When you add your wifes workplace to "My Places" following happens:

1) When you get within selected radius, place is mentioned
automatically when you get close (so, in a bus you get "warning")
2) When you are within selected radius, selecting "My Places" category
lists this place and you can start tracking
3) When ever you go to Tools / My Places you get list of ALL of your
places. You can start navigation or tracking from there even if you
are outside of radius

If you start tracking the place, it is not mentioned so often when you
are more than 500 meters away. Distance and direction is reported more
often when you get closer.

Basically on main screen, everything is in scope of selected radius.
When you go "sub screens", you get wider look (search, my places)

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