What is arbitration?
Arbitration is a method of out-of-court dispute resolution. Similarly to a Judge in the traditional court process, an arbitrator reviews the facts of the case, considers the issues, hears evidence where appropriate and makes a decision binding on the parties.
All matters discussed in arbitration are completely confidential, and in many cases, arbitration can work out significantly cheaper than pursuing a financial settlement through the Family Court.
Arbitration can be used to resolve disputes about arrangements for children and financial matters.
How does arbitration work?
Arbitration can be tailored to your particular circumstances. It may be that you are not able to resolve one particular issue, you can ask an arbitrator to decide on just that issue.
Alternatively, you may ask the arbitrator to determine all of the issues in your case. The arbitration process broadly mirrors the court process with disclosure, negotiation and a binding decision being made if an agreement cannot be reached along the way.
At the end of your arbitration, the arbitrator will make a legally-binding arbitration award. Your solicitor will submit the award to the Family Court to make an order, to ensure that it is enforceable in the future.
Only in very exceptional circumstances will the Family Court decline an arbitration decision.
Why should I choose arbitration?
Arbitration has several benefits, such as time and cost, compared to the traditional court process. At the moment, matters can take up to 18 months to resolve.
Arbitration can take place in a time frame to suit you and at a venue which is convenient for everyone. You are not reliant on the court listing system and not subject to delays which are out of your hands. Although arbitration follows a similar process to court proceedings, it is more bespoke and offers a great deal of flexibility.
You can maintain control over the process and tailor it to your needs. If there are any queries or difficulties during the arbitration process, the arbitrator can be contacted and the query dealt with quickly to allow progress to be made.
Is arbitration more expensive?
Not necessarily. Although you will have to pay an arbitrator, the process can be a more cost-effective way to reach a resolution. In the traditional court process, if the matter proceeds to a final hearing, you would have to provide financial disclosure before the first hearing, update it before the second hearing and update it again before the final hearing.
This in itself can be a costly exercise. In arbitration, disclosure only has to be provided once. The process is also much shorter from start to finish than the court process, which means the costs are far less.
What other options are there?
There are several other ways to resolve matters which do not involve the court, for example, mediation and collaborative law.