Arbitration is a method of dispute resolution which becoming increasingly popular in respect of matrimonial property and finances on divorce. Issues in respect of children can also be decided via arbitration.
Arbitration is a voluntary process of dispute resolution whereby the parties’ dispute is decided by an impartial and independent third party (an arbitrator) instead of a judge. The parties agree to cooperate with the process and may agree to obtain a Consent Order reflecting the arbitrator’s decision which can then be implemented. The arbitrator is chosen by or on behalf of the parties, perhaps for their expertise in a specific area, and their decision can be agreed to be binding. Arbitrators are supervised and trained by the Institute of Family Law Arbitrators.
Arbitration is intended to be binding (i.e. a Consent Order will be obtained to allow implementation of the arbitrator’s decision). Alternatively, non-binding arbitration allows the parties an indication of what the outcome of their matter is likely to be – similar to the Court’s process of giving an indication which is intended to encourage constructive negotiations.
Arbitration can be used at any stage in a dispute but is particularly attractive in some of the following circumstances:
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- Cases where parties want a swift resolution;
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- Cases where confidentiality is important to the parties;
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- Issues where legal fees are likely to exceed the amounts in dispute;
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- Specific issues which are hindering the overall process of a case;
The success of arbitration depends on the willingness of everyone involved so may not be suitable in cases where a party, or any necessary witnesses or third parties, are obstructive or un-cooperative. Similarly, arbitration is unlikely to be appropriate in cases where there are issues with non-disclosure, or where any injunctions etc. may be necessary.
Please telephone our London, Aylesbury, Marlow or High Wycombe offices for more information.