Wednesday, April 11, 2012

The Arbitration Alternative

The Financial Times has reported on an arbitration scheme that is attracting interest from super-rich couples. The scheme allows the divorcing couple to argue over their financial settlement in private rather than in the full glare of the media.
 
Arbitration is another alternative to court proceedings. It is a process where an independent third party considers the arguments of the divorcing couple and makes a decision that resolves the dispute. The arbitrator is independent. In most cases the arbitrator's decision is legally binding on both sides. Any decision can be enforced in court if necessary.

As is the case with mediation and collaborative law, the divorcing couple must be willing to enter into the process. Arbitration takes place in private. Only the couple are present with the arbitrator. 

Arbitration has a number of advantages. It is intended to be less expensive, less formal, faster and more flexible than court, so the rules of evidence are not as strict. The divorcing couple can usually have a say in how they want the hearing to be conducted. 
 
However, arbitration is not suitable for everyone and specialist advice should be sought as to what is going to be the best method of reaching a resolution of financial matters.
 
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