Divorce Decrees and Beneficiary Designations

An article published by Advisor One titled "Beneficiary Designations and Divorce Decrees: A Cautionary Tale" should serve as a cautionary tale to individuals contemplating a divorce after a life of intertwined finances with their spouses.  The article discusses a case of a couple that entered into a separation agreement and property-settlement agreement.  However, the wife, who had a life insurance policy failed to remove her estranged husband as a beneficiary.  As a result, when the wife passed away, her estranged husband as well as her mother and son filed a claim for the benefits.  The insurance company sided with the estranged husband.  The family brought an unsuccessful suit in district court.  Subsequent appeal to the appellate court ended with the same result.