I was talking with one of my CPA friends and he had a client whose husband had just passed away. This was the second marriage for both and there was a substantial life insurance policy on his life. He told his wife that when he passed away, the proceeds would go to her and she would have a very comfortable retirement. Well, as you can probably guess, when he passed away and she went to the life insurance agent who reviewed the policy, they found out that the husband had never changed the beneficiary from the first wife. There is now a substantial chance that all of these proceeds will go to the first wife, not the current wife.
If you get a new model spouse, make sure you note the upgrade in your insurance policy and pension plan beneficiary designations. Unless, of course, you really want the Ex-spouse to get that cash.
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