Arbitration

What is arbitration?

Arbitration is a private dispute resolution procedure which provides an alternative to court proceedings. In arbitration, parties jointly appoint an arbitrator (a specially trained, independent third party) to resolve the dispute. This decision will be final and binding between the parties.

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What are the benefits of arbitration?

Arbitration is becoming an increasingly popular alternative for couples to resolve disputes and agree a financial settlement, particularly in high-net-worth divorces. With the backlog and delays in the family court, arbitration has become more attractive thanks to a number of benefits:

• Speed - arbitration often provides a faster resolution for parties, as the timetable is subject only to the parties’ agreements and the availability of their arbitrator, rather than the delays common in the family court.
• Cost - arbitration can be a more cost-effective way for parties to come to an agreement. They will have to pay their legal fees, the fees of any arbitrator, and the cost of any venue hired, but parties generally have greater control of how far costs can go.
• Confidentiality - the arbitration process is protected by strict confidentiality rules which are not present in normal court proceedings. As such, arbitration is a favourable option for high-profile individuals seeking to minimise any media scrutiny.
• Flexibility - parties can tailor the arbitration process to suit them, such as by deciding whether it should be conducted in person, remotely, or on paper. They can also determine the specific issues they wish the arbitrator to settle.
• Autonomy and control - parties must agree on an arbitrator but this is a choice which is not afforded in family court. Having the ability to select an arbitraor, who will oversee the process from beginning to end, and even meet them beforehand can provide additional reassurance.
• Certainty - by agreeing to arbitrate, parties agree that the arbitrator’s award will be final and binding.
• Reduced stress - many parties find arbitration a less stressful and adversarial process compared to financial remedy proceedings in the family court.

Choosing an arbitrator

Both parties must agree on who is appointed as an arbitrator. Arbitrators are generally specialist family solicitors, barristers or retired judges. 

Can you appeal an arbitration award?

It is possible to an appeal an arbitration award, but only on very limited grounds. Parties cannot appeal simply because they disagree or dislike the arbitrator’s decision. An appeal can only be made if there were significant procedural errors.

What is the difference between mediation and arbitration? 

Mediation and arbitration are both types of alternative dispute resolution, but they differ in their methods. In mediation, a neutral mediator assists the parties in negotiating and reaching their own agreement; the mediator facilitates the process but does not decide the outcome. Conversely, in arbitration, the arbitrator listens to both sides of the dispute and then makes a legally binding decision. 

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