For the sake of completeness, there is another approach wrap() or wrapAll() mentioned in this article. So the OP’s question could possibly be solved by this (that is, assuming the <div id="destination" /> does not yet exist, the following approach will create such a wrapper from scratch – the OP was not clear about whether the wrapper already exists or not):

$("#source").wrap('<div id="destination" />')
// or
$(".source").wrapAll('<div id="destination" />')

It sounds promising. However, when I was trying to do $("[id^=row]").wrapAll("<fieldset></fieldset>") on multiple nested structure like this:

<div id="row1">
    <label>Name</label>
    <input ...>
</div>

It correctly wraps those <div>...</div> and <input>...</input> BUT SOMEHOW LEAVES OUT the <label>...</label>. So I ended up use the explicit $("row1").append("#a_predefined_fieldset") instead. So, YMMV.