Is an LLC opened with inherited money shielded from spouse in a divorce case?
Asked in Jersey City, NJ on November 26, 2025 Last answered on April 20, 2026I want to start my business with the money that I inherited and want to do it by opening a LLC. Can my spouse make any claim on the income from that LLC in case, me and my spouse decide to get divorce in the future? I inherited the money after our wedding. I'm a NJ resident.
1 answer
The issue has nothing to do with the creation of an LLC to protect the money. If you received an inheritance of XXX and you take that money and open a bank account, savings account or even a CD and the only money deposited into that account is the inheritance monies ( and you retain the paperwork showing the receipt of the money from an inheritance), the principal is immune from distribution in a divorce. Where people screw up is when they get the inheritance monies and whether through an LLC or through a simple bank account, they mix the funds with monies earned during the marriage and even if the account is in your name alone, once you start mixing it with marital monies, it starts to lose its immune identity.
Put the money in a bank account in your name alone or in a brokerage account with a broker managing it and do not add any monies to the account from other savings or from employment and let it grow from dividends and interest income and the account remains protected from distribution.
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