Family law arbitration lets you settle a financial or child dispute privately and quickly without a final court hearing. You and your former partner appoint a qualified arbitrator. That person reviews the evidence from both sides and makes a decision that binds you both. In financial cases the decision is called an Award. In children cases it is called a Determination. The court then turns that decision into a legally binding order.
This guide explains how arbitration works in England and Wales. It covers what you can arbitrate. It sets out the real cost. It walks through the process step by step. It explains your right to challenge a decision after the case of Haley v Haley. It also explains when arbitration is the wrong choice.
What is family law arbitration?
Family law arbitration is a form of private dispute resolution. You appoint an independent arbitrator to decide your case instead of a judge. The arbitrator is usually a senior solicitor or barrister or a retired judge with deep family law expertise. Both of you agree in advance to be bound by the outcome.
The scheme in England and Wales is run by the Institute of Family Law Arbitrators. The IFLA was set up by Resolution the Family Law Bar Association and the Chartered Institute of Arbitrators. Every IFLA arbitrator has trained and qualified through the Chartered Institute of Arbitrators. The legal framework sits under the Arbitration Act 1996.
There are two separate schemes. The Financial Scheme covers money and property. The Children Scheme covers arrangements for children. An arbitrator can be qualified in one scheme or both.
What disputes can arbitration resolve?
Arbitration covers most of the issues that bring separating couples to the family court.
Under the Financial Scheme an arbitrator can decide how to divide money and assets on divorce. They can decide what happens to the family home. They can deal with pensions maintenance and lump sums. They can resolve property disputes between unmarried couples under TOLATA. They can decide financial provision for children under Schedule 1 of the Children Act 1989.
Under the Children Scheme an arbitrator can decide where a child lives. They can decide how much time a child spends with each parent. They can resolve specific disputes such as schooling or a proposed move within England and Wales.
Arbitration cannot do everything. It cannot grant the divorce itself. It cannot make a decision that removes a child from the jurisdiction without the proper safeguards. It is not the route where a child is at risk of harm and the court must intervene. The arbitrator will always want to be satisfied that any child arrangement is safe.
How is arbitration different from mediation and court?
Arbitration differs from mediation because the arbitrator makes a binding decision while a mediator only helps you reach your own agreement. People often confuse the two. They are not the same.
In mediation a neutral mediator helps you reach your own agreement. The mediator does not decide anything. If you cannot agree you leave with nothing settled.
In arbitration the arbitrator makes the decision for you. You are guaranteed an outcome at the end. This is the key difference. Arbitration gives you certainty where mediation has run out of road.
Court also gives you a decision. The difference is control. In court you take the judge you are given on the date the court can offer. In arbitration you choose the decision maker and you agree the timetable. You can also keep the whole process private.
Why do separating couples choose arbitration?
Arbitration offers four clear advantages over the court process.
You choose the arbitrator. You pick a specialist who suits your case. You are not assigned a judge at random. This gives confidence in the person deciding your future.
It is much faster. A hearing can be arranged within weeks. A contested financial case in court often takes 12 to 24 months. The arbitrator handles your case from start to finish so there is no delay waiting for judicial availability.
It is private. The media are not entitled to attend an arbitration hearing. Court hearings are increasingly open to reporting. For anyone who values confidentiality this matters.
It is flexible. You agree the timetable and the venue. You can deal with one narrow issue or the whole dispute. The hearing can be a paper review a remote hearing or a face to face hearing.
There is also a wider reason to consider it now. Since April 2024 the family court expects you to make a genuine attempt at non court dispute resolution before and during proceedings. The court can pause your case to let you try. It can also take your refusal to engage into account when it decides who pays the costs. Arbitration counts as non court dispute resolution.
What does family arbitration cost?
Family arbitration usually costs between £1,000 and £5,000 plus VAT for the arbitrator on top of your own legal costs. The total sits between mediation and a full court battle. The main expenses are set out below.
| Cost | Typical range | Notes |
|---|---|---|
| Arbitrator fee for an all issues case | £1,000 to £5,000 plus VAT | Higher for complex or high value cases |
| Arbitrator hourly rate | £150 to £400 plus VAT per hour | Used where work is billed by time |
| Your own legal costs | Varies widely | Usually each person pays their own |
| Expert fees | Varies | Shared equally as a rule. For example a pension actuary or a surveyor |
| Venue hire | Varies | Only for an in person hearing away from the arbitrator’s chambers |
Most couples share the arbitrator’s fee equally. The arbitrator does have a discretion under the rules to order one party to pay more where that party has behaved badly.
Put this in context. A contested financial remedy hearing in court can cost £15,000 to £50,000 per person or more once you add barristers and experts. A faster private process often costs far less overall even though you pay the arbitrator directly. The saving comes from speed. A case resolved in months rather than years burns through far fewer hours of legal time.
How does the arbitration process work step by step?
The family arbitration process has six steps. You agree to arbitrate. You choose the arbitrator. You hold a first appointment. You attend the hearing. The arbitrator gives a decision. The court turns that decision into an order. Each step is explained below.
Step one. Agree to arbitrate. You and your former partner both agree to refer the dispute to arbitration. You sign a form. This is Form ARB1FS for a financial case or Form ARB1CS for a children case. The form records the issues in dispute and confirms that you accept the IFLA rules. You can sign both forms if your case involves money and children.
Step two. Choose the arbitrator. You can name an arbitrator you both agree on. If you cannot agree the IFLA will appoint a suitable arbitrator from its panel. You submit the form to the IFLA.
Step three. The first appointment. The arbitrator holds an early meeting to set the timetable and the rules. They decide what disclosure is needed and whether any experts are required. This is similar to a case management hearing in court but you shape it.
Step four. The hearing. Your case can be decided on paper. It can be heard remotely. It can be heard in person. You and the arbitrator agree which format fits your dispute. A simple issue may need only written submissions. A full financial case may need a day of oral evidence.
Step five. The decision. The arbitrator produces a reasoned written decision. In a financial case this is the Award. In a children case it is the Determination.
Step six. The court order. You take the decision to the court. The court turns it into a binding order. In a financial case this is usually a consent order under the Matrimonial Causes Act 1973. You can read more about the financial side in our guide to the Financial Dispute Resolution hearing.
Is an arbitration award final? Can you appeal?
An arbitration award is final and binding but you can challenge it in limited circumstances. The right to challenge changed with the case of Haley v Haley in 2020. For years before that an award was almost impossible to overturn.
Before Haley an arbitration award was very hard to challenge. You could only attack it on the narrow grounds in the Arbitration Act 1996. You had to show the decision was obviously wrong on a point of law or that there was a serious irregularity. The fairness of the outcome had no place in the challenge. Many people avoided arbitration for this reason.
In Haley v Haley the Court of Appeal changed the test. It held that the family court keeps an overriding duty to make sure a financial order is fair. That duty cannot be handed to an arbitrator. So the court applies the same test to an arbitration award as it would to a first instance court decision. This is the appeals test. The question is simply whether the award was wrong. It does not have to be obviously wrong or to leap off the page. It just has to be wrong.
In practice this means a party who is unhappy with the award must show cause on paper. The court triages the challenge. If there is a real prospect of showing the award was wrong the matter goes to a hearing. If there is not the court turns the award into an order.
The result is a fair balance. Challenges are now realistic where an award is genuinely unfair. They are still not a free pass to reopen a decision you simply dislike. You should read our full analysis of Haley v Haley and what it means before you decide.
When is arbitration the wrong choice?
Arbitration is not right for every case. Avoid it where there is a risk of domestic abuse. Avoid it where assets may be hidden. Avoid it for a very simple agreement. And avoid it where you need urgent protection. Each situation is explained below.
Arbitration may be unsuitable where there is a risk of domestic abuse. A private process can leave a vulnerable person without the protections a court provides.
Arbitration is the wrong route where you suspect the other person is hiding assets. The process relies on honest financial disclosure. If you do not trust the disclosure the court has stronger powers to compel it.
Arbitration is not the cheapest option for a very simple agreement. If you are close to agreement mediation may settle it for less.
Court may be necessary where you need urgent protection or an immediate order. Arbitration is for resolving a dispute not for emergency relief.
Key takeaways
- Family law arbitration is a private process where an arbitrator decides your case and you are bound by the result.
- It covers most financial and child disputes but not the divorce itself or cases involving a risk of harm.
- It is faster and more private than court and you choose the decision maker.
- Expect to pay an arbitrator fee of roughly £1,000 to £5,000 plus VAT for an all issues case on top of your own legal costs.
- Since Haley v Haley you can challenge an unfair award using the same test the court applies to its own decisions.
- It is the wrong route where there is abuse hidden assets or a need for urgent protection.
Frequently asked questions
Is family arbitration legally binding? Yes. You agree to be bound when you sign the ARB1 form. The court will normally turn the decision into a binding order.
How long does family arbitration take? Many cases conclude within a few weeks or months. You agree the timetable at the start rather than waiting for a court date.
Can you appeal an arbitration award? Yes within limits. Since Haley v Haley the court applies the same test it uses for its own decisions. You must show a real prospect that the award was wrong.
Who pays for family arbitration? The arbitrator’s fee is usually shared equally. Each person normally pays their own legal costs. The arbitrator can order one party to pay more where their conduct justifies it.
Is arbitration the same as mediation? No. A mediator helps you reach your own agreement. An arbitrator makes the decision for you and you are bound by it.
Written by John Hirst. John is a family law solicitor and the founder of Trust Family Law. This guide is general information and not legal advice for your situation.