Despite the pleas of the current Mrs. Hillman, the court had to do it: they gave it all – every penny – to the ex-wife named as beneficiary.
Unlike a retirement account, the singular purpose of a life insurance policy is to provide financial protection to those depending on your life and income. This would seem to exclude a 10 years divorced spouse, absent an alimony requirement in the divorce decree.
Bottom line: the beneficiary form is a matter of contract between the policy owner and the insurance company. The courts can do nothing but enforce that contract.
Are your beneficiary forms ready to be followed to the letter? How will the rest of your estate keep out of the court system?
