In a Decision – Rosen v. Rosen, >> the Court Held:
Property acquired through inheritance was not subject to equitable distribution nor was any income derived from it.
Defendant and his brothers converted deceased father's estate into a family LLC which distributed interest to them. While defendant sometimes co-mingled the distributions he received from the LLC into joint accounts during the marriage, plaintiff never acquired any ownership interest in the LLC and it remained an asset owned by defendant and his brothers. The divorce judgment ordered that plaintiff receive 55 percent of the distributions that defendant received from the LLC. Defendant argued that since his interest in the LLC derived from an asset acquired through inheritance, his interest in and income from the LLC could not be equitably distributed to plaintiff. The court agreed.