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Alternative Dispute Resolution Options for Divorce in New Jersey-Part IV: Arbitration
Filed Under Alternative Roads in Family Law, Divorce & Separation, Family Law Basics, Mediation & Collaboration in Family Law
Mediation and arbitration, whether in a divorce context or not, are often confused and for good reason. Both are similar in many ways. Like mediation, arbitration is a confidential, cost-effective and expeditious alternative to traditional divorce litigation and courts of law. It requires spouses to voluntarily submit their divorce matter to a neutral third party, an arbitrator, who ultimately renders a final ruling on settlement. As in mediation, parties, usually agree on the selection of an arbitrator, who may be a matrimonial lawyer or a former judge but, in any case, are experienced and familiar with the many nuances of matrimonial law. In situations where spouses cannot agree on an arbitrator, a judge, if it’s a lawsuit, will often select one from a list submitted by the parties. The cost of arbitration can be shared or divided by the parties. It is often recommended that this issue be resolved prior to arbitration. The similarities between mediation and arbitration, however, end there.
The role of an arbitrator is similar to that of a judge without the formalities and limitations of the courtroom. The arbitration process is usually less formal than a trial in that parties can agree on what rules of evidence are to apply. Unlike a mediator, an arbitrator has power to impose a settlement on the parties over their objections, if the parties so choose. This is why choosing an experienced arbitrator is so important. Generally, the parties agree to be bound by an arbitrator’s ruling prior to arbitration unless they agree that the decision will be non-binding. If the parties agree to be bound by an arbitrator’s ruling, then the arbitration is considered binding and is virtually non-appealable, except in instances where one party can prove that the arbitrator was biased, committed a gross error of law, or exceeded his or her authority. On the other hand, non-binding arbitration may be more appealable. However, if the end result of an appealed arbitration decision is the same as the initial decision or more favorable to the other spouse, then the court may order the party who appealed to pay the other’s legal fees.
Spouses pursuing arbitration are encouraged to retain legal representation because unlike mediation, an arbitrator is not particularly focused on facilitating dialogue between the parties in an effort to resolve their differences. Instead, an arbitrator hears testimony, accepts evidence and renders a decision based on his or her assessment of the parties’ positions. Attorneys are permitted to attend arbitration sessions, sometimes helping to conduct them as quasi-trials, and can ensure that their client’s best interests are advanced before an arbitrator. If binding, once an arbitrator renders a ruling, it is submitted to the court for filing by way of court order. Arbitration can also be used in conjunction with the courts. In some divorce cases, a disagreement over a particular issue can derail the process entirely. In such instances, an arbitrator may be called to help settle the matter in order to move the divorce case along.
For those interested in arbitration, the American Arbitration Association and National Arbitration Forum provide valuable information and other resources.
Posted by Jason Medina,
Medina, Martinez & Castroll, LLC
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