How to Resolve a Divorce - Binding Arbitration

Binding arbitration is a process whereby the parties present their case to an independent decision maker who makes a decision on the disputed issues.  The decision is binding on the parties.  

Advantages to binding arbitration

1. In cases where there are tax concerns or other issues of financial propriety in the parties’ finances that cannot be presented to a judge in a court of law, binding arbitration may present a more attractive forum for the case to be resolved.
2. By retaining what is essentially a “private judge”, you and your spouse retain control over the timetable of your case. 
3. While it is an adversarial process similar to litigation, the process maintains the privacy of the parties to a greater degree that litigation in Court.

Disadvantages to binding arbitration

1. It is an adversarial process.  In this sense, it differs from collaborative law or mediation.  Rather than the parties working together towards an agreement, it is adversarial in that the parties arrive at the terms through presenting their evidence to a decision maker as adversaries, which may have a negative effect on the relationship of the parties.
2. There is no ability to compel discovery from third parties.          
3. You will lose the financial protections and right to seek Orders in the litigation as described above. 
4. You surrender the power and control to determine the terms of the decision and you lose the option of creative and more thoughtful solutions that may be better for both parties.
5. Limited rights of appeal.
6. The costs of the arbitrator.

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