Divorce Arbitration and Family Arbitration Explained 

Divorce arbitration or family arbitration is a type of non-court dispute resolution (NCDR) whereby an independent and qualified person helps family members and divorcing parties to resolve disagreements privately outside of the court system. Arbitration in divorce and family matters is governed by the Arbitration Act 1996, which sets out how the process should be handled in a fair way and results in an outcome that can be legally enforced. Unlike other forms of non-court dispute resolution methods (e.g. mediation), arbitrators act with the authority of a judge. Once an agreement is reached (called making an award), either party can then apply to have it made into a Consent Order by the courts, making it legally enforceable. 

The use of divorce arbitration is growing in the United Kingdom, especially among high-net-worth individuals who wish to prioritise privacy and speed in resolving their divorce disputes. Indeed, according to Family Law Arbitrators (IFLA), there were over 130 arbitrations for divorce financial settlements in 2024 compared to 89 in 2023.

Divorce arbitration can be used for a range of types of disputes, including : 

• Divorce financial settlements, e.g. where one spouse wants spousal maintenance or a share of the matrimonial assets – under the Matrimonial Causes Act 1973. 

• Financial relief claims in England by a spouse who obtained a divorce overseas and did not receive a fair financial settlement – under the Matrimonial and Family Proceedings Act 1984 

• Claims by parents for financial provision (such as housing or education costs) from the other parent for the benefit of their child, outside of the Child Maintenance Service – under the Children Act 1989 

• A financial remedy claim following the dissolution of a civil partnership, including division of jointly owned property and pension sharing – under the Civil Partnership Act 2004 

Arbitration cannot generally be used to decide on divorces, adoption, care proceedings, court of protection matters, safeguarding concerns, or where the court has sole legal jurisdiction.  

If you and your partner are considering arbitration to resolve your matter, you will both need to jointly choose an arbitrator. You are not automatically assigned one. 

While it is not mandatory to have a divorce lawyer for a family law arbitration or divorce arbitration, you may benefit from doing so if: 

• Your financial issues are complex or involve business assets, pensions, overseas property, or a nuptial agreement 

• There is a history of abuse, conflict or imbalance of power between you and the other party 

• You are unclear about your legal rights or what a fair outcome would look like 

• The arbitration involves child arrangements, and you need help preparing your case 

• You want your own support to negotiate a settlement or review the arbitrator’s award before applying to court for approval 

Ultimately, a divorce law solicitor will ensure that your interests are protected and that any agreement is fair, realistic, and legally valid.  

Divorce / family arbitration process  

Divorce / family arbitration typically involves the following steps: 

• Choosing an arbitrator 

• Initiating the arbitration process 

• Hearings 

• Decision 

• Court approval 

Choosing an Arbitrator 

Before starting the process, the disputing parties can either choose their own arbitrator from the register or ask IFLA to choose one for them. In the latter scenario, the parties will be asked to submit a shortlist and ask IFLA to pick from it. This is done by submitting one of the following forms: 

• Form ARB1FS for financial matters 

• Form ARB1CS for children-related matters 

Initiating the arbitration process 

Once selected, the arbitrator will review the application and contact the parties to arrange an initial meeting. The parties involved will be asked to review the arbitrator’s terms and conditions and agree to them before proceeding. The process is discussed at the start; directions may be given or a directions hearing arranged. The parties are responsible for their own legal fees, any expert costs, and the arbitrator’s fees. All costs and procedures must be agreed upon at the outset. After the arbitrator accepts the appointment, the arbitration formally begins. 

Hearings 

Depending on the case, it may be necessary to have a single hearing or multiple. It may even be possible to reach an outcome without a hearing just on the facts presented on paper. Where necessary, the arbitrator will hear any evidence the parties to the dispute provide in addition to that of any experts.

Decision 

A binding decision is made in the form of a written award (for financial matters) or written determination (for child matters). The award or determination will set out any reasoning, calculations, and the final decision. 

Court approval 

The parties must submit the decision to the court for approval in the form of a Consent Order. Once approved by the court, the agreement reached will be legally enforceable. 

Advantages of divorce arbitration 

The advantages of divorce arbitration include: 

• A much faster process of going through the courts 

• Clear terms and conditions agreed to from the outset 

• Keeps the dispute private and confidential 

• Much less formal and stressful than going through the courts 

• Still leads to a legally binding decision 

• Can help to preserve the relationship between the parties 

• You can choose the arbitrator 

Disadvantages of divorce arbitration

The disadvantages of divorce arbitration include: 

• You will need to pay the fees of the arbitrator 

• Requires the approval of the court in order for the decision to be enforceable 

• Cannot be used in all situations 

• The decision reached by the arbitrator is binding on the parties – hence, it may be difficult to challenge the decision.

FAQ about family law arbitration and divorce arbitration