Major update in Family Arbitration process
As family courts struggle to cope with backlogs caused by Lockdown and the Covid-19 pandemic, separating or divorcing couples may be looking to methods of alternative dispute resolution, rather than the family court system. This can include seeking a route called family arbitration.
You may be familiar with family mediation, where a mediator will meet with you and your partner together. You will identify issues you cannot agree on and help you to try and reach agreement.
Mediation can and does work brilliantly but the beauty of alternative dispute resolution is that there is not a one size fits all route. With mediation there is always a risk that a dispute may be resolved in favour of the client who is in a stronger financial position.
Arbitration is another method of resolving disputes. The arbitrator will make a decision that will be final and binding between the parties, on any financial and property disputes or some child-related issues arising from family relationships.
The ruling means that separating couples can safely refer disputes over money and children to private arbitration. They know that they will be no worse off now than if the claim had been decided by a family court. As the family court backlogs increase, arbitration may seem like an ever more attractive and crucially, safe, option.
Lady Justice King said it was of the utmost importance that potential users not deterred from using arbitration, either because the outcome appeared uncertain or because there was no way of challenging it, should one of the clients consider the outcome unjust.