What is arbitration?
Matrimonial arbitration can be used to resolve multiple or single family law issues which the parties agree by contract to submit to the arbitration process. Some parties are bound by the terms of prior contracts, such as premarital agreements, to submit their marital disputes to arbitration. Others may choose to do so, even after litigation is pending, either as an alternative to mandatory alternative dispute resolution forms required in their judicial district or simply because it is a format which appeals to them.
Arbitration is a distinct form of ADR. The arbitration process begins with an arbitration agreement which is a contract governing the terms and process of the arbitration itself. While the purpose of mediation is to employ a neutral party to facilitate the parties reaching an agreement about a contested issue, and collaboration requires a commitment by the parties and their lawyers to cooperatively reach an out of court settlement, arbitration is a process in which the parties agree to present one or more disputed issues to a trained, unbiased third party who hears the evidence, applies the law and renders a decision. Each party has a right to an attorney and the attorneys and the parties agree on the ground rules for the hearing, including, for example, the presentation of evidence, the scope of testimony, the scheduling of hearings and the allocation of the expenses of the arbitration.
What are the benefits of arbitration?
The benefits of arbitration are many. The process is confidential and private--unless it is provided for, no record is kept of the proceedings. Each party has some control over the process in that they select their decision maker by mutual agreement. By contract, the parties can determine how evidence will be presented, what rules of court will apply, what issues will be decided and whether or not the arbitrator's decision will be subject to judicial review or appeal.
The parties have a lot of flexibility. Instead of judicial assignment where the decision-maker is assigned randomly by the clerk of court, one can select the arbitrator(s), the site where the arbitration will take place and the schedule, all of which allow for flexibility and maximum convenience.
Going through the court system is time-consuming, inconvenient and expensive. Arbitration is an expedient process which avoids courtroom and calendar delays and can reduce legal fees. Finally, the arbitrator's decision, unless explicitly made subject to appellate review, is final and binding on the parties.
