they get divorced, what happens to the policy?

It stays the same until she changes the beneficiary.

The policy remains in force as long as the premiums are being paid. If he passes on you will recieve the Face value as long as you are still the beneficiary

She still owns it. She decides who the beneficiary is, but she also has to pay the premiums. He can't change his mind about the policy ownership.

If it is a state in which each spouse has an interest in all the assets of the marriage, the policy is probably an asset of the marriage subject to division like all assets. Since th epolicy probably cannot be "split", one or the other spouse would get it in an equitable division of assets. If the husband is still insurable and the policy is a term insurance policy (it has no cash surrender value), it probably has no real monetary value -- if the husband is uninsurable for any reason, the policy may be of some value to him.

If the wife can show she paid for the policy with sole and separate (non-marital) assets, she probably is legally entitled to it.