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In 2012, the Institute of Family Law Arbitrators (IFLA) launched the Family Arbitration Scheme to allow arbitration to be used in family disputes. This has resulted in more parties agreeing to use arbitration to resolve financial disputes in family matters.
Arbitration is a form of alternative dispute resolution and has traditionally been used in civil and commercial disputes. The parties sign an agreement (Form ARB1) agreeing to appoint an appropriate expert (an ‘arbitrator’) to determine their dispute and agreeing to be bound by the arbitrator’s decision. The arbitrator will look at all the evidence, including both the written and oral evidence of each party, and make a final decision. The arbitrator must comply with the IFLA’s Arbitration Rules for the Scheme and the Arbitration Act 1996.
In family matters, arbitration can be used to determine any financial or property disputes arising from family relationships, including financial claims on divorce or dissolution, property claims and financial claims relating to children. Following the arbitrator’s decision, the parties are bound to apply to the Court for an order in the same terms because the Court must give final approval to the financial arrangements. Generally, the Courts will usually approve the terms.
The benefits of arbitration are that it is quicker, cheaper and more flexible than court proceedings and provides a binding decision based on family law principles. In particular, it may be very useful where the parties have reached an agreement but there is a specific, limited issue remaining that they cannot agree on.
Parties considering arbitration can find information and the details of approved family arbitrators on the IFLA’s website at http://ifla.org.uk.
As members of Resolution, our family law team would be happy to discuss your dispute resolution options and can arrange arbitration for you. For further information or advice relating to this article please contact Claire Schneck on 01689 887828 or by email at claire.schneck@cwj.co.uk