What is Arbitration?

Arbitration is a form of alternative dispute resolution and is a process where a neutral third party decides a dispute between the parties outside of court.

Parties may go to arbitration either because the Court ordered arbitration or because the parties agreed to use arbitration. Sometimes, the Court will order the parties to arbitrate the issues of personal property. In that scenario, both parties would submit their case to the arbitrator and the arbitrator would make a binding decision relative to the disposition of the personal property.

It is important to remember that once you take a dispute to arbitration, both parties are bound by the arbitration decision. Arbitration agreements can be entered into before a dispute has actually arisen that says, if a dispute should arise, it will be resolved by arbitration. However, parties may also enter into arbitration agreements after a dispute has arisen, agreeing that the dispute should be resolved through arbitration.

 

Arbitration vs. Mediation

Like mediation, arbitration is more cost effective and less time consuming than going to court with the dispute. Arbitration is also a confidential process, like mediation. However, it is important to keep in mind that arbitration is different than mediation and to know the differences between the two.

The arbitrator has the same authority to make binding decisions as a judge would. If the parties do not reach an agreement during mediation, they will likely take their dispute to the Court. However, in arbitration, the arbitrator will make a decision that both parties are legally bound to follow. Many couples choose arbitration to decide disputed issues that they can’t resolve and don’t want to leave for the Courts.

It is important to choose the right arbitrator for your specific case. Your attorney can be helpful with this task. A qualified arbitrator experienced in the same type of issues that are most contentious in your divorce may make the process more efficient.

At Clausen & Hassan, our attorneys possess a wealth of experience with arbitration. We guide our clients through this sometimes challenging process and have many satisfied clients. If you think that arbitration may be right for your divorce, contact our office today at (651) 647-0087 or reach out via email at info@clausen-hassan.com for your free consultation.