A guide to arbitration: resolving relationship disputes outside of court

Navigating the end of a relationship can be challenging, and resolving disputes through the courts often adds stress, cost, and delay. Many couples about to embark on divorce and financial remedy proceedings are blissfully unaware that there are others forms of dispute resolution to help them resolve issues, such as who is to keep the family home or how pensions are to be divided. Arbitration offers a private, efficient, and flexible way to address these issues without stepping into a courtroom.

With increasing backlogs in family courts, more couples are exploring alternative methods like arbitration to achieve quicker resolutions without sacrificing fairness. Our team provides a detailed guide to understanding arbitration and its benefits.

What is arbitration?

Arbitration in the UK is a form of alternative dispute resolution (ADR) where a neutral third party, known as an arbitrator, is appointed to decide on matters arising from the breakdown of a marriage or civil partnership. Unlike court proceedings, arbitration is private, and the arbitrator’s decision is legally binding.

Who is arbitration suitable for?

Arbitration is ideal for couples in the UK who want to avoid the costs and delays of court proceedings, require a binding decision but value privacy and control over the process and have specific issues, such as financial arrangements, that need resolving.

What issues can be resolved through arbitration?

Arbitration can cover a wide range of family law disputes, including:

• Financial settlements, including property division, pensions, and investments
• Spousal maintenance
• Specific child-related matters, such as residency, schooling, or financial support

Arbitration can provide tailored solutions to meet a child’s unique needs, offering greater flexibility than courts. However, the welfare of the child remains paramount, and the arbitrator will proceed only if arbitration is considered appropriate for the case.

What cannot be arbitrated?

In the UK, arbitration cannot decide cases involving public law child protection issues (e.g., where social services are involved). Matters relating to the validity of a marriage or a divorce itself are also outside the scope of arbitration.

How does arbitration work in the UK?

• Choose a family solicitor that has experience in arbitration – Both parties should appoint specialist family lawyers who are experienced in this process. At Shakespeare Martineau we have family lawyers familiar with the process.
• Choose and Arbitrator – With the help of your solicitors both parties agree on a qualified arbitrator, typically a family law expert or retired judge. Arbitrators in the UK are often members of organisations such as the Institute of Family Law Arbitrators (IFLA).
• Sign an arbitration agreement – This agreement confirms that both parties commit to arbitration and accept the arbitrator’s decision as legally binding.
• Present your case – Parties, through their legal team, provide evidence and submissions during arbitration. The process is more flexible than court proceedings, allowing for tailored timelines and processes.
• Arbitrator’s decision – Known as an “award,” the decision is enforceable through the UK courts under the Arbitration Act 1996 if necessary.

What are the benefits of arbitration?

Privacy: Unlike court proceedings, which are sometimes public, arbitration is entirely confidential.

Speed: Cases can often be resolved within weeks or months, compared to lengthy court delays.

Cost-Effective: It is generally more affordable than contested court proceedings, as it avoids prolonged litigation.

Flexibility: Parties can choose their arbitrator, tailor the process, and schedule hearings at their convenience.

Binding Decision: The arbitrator’s award is legally enforceable, providing certainty and closure.

How does arbitration compare to mediation?

While both are ADR methods, arbitration and mediation differ significantly:

• Arbitration involves a binding decision made by an arbitrator.
• Mediation is a facilitated negotiation process, where a mediator helps parties reach a mutual agreement. If mediation fails, arbitration or court proceedings may follow.

Common misconceptions

“Arbitration Is not legally binding”

Arbitration awards are legally binding and enforceable under the Arbitration Act 1996. If necessary, the family courts can enforce compliance, providing the same level of legal authority as a court order.

“You can appeal the arbitrator’s decision if you don’t like it”

Appeals in arbitration are limited to cases where there are significant procedural irregularities or errors in law. Disagreement with the outcome alone is not grounds for an appeal.

“Arbitration Is a less serious process”

Arbitration is less formal than court proceedings, but it is equally structured and governed by legal principles. Arbitrators are highly qualified professionals, ensuring fairness and adherence to legal standards.

“You can’t change the process once it begins”

Arbitration is highly flexible. Parties can tailor the process to suit their needs, such as determining the scope of issues to be resolved, timelines, and the format of hearings. This adaptability is a key advantage over traditional litigation.

“Arbitration Is only for couples who agree on everything”

Arbitration is specifically designed for cases where couples have unresolved disputes. It provides a structured way to resolve contested issues and is particularly useful when parties cannot agree through negotiation or mediation.

“It’s expensive and not worth the cost”

While there are costs associated with arbitration, it is often more affordable than prolonged court proceedings due to its efficiency. By avoiding lengthy delays and minimising legal fees, arbitration can result in significant savings.

How do I get started with arbitration?

• Consult a member of our family law team to assess whether arbitration is appropriate for your case.
• Agree with your ex-partner to pursue arbitration.
• Select a qualified arbitrator through a recognised body, such as the Institute of Family Law Arbitrators (IFLA).
• Begin the arbitration process by signing the necessary agreements and preparing for hearings.

Arbitration is a practical and effective way to resolve disputes in family law, offering speed, privacy, and flexibility compared to traditional litigation. If you’re facing a separation or divorce and want to explore your options. For more information or tailored legal advice, contact our family law experts today.