Most financial disputes. Not all situations.
Arbitration works for most financial disputes. It cannot be used for parenting, and it cannot be used at all unless both of you agree to it.
If your dispute is about property, superannuation, debts or spousal maintenance, and the other party is willing, it can be arbitrated. Whether it is the right choice for you depends on the nature of your dispute.
- Family law financial disputes
- Every matter, and where each of them can go.
- Most can be arbitrated
- Property, superannuation, debts and spousal maintenance, where both parties agree.
- Not parenting
- An arbitrator cannot decide anything about children. Those issues stay with the parents or the court.
- Not without agreement
- Arbitration cannot start unless both parties agree to it, privately or on referral by the court.
- Not where it is unsafe
- Where violence or an imbalance of power means a party cannot take part freely, arbitration is not appropriate.
What can be arbitrated
An arbitrator can decide how property and financial resources are divided, spousal maintenance, and other financial questions between separating couples.
An arbitrator cannot decide anything about children. Parenting arrangements and child support are for agreement between the parents, or for the court.
If your matter involves both, the financial issues can still be arbitrated. The two run separately, and the financial dispute does not have to wait.
Find out more about arbitrationBoth of you have to agree
This is the point most matters turn on. Arbitration is not something one person can start. Both parties have to agree to it, and both have to agree on who the arbitrator will be.
If the other party will not agree, arbitration is not available and the matter stays with the court.
You do not have to agree about the dispute itself. You only have to agree on how it will be decided.
You will each need legal advice before the arbitration agreement is signed. This is a requirement. The agreement itself has to contain a statement that you were given advice on it, signed by the lawyer who gave you the advice.
You do not need a lawyer for the whole arbitration. Parties can act for themselves throughout and get advice on the agreement alone. But you will need a lawyer willing to give that advice and sign. An arbitration cannot proceed until each of you has done so. You cannot use the same lawyer as the other party.
Where it makes the most difference
Almost any financial matter can be arbitrated. These are the ones where it makes the most difference.
The dispute is worth less than the wait
Legal fees and years of uncertainty can add up to more than the amount actually in dispute.
You are both ready and the court is not
The preparation is done, and what you are waiting for is a date.
Your hearing date has been lost
An arbitration date is fixed by agreement and does not compete with a court list.
Everything is agreed except one thing
A valuation, or how a particular contribution should be treated. A single question like this can often be decided on the documents alone, without a hearing.
You agree on most of the facts but not the outcome
The hearing can be shorter and narrower than its court equivalent.
You need it to fit around you
Online, in a regional area, or outside ordinary court hours.
What you are giving up
Two things, and both should be understood before you agree rather than after.
Cost
You are paying for the decision-maker. A court hearing does not carry a fee for the judge. In an arbitration, the parties pay for the arbitrator. Those costs are shared equally between you, unless you both agree in writing to something different.
While this is an additional cost to the traditional court process, arbitrations can still be cheaper because the timetable is streamlined and the hearing is fixed.
Finality
The decision is final. Once an award is registered, a court can review it only on a question of law. It can also set an award aside, but only in four situations: where the award was obtained by fraud, including the non-disclosure of something material; where it is void, voidable or unenforceable; where circumstances have changed so that it cannot be carried out; or where the arbitration was affected by bias or a lack of procedural fairness.
You cannot ask a court to decide the matter again simply because you think the arbitrator reached the wrong result.
When arbitration is not the right process
Arbitration depends on both people being able to take part properly. It is not suitable where:
- one party would not be able to meaningfully or safely participate
- one party does not understand what arbitration involves or what it may lead to
- one party cannot give proper instructions to a lawyer, or cannot satisfactorily appear at a hearing
- the rights of someone else (a company, a trust, a family member, a creditor) are in dispute and cannot be dealt with
- the dispute is about children
If any of this applies, say so early. An arbitrator has to stop an arbitration where a party cannot properly take part, and it is better to know before anyone has spent money.
If you are in immediate danger, contact police on 000. Confidential support is available from 1800RESPECT on 1800 737 732.
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What if the other party stops taking part
An arbitrator can suspend an arbitration where a party does not comply with a direction. If the delay runs on, and the arbitration was ordered by a court, the arbitrator must refer the matter back to the court.
Arbitration is not a way for one party to stall. But it does depend on both parties continuing to take part, and if one of them will not, the matter may end up back in the court list.
There may be costs consequences to the party who stops participating.
If you think it might suit
If you have a lawyer, talk to them. If you do not, you can still arbitrate — but you will need advice on the arbitration agreement before you sign it. That is a requirement of the Regulations.
If you have questions about availability, fees, or process, please submit an enquiry. An arbitrator cannot discuss the facts or merits of a matter with one party alone.