Arbitration Arbitration

An arbitrator has a power to impose a final decision on matters in a similar way that a Judge in a Court can do. As such, you and your former spouse agree in advance that you will accept the arbitrator's decision. This means you can achieve a final outcome without asking a judge to decide your case through the court process.

The arbitrator considers the evidence provided by both parties before reaching a decision that is intended to be fair and appropriate in the circumstances.

What financial issues can arbitration resolve?

Arbitration can be used to resolve many of the financial questions that arise following divorce or the end of a civil partnership.

These may include:

• How savings and investments should be divided.
• What happens to the family home.
• Pension sharing.
• Business interests.
• Cryptocurrency and other digital assets.
• Spousal maintenance (financial support paid by one former spouse to the other).
• Other financial claims arising from separation.

Arbitration is particularly useful where only one or two issues remain in dispute and both parties want a final decision without lengthy court proceedings. It can be used however to resolve an entire dispute in the same way a Court can.

How is arbitration different from going to court?

The main difference is that arbitration is private and generally offers much greater flexibility.

With court proceedings, you must follow the court's timetable, which can sometimes involve significant delays before hearings take place.

With arbitration, both parties can usually choose a suitable date, agree practical arrangements and often resolve matters much more quickly. The parties can also select the identity of the arbitrator, meaning the arbitrator can be chosen based on the issues at hand.

Another important difference is privacy. Arbitration hearings are confidential, meaning your financial affairs are discussed in a private setting rather than through the court system, which can in some circumstances become public record.

The main negative is that the parties will need to fund the cost of the arbitrator.

At Preston Redman, we help clients weigh up the advantages and disadvantages of arbitration based on their individual circumstances.

Is arbitration legally binding?

Yes. Once the arbitrator has made their decision, it is generally intended to be final and binding on both parties.

In most divorce financial cases, the decision is then presented to the court so it can be approved as part of a financial order. This provides legal certainty and helps ensure that the agreement is enforceable.

Because the outcome is designed to be final, it is important to obtain legal advice before entering into arbitration.

Is arbitration quicker than court?

In many cases, yes. Court proceedings can sometimes take many months, particularly where courts are dealing with high numbers of cases.

Arbitration often allows disputes to be resolved more quickly because the timetable is agreed by the parties and the arbitrator, rather than depending on court availability.

A quicker resolution can also reduce uncertainty, allowing both people to move forward with greater confidence.

Is arbitration suitable for every divorce?

Not always. Arbitration works best where both parties are willing to engage with the process and provide full financial disclosure. This means being open and honest about income, savings, property, pensions and other assets.

There are some situations where court proceedings may still be more appropriate, particularly if there are concerns about hidden assets, a lack of financial disclosure or other issues requiring the court's powers. Arbitration has no ability to impose sanctions for any non disclosure or poor litigation conduct, compared to a Court.

At Preston Redman, we will discuss your circumstances carefully and advise whether arbitration is likely to be the most suitable option.

What are the benefits of arbitration?

Many people choose arbitration because it offers:

• A faster decision than many court cases.
• Greater privacy and confidentiality.
• Flexibility over dates and arrangements.
• The opportunity to appoint an experienced family law arbitrator.
• A process focused on resolving financial disputes efficiently.

For many separating couples, reducing conflict and avoiding unnecessary delay can make a significant difference during what is already a challenging time.

Preston Redman is committed to helping clients find practical solutions that minimise stress while protecting their long-term financial interests.

Do I need a solicitor for arbitration?

It is important to obtain independent legal advice for any arbitration.

A solicitor can help you advise on the suitability of arbitration, assist in appointing an arbitrator, prepare your financial information, explain your legal position, present your case clearly and advise you during the arbitration as well the arbitrator's decision.

At Preston Redman, we support clients throughout the arbitration process, ensuring they understand their options and feel confident at every stage.