Mediation and Arbitration

Mediation

Mediation is focused on resolving the issues faced by a separating couple, such as the division of assets, arrangements in relation to children and other such family related matters.

Mediation involves both parties meeting with a neutral, independent mediator, who will not take sides with either party, but rather work with you both to reach mutual decisions and agreement.

After the mediation, you should seek legal advice to review the proposals that have been reached in mediation and create a binding agreement.

There are a number of benefits of mediation in relation to the breakdown of a marriage including:

• Preservation of relationships through effective communication
• Focus on reaching agreement together, rather than attributing blame
• Saves time compared to going to court
• Retaining control over the process and decisions
• More cost effective than going to court

Our family department has over 50 years’ experience of family law, advising and supporting clients and their families from all over England and Wales.

If you would like to speak to a mediation specialist, please call 03333 058375 or email family@psg-law.co.uk

Arbitration

Arbitration is a flexible method for divorcing couples to resolve a dispute over finances and/or property outside court. If divorce proceedings are already being heard in court, arbitration can also be used to resolve discrete issues which may be holding up the case as a whole. Both parties appoint an independent arbitrator of their choice who hears all the evidence on both sides, understands what each wants to achieve and makes a binding decision (an arbitral award), later endorsed as a financial order by the family court. In a departure from the provisions laid down by the Arbitration Act, it is mandatory that the law of England and Wales applies to family law arbitrations. However, it must be appreciated that arbitration is an alternative to court so mediation and collaborative law should be considered first. It can succeed where other attempts at resolution have failed.

Arbitration can offer several advantages:

• Flexibility:  it can take place when, where and how the parties choose.  The arbitration can take place at the arbitrator’s place of work, or somewhere neutral, at a time which suits all involved. The parties can be present in person or the arbitration can be conducted in writing. It can also be used to resolve discrete issues which may be hindering the overall resolution of the case.
• Confidentiality: the proceedings, the decision and the award are totally confidential, which makes the process particularly attractive for high-net-worth individuals and those in the public eye.
• Speed: parties can choose when, where and by whom the arbitration is conducted, making it generally a quicker route than court which can be slow, and there is always the risk of having a case ‘bumped’ by a more urgent hearing.
• Choice: unlike court where the parties have no say over the judge allocated to their case, the arbitrator is chosen by both parties (although the IFLA will appoint one if the parties cannot agree) and he or she will oversee the process from beginning to end.

However, there are some disadvantages:

• Both parties must agree at the outset to accept the arbitrator’s decision. His or her decision is binding on both parties and cannot be subject to appeal except in exceptional circumstances (for instance if the order proves to be unworkable for whatever reason or if there was something intrinsically wrong with the arbitration process).
• The arbitration process only works if both parties participate fully and are prepared to be open and honest – if one party tries to hide assets, then going to court is likely to be the only option.

If you would like to know more, please get in touch with one of our expert family law team members today on 03333 058375, or email family@psg-law.co.uk

Read our Divorce and Family Law FAQs