Binding Arbitration Process

Binding Arbitration Process

Binding Arbitration Process

Binding Arbitration ProcessThe 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

  1. By involving what is essentially a “private judge,” the parties retain control over the process and timetable of the case.
  2. 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.
  3. 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.

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Binding Arbitration Process | Disadvantages to Binding Arbitration

  1. 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.
  2. 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.
  3. There is no opportunity to present testimony from third parties.
  4. The parties will lose the financial protections and right to seek orders in the litigation as described above.
  5. 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.
  6. There are limited rights to appeal the arbitrator’s decision.
  7. 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.

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