Binding Arbitration Process
The binding arbitration process is when both parties present their case to an independent decision maker who personally resolves their disputed issues.
Binding Arbitration Process | Advantages to Binding Arbitration
- By involving what is essentially a “private judge,” the parties retain control over the process and timetable of the case.
- While it is an adversarial process similar to litigation, this process preserves the privacy of the parties to a greater degree than litigation in open court.
- In cases with tax concerns or other issues of financial propriety that the parties cannot present to a judge, binding arbitration provides a more attractive forum for resolving the case.
Binding Arbitration Process | Disadvantages to Binding Arbitration
- Unlike Collaborative law or mediation, it is an adversarial process. Rather than working together towards a mutual agreement, the parties present their evidence to an independent decision maker, as adversaries. This approach can often have a negative effect on the relationship of the parties.
- As with all alternatives to litigation, the financial disclosures made by the parties will not be subjected to the same scrutiny for falsity or omissions.
- There is no opportunity to present testimony from third parties.
- The parties will lose the financial protections and right to seek orders in the litigation as described above.
- The parties surrender the power to lay out the terms of the agreement, losing the option of designing creative and more thoughtful solutions that may benefit them both.
- There are limited rights to appeal the arbitrator’s decision.
- In addition to attorney fees, the parties must pay the arbitrator.
If you would like to learn more about the binding arbitration process or if you are in need of a New Jersey divorce arbitration lawyer, please contact our office today to schedule a free consultation.