Individual Moving to a New State

  After accepting a long-term job offer, Maria sells her house in California, purchases a new home in Colorado, registers her car in Colorado, obtains a Colorado driver's license, and registers to vote in her new county. She also enrolls her children in local Colorado schools and opens bank accounts with a Colorado address.

  Explanation: Maria's actions collectively demonstrate her clear intent to make Colorado her permanent home. By severing ties with California and establishing new, permanent connections in Colorado, she is undertaking the process of domiciliation in Colorado.

• Example 2: A Business Establishing its Principal Office

  A technology startup, "Quantum Innovations," initially incorporated in Delaware, decides to move its entire executive team, research and development facilities, and primary operational staff to North Carolina to be closer to a major university research park. They lease a large office building, hire local employees, and register their business to operate as a foreign corporation in North Carolina, designating it as their principal place of business.

  Explanation: Quantum Innovations is engaging in domiciliation in North Carolina. While its state of incorporation might remain Delaware, by moving its core operations and establishing a significant physical and operational presence with the intent for it to be its primary base, the company is establishing its legal domicile in North Carolina.

• Example 3: An Expatriate Returning Home

  After living and working in Germany for 20 years, Dr. Schmidt decides to retire and move back to his home country, Canada. He sells his property in Germany, buys a condominium in Toronto, opens Canadian bank accounts, renews his Canadian passport, and applies for provincial health insurance. He also transfers his pension to a Canadian financial institution.

  Explanation: Dr. Schmidt's actions signify his domiciliation back in Canada. By divesting from his life abroad and establishing new, permanent ties in Canada, he is demonstrating his intent to make Canada his permanent home once again, thereby re-establishing his legal domicile there.