Former State Breakup
TL;DR Excerpt: Changing your legal domicile isn’t just about choosing a new state—it’s about officially “breaking up” with your old one. To avoid tax surprises or legal disputes, you must clearly sever ties with your former state while establishing strong connections to your new one. Courts look for “concurrent intent,” meaning you must physically be in the new state and intend to make it your permanent home at the same time. Update all documents and accounts to reflect your new address, and don’t maintain lingering ties to your old state. Domicile is exclusive—you can only have one, so plan your move with care and clarity.
“It’s not you, it’s me.” Breaking up with someone isn’t easy. It takes some planning and it takes an intentional decision to end the relationship. At the end of the day, you might leave your partner heartbroken or even revengeful. Same could be said about your relationship with your former domicile state. Their revenge could take the form of an unassuming tax bill
Once you are ready to move on from your current domicile state, breaking up is a critical step. If you have plans of changing your domicile, do it right and give your current state closure. Break up with it.
Taking Domicile for Granted
If the concept of domicile is new to you, you’ve been taking it for granted. Domicile by choice has been there with you all along. Whether you knew it or not, you’ve always had a choice of domicile. Remember, domicile, as it is loosely defined, is “the place where you permanently live (home), or the place where you intend to permanently return.”
Domicile is monogamous. You can only have one domicile at a time. If you haven’t sufficiently broken up with your former state, the determination of domicile will revert back to that former state.
Moving On and Moving In
Take note that not only is your intention important, but the timing of your intention is key.
You can’t have one foot out the door and think you’ve established a new domicile. Both feet better cross that threshold, and the door closed shut behind you. If you have any connection remaining in your old state when you declare your intent to establish domicile elsewhere, that connection may defeat your case.
Along with taking actions to show your intent to establish domicile in your new state, ensure you take action to sever your ties with your current state. If you fail to do so, by virtue of default, your old state may be found as your domicile.
In order to abandon your current domicile, you must have the intent not to return to it, and you must have actual physical presence in the new state with the concurrent intent of making the new state your domicile. There are cases out there where simply having been in a state is not sufficient to establish a new domicile.
As an example, if you choose Texas as your new domicile, your one-week visit to register your vehicle and get your driver license may not be sufficient. Your intent to make Texas your domicile must be concurrent with your visit. So, before you head to Texas, ensure that all of your affairs have been taken care of and that all of your connections have been severed with your old state. Leave your old state with the intention of not coming back. Once you’re in Texas, declare it as your domicile.
Paper Trail
Sever your ties with your old state. Make sure your important documents are completely updated with your new address, and make sure you aren’t hanging on to certain accounts or certain registrations. Your paper trail should consist of nothing but connections to your new state from the date you declare your domicile.
A court may treat an account that hasn’t been updated as sufficient evidence of your continued relationship with your old state.
Concurrent Intent
Remember, you must have the intent to abandon your former state and the intent to make your new state your permanent home. The notion of “concurrent intent” can be found in some current case law. “Concurrent intent” means that your intention to make another state your domicile must be present along with your actual physical presence in that state. In other words, have the intent to domicile in the new state while you are physically present in that state.
Actual Physical Presence
If you represent yourself as a domiciliary of a state but you haven’t been there in years, you’re in trouble. For that matter, if your only visit to the state took place before you actually moved out of your old state, you need to plan a trip soon.
We can’t choose a state and declare it our domicile without taking actions to show our intent. Being physically present in a state is a potent way of showing your intent. A court may find the lack of physical presence in your new state as a lack of intent to establish a new connection with that state.
No matter how much you want to domicile in Hawaii, if you have never been there, no court will find Hawaii your domicile. Your physical presence in the state is necessary not only when you are planning to change domicile, but also once you have completely severed ties with your former state.
Fresh Start
The beauty of domicile is that you do have the freedom to choose. A fresh start with a new state is best achieved with a bit of planning. Remember, timing of your intent is as important as your intent to choose a new state. However, don’t forget to break up with your old state before you move on.