If a policyholder transfers ownership of a life insurance policy to a new spouse after a divorce, who will the policy proceeds go to if the policyholder dies without making further changes?

In the context of life insurance policies, when a policyholder transfers ownership to a new spouse, the original beneficiary designation continues to hold unless it is explicitly changed by the policyholder. If the policyholder passes away without naming a new beneficiary or making any modifications to the existing beneficiary designation, the proceeds of the life insurance will go to the beneficiary named in the policy at the time of death.

In many situations, divorce results in automatic changes to beneficiary designations as part of the divorce decree, depending on state laws and policy terms. However, if the policyholder has neglected to update the beneficiary designation after the transfer of ownership to the new spouse and the prior spouse remains the designated beneficiary, the proceeds will still go to the ex-wife as listed in the policy documents.

This scenario underscores the importance of reviewing and updating beneficiary designations after significant life events such as marriage, divorce, or the birth of children to ensure that the policyholder's intentions are accurately reflected in the life insurance policy.