Cynic11 - the insurance company would most likely never have been privy to their divorce agreement. It would have been up to the ex-wife to hold up her part of the bargain: verbal or on paper. She didn't for whatever reason, and the ex-husband is well within his rights to go after the proceeds. Very few people consult a lawyer before changing beneficiaries, as it is not a requirement by the issuance company issuing the policy.