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Facts

  • After their divorce, a veteran waived his military retirement pay to receive a disability benefit, which resulted in his ex-spouse no longer receiving a portion of his retirement pay as previously agreed. This waiver occurred after the issuance of the Mansell decision but before the Howell decision by the U.S. Supreme Court (paras 3, 6-7).

Procedural History

  • District Court: The court ruled in favor of the ex-spouse, ordering the veteran to compensate her for the waived portion of the military retirement pay (para 9).
  • Court of Appeals: Affirmed the district court's decision, finding that Howell does not apply retroactively in New Mexico, thus allowing the ex-spouse to be compensated (para 10).

Parties' Submissions

  • Veteran: Argued that his election to receive a disability benefit in lieu of military retired pay, thus reducing the ex-spouse's benefits, was permissible under federal law (para 8).
  • Ex-Spouse: Contended that the veteran's decision to waive his retirement pay for a disability benefit, effectively reducing her share, was prohibited under New Mexico law. She sought enforcement of their agreement for her to receive a portion of his military retirement pay (para 8).

Legal Issues

  • Whether the Howell decision applies retroactively to this case, thereby precluding the ex-spouse from receiving a portion of the veteran's retirement pay after he waived it for a disability benefit (paras 3, 11-16).

Disposition

  • The Supreme Court of the State of New Mexico reversed the Court of Appeals' decision, holding that Howell must be given full retroactive effect in New Mexico, and remanded for further proceedings consistent with this opinion (para 21).

Reasons

  • Per Thomson, J., with Michael E. Vigil, C.J., Barbara J. Vigil, J., and C. Shannon Bacon, J., concurring:
    The Uniformed Services Former Spouses’ Protection Act allows states to treat veterans’ disposable retired pay as divisible property upon divorce but excludes amounts waived for disability benefits from this divisible property (paras 1-2).
    The Howell decision clarified that states could not treat the waived portion of retirement pay for disability benefits as divisible community property, even if the waiver occurs long after the divorce (para 2).
    The Court of Appeals erred in determining that Howell does not apply retroactively in New Mexico, as federal law, governed by the Supremacy Clause, mandates that new rules of federal law announced by the U.S. Supreme Court apply retroactively (paras 5, 11-16).
    While Howell and federal law preempt state law from dividing waived military retirement pay for disability benefits, New Mexico courts may still consider reductions in value when calculating the need for spousal support, focusing on familial obligations rather than the division of community property (paras 17-20).
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