What Is the Difference Between Mediation and Arbitration?

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Families who wish to avoid the time, expense, and stress of using litigation to resolve a domestic relations matter may pursue alternative dispute resolution methods, such as mediation or arbitration. While these two approaches share certain things in common, there are also key differences that might make one approach more suitable than the other for a given situation. An experienced family law attorney can help you decide whether mediation or arbitration may provide the best avenue to resolve your legal matter.

Understanding Mediation

Mediation allows families to participate in a more structured form of settlement negotiations overseen by a neutral third party called a mediator. The mediator does not decide any aspects of the parties’ case. Instead, the mediator helps the parties negotiate a settlement. Mediators assist parties with understanding the strengths and weaknesses of their respective cases to evaluate settlement offers. Mediators may also suggest solutions for parties to incorporate into a mutually agreeable settlement.

Mediation occurs over one or more sessions in which the parties can discuss their case with the mediator. The mediator can communicate settlement offers between the parties, helping them reach a resolution that both parties can accept.

Understanding Arbitration

Arbitration offers an alternative to traditional court litigation. Arbitration involves a trial-like proceeding where parties may engage in limited discovery (exchanging evidence) before attending a hearing before a neutral third party called an arbitrator, whom the parties choose to decide the case. The arbitrator will hear the parties’ evidence, witnesses, and arguments before issuing a ruling; in most cases, parties will agree to binding arbitration, which results in an award that the prevailing party can enforce in court. However, the party who loses arbitration has limited appellate rights.

Key Differences Between Mediation and Arbitration

The primary differences between mediation and arbitration include:

  • Role of the neutral third party: A mediator takes a facilitator role, as they have no authority to decide any issues in the parties’ case; instead, they help parties negotiate a settlement. Arbitrators assume a decision-making role, issuing a ruling that decides the issues in dispute.
  • Binding effect: Mediation does not require parties to settle; although they must negotiate in good faith, either party can walk away from the mediation if negotiations reach an impasse. Conversely, arbitration normally results in a binding decision that resolves the parties’ dispute.
  • Formality: Mediation usually occurs in an informal, relaxed setting where parties can have a free-flowing conversation. Conversely, arbitration resembles a more informal version of a courtroom trial.
  • Cost: Mediation may have minimal costs, with expenses primarily limited to the mediator’s fee. Arbitration usually involves higher fees than mediation, although its streamlined nature can result in overall lower costs than court litigation. 

Which Should You Choose? 

Factors you may consider when deciding between mediation and arbitration to resolve your family law matter include:

  • The importance of maintaining control over the outcome
  • Cost considerations
  • The complexity of the issues in the case
  • The need for an ongoing relationship with the opposing party (such as exes who continue to co-parent children)

Contact A Family Law Attorney Today

Alternative dispute resolution methods like mediation and arbitration can help you pursue a fair outcome to your family law matter. Contact Melinda Weerts Law, PLLC, today for a confidential consultation with our legal team to learn more about the differences and benefits of mediation or arbitration in a family law case.

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