In the case of Ridgway v. Ridgway, 1981, the U.S. Supreme Court dealt with a dispute over life insurance proceeds. The decedent had designated his wife as beneficiary on his military group life insurance policy but later changed it to his children from a previous marriage after their divorce and remarriage to another woman. After he was killed in action, both parties claimed entitlement to the benefits under different state laws - Maine's revocation-upon-divorce statute and federal law governing servicemen's group life insurance policies respectively. The court ruled that federal law preempts state law in this matter; therefore, despite any contrary provisions of Maine law or even an agreement between spouses at time of divorce, the designation made by serviceman on his policy controls distribution of proceeds upon death. This decision upheld Congress' intent for uniform administration and prompt payment of benefits without entanglement in conflicting legal claims under various state laws.

In the dissenting opinion for Ridgway v. Ridgway, Justice Thurgood Marshall argued that the majority's decision failed to properly balance federal and state interests. He contended that while it was important to respect Congress' intent in protecting servicemen's insurance benefits from creditors, this should not override a state court’s ability to enforce domestic relations law or its power over marital property distribution upon divorce. Justice Marshall believed that the deceased serviceman had intended his life insurance proceeds as part of his child support obligations; therefore, these funds should be available to fulfill those responsibilities after his death. The justice also criticized the majority for failing to consider how their ruling could potentially incentivize insured servicemen facing financial difficulties or contentious divorces to change beneficiaries at will without any legal consequences.