Legal Question in Insurance Law in Texas

That is a function of two things:

1. The named beneficiary in the insurance contract and

2. The divorce decree.

Can she change the beneficiary? Yes. However, if she does so in violation of a court order, she can get sued.

An unfortunately common example is a spouse is ordered to take out a life insurance policy on himself, with the beneficiary being the minor children, pursuant to a divorce decree. The spouse then changes the beneficiary, in violation of the court decree, from his children to his girlfriend. The spouse dies, the girlfriend tries to collect and the whole thing winds up in court.

Your situation is a little different, in that the spouse isn't taking out the insurance policy on herself, but on another. You didn't say if there's a court order stating where the proceeds are to go. If there is nothing in the court order, then the insurance contract controls, and the owner of the policy (I assume the wife owns the policy) can change the beneficiary as she sees fit.

Dave

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