What is Arbitration?
If you are seeking divorce, you may be wondering to yourself, “What is arbitration, and how is it beneficial?” Our experienced New Jersey divorce lawyers can answer any questions you might have and guide you through every step of the divorce process. Contact our office today to arrange a free consultation.
What is Arbitration? | Definition
Binding arbitration is a process whereby both parties present their case to an independent decision maker who personally resolves their disputed issues. There are many 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, arbitration 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 property that the parties cannot present to a judge, binding arbitration provides a more attractive forum for resolving the case.
What is Arbitration? | Disadvantages
However, there are some disadvantages to arbitration. Unlike collaborative law or mediation, arbitration is an adversarial process. Rather than working together towards a mutual agreement, the parties present their evidence to an independent decision maker. This approach can often have negative effects on the relationship of the parties. 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 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 divorce arbitration, contact our experienced New Jersey divorce lawyers today to arrange a free consultation.