Legal Definitions - state of domicile

The state of domicile refers to the state that an individual or a corporation considers their true, permanent home, even if they might be living elsewhere temporarily. For individuals, it is the place where they intend to return and reside indefinitely, demonstrated by their actions, such as where they vote, pay taxes, or maintain their primary residence. For corporations, it is simply the state where they were legally formed or incorporated.

• Example 1 (Individual with temporary work assignment): Sarah, a software engineer, accepts a two-year contract with a tech company in Washington State. She rents an apartment there but keeps her house in Oregon, where her children attend school, her car is registered, and she files her state income taxes. She fully intends to return to Oregon once her contract in Washington concludes.

  Explanation: Despite physically living and working in Washington for two years, Sarah's state of domicile remains Oregon. Her intent to return, coupled with her continued ties like home ownership, vehicle registration, and tax filings in Oregon, clearly indicate that Oregon is her permanent home, not Washington.

• Example 2 (Individual with multiple residences): A retired couple, the Millers, own a condominium in Arizona where they spend the winter months and a summer cottage in Colorado. They receive all their official mail, register to vote, and maintain their driver's licenses in Arizona, even though they spend several months each year in Colorado.

  Explanation: In this scenario, the Millers' state of domicile is Arizona. While they enjoy a seasonal residence in Colorado, their actions—such as voting registration, driver's licenses, and primary mailing address—demonstrate their intent to establish Arizona as their permanent legal home.

• Example 3 (Corporation): "Global Innovations Inc." has its headquarters, most of its employees, and primary business operations located in California. However, when the company was initially founded, its legal team chose to incorporate it in Delaware due to that state's well-established corporate laws and court system.

  Explanation: For "Global Innovations Inc.," its state of domicile is Delaware. This is because, for a corporation, domicile is determined by the state where it was legally incorporated, regardless of where its main offices or business activities are physically located.