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Facts

  • The case involves a dispute between Norman Martinez (Husband) and Beatrice Vigil-Martinez (Wife) regarding the division of Husband's retirement benefits following their divorce. The district court had previously granted Wife a lien against Husband's retirement account as security for a money judgment related to the sale of community real estate. After their divorce, Husband's debts were discharged in bankruptcy, where Wife was listed as a creditor holding a secured claim. The issue arose when Wife sought to enforce her lien against Husband's retirement account as he neared retirement (paras 1-4).

Procedural History

  • District Court, August 26, 2002: Ordered division of retirement accounts and granted Wife a lien against Husband's retirement account for a money judgment (para 2).
  • United States Bankruptcy Court for the District of New Mexico, May 19, 2003: Granted Husband a discharge of his debt, with an explanation that creditors may enforce valid liens not avoided or eliminated in the bankruptcy case (para 3).
  • District Court, June 23, 2008: Entered an order dividing retirement benefits submitted by Wife, which was later rejected by PERA due to non-compliance with its requirements (para 4).
  • District Court, October 31, 2011: Entered an amended order dividing the PERA retirement benefits, enforcing Wife's lien against Husband's retirement account (para 6).

Parties' Submissions

  • Husband: Argued that the district court lacked jurisdiction to secure his debt to Wife by a lien against his retirement account, claimed the account was exempt from Wife's claim as a creditor, argued the 2008 district court order was a modification of the divorce decree without jurisdiction, and claimed he was deprived of due process. He also argued that his debt to Wife was discharged in the bankruptcy proceeding (para 7).
  • Wife: Sought to enforce her lien against Husband's retirement account pursuant to the divorce decree, arguing that the lien survived the bankruptcy discharge and that the district court had jurisdiction to enforce the lien (paras 6, 21).

Legal Issues

  • Whether the district court had jurisdiction to secure Husband's debt to Wife by a lien against his retirement account.
  • Whether Husband's retirement account was exempt from Wife's claim as a creditor.
  • Whether the district court had jurisdiction to modify the divorce decree.
  • Whether Husband was deprived of due process by the court's 2008 order.
  • Whether Husband's debt to Wife was discharged in the bankruptcy proceeding.

Disposition

  • The Court of Appeals affirmed the district court's amended order dividing Husband's retirement benefits and enforcing Wife's lien against his retirement account (para 7).

Reasons

  • Per Jonathan B. Sutin (Roderick T. Kennedy, Chief Judge, and Linda M. Vanzi, Judge, concurring): The court held that Husband did not timely appeal from the divorce decree and thus could not challenge the lien provision. It found that the district court did not modify the divorce decree but acted to enforce Wife's lien. The court also determined that Husband's due process rights were not violated by the 2008 order since it was rejected by PERA and did not lead to a deprivation of his property. Finally, the court concluded that Husband's debt to Wife was listed as a secured claim in the bankruptcy case, and Husband conceded that Wife's lien survived the bankruptcy, meaning the district court was not prohibited from enforcing Wife's lien (paras 8-21).
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