• 25 November 2014

Alternatives to court in separation – Part 2: What is Arbitration?

by Macks Solicitors

Today’s (25 Nov) press release from Resolution highlights a lack of awareness amongst separating couples of the benefits of non-court based processes [1].

A survey of 4000 adults found there to be poor understanding and scepticism of non-court options. Only 51% of those surveyed said that they would use an alternative to court if they were to divorce in the future. 52% believed that non-court based options were not better for the wellbeing of the couple, and 50% believed that the wellbeing of children would not fare better with a non-court solution.

Resolution state that a lack of awareness of alternatives to court mean that couples miss out on the chance to make significant financial savings – and reduce their stress during a separation.

The organisation of family lawyers believe that cuts in legal aid provision have resulted in fewer people receiving legal advice, where they would normally have been made aware of suitable non-court options.

As part of Resolution’s Family Dispute Resolution Week (24-28 November) Macks Solicitors will be offering 30 minutes free consultation to clients who wish to discuss the alternatives to court during a separation or divorce.

Arbitration is one of these out of court processes of which there is a lack of awareness – it is an effective alternative to a lengthy court battle, but can work alongside and as well as court proceedings if necessary. It is recommended that you take legal advice before entering into an agreement with an arbitrator however, as it may still be useful to be represented by a lawyer.

Arbitration is often used if mediation efforts, where the couple reaches their own agreement, are unsuccessful. A qualified arbitrator is chosen and appointed by the separating couple, depending on the nature of their disputes. The couple decides which aspects of the disputes that the arbitrator settles, and agrees on the timetable, so an arbitration process can be much quicker than a court procedure.
Additionally, hiring an arbitrator generally costs less in total than if a dispute goes to court.

The arbitrator has the power to make a final decision on matters which the couple are unable to themselves, and direct professionals to undertake the relevant tasks involved. The decision is made after reviewing the arguments of both parties, in the similar way to that of a judge. The aim of the arbitrator throughout discussions will be to make a fair final judgement, and the judgement that is made will be legally binding, as agreed by both parties at the beginning of the process.

Elizabeth Gallagher, head of the Family department at Macks says that “Family Arbitration is relatively new and is not being widely used, particularly in the North-East. In addition to it usually being cheaper than taking a case to a final hearing at court, the parties choose when and where the arbitration takes place and which arbitrator is instructed.”

“I view it as particularly useful if there is a deadlock caused by a discrete issue that the parties are unable to agree upon. The parties could agree to use arbitration on that particular issue – once a decision is made on it hopefully they can then resolve other issues.”

[1] Resolution – press release

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