Family arbitration explained
Key facts
- Family arbitration is a private process in which a qualified arbitrator makes a binding decision under the IFLA scheme.
- The Institute of Family Law Arbitrators (IFLA) runs two schemes: one for financial disputes and one for children matters.
- Arbitration is faster and more flexible than court because you choose the arbitrator and the timetable.
- The arbitrator’s decision, called an award in financial cases, is binding and is normally converted into a court order.
- Unlike mediation, the arbitrator decides the outcome; unlike court, the process is private and you help shape how it runs.
Family arbitration is a way of getting a binding decision on a family dispute without going to court. You and your ex-partner appoint a qualified arbitrator, a bit like choosing your own private judge, and agree to be bound by their decision. It is one of the recognised forms of non-court dispute resolution, and it fills an important gap: it offers the finality of a court ruling with the speed and privacy of a private process.
This guide explains how family arbitration works, what it can cover, and how it sits alongside mediation and court. If you are weighing several routes, our overview of which NCDR option fits your situation compares them all.
How does family arbitration work?
You both sign an agreement to arbitrate and jointly appoint an arbitrator, who is usually an experienced family lawyer or barrister trained and accredited by IFLA. You can agree the scope, whether the arbitrator decides on paper or after a hearing, and the timetable. The arbitrator considers the evidence, applies the law of England and Wales, and issues a decision. In a financial case this decision is called an award; in a children case it is a determination.
The decision is binding. In financial cases it is then submitted to the court and, in the ordinary way, made into a consent order so it is fully enforceable. In children cases the court is asked to make an order that reflects the determination. The court retains its role, but in practice the arbitrator’s decision stands unless there is a serious problem with it.
Family arbitration operates under the Arbitration Act 1996. The Institute of Family Law Arbitrators (IFLA) runs two schemes, the Family Law Arbitration Financial Scheme and the Family Law Arbitration Children Scheme, each with its own rules (ARB1FS and ARB1CS). The Court of Appeal has confirmed that an arbitral award should be given effect by the court in the same way as an agreement, and can only be challenged on limited grounds. Arbitration is a recognised form of non-court dispute resolution under the Family Procedure Rules.
What can arbitration cover?
The two IFLA schemes cover different ground. The financial scheme deals with money and property on divorce or separation. The children scheme deals with certain arrangements for children. The table sets out the split.
| Scheme | What it can decide |
|---|---|
| Financial Scheme (ARB1FS) | Division of assets, property, pensions, maintenance and other financial matters |
| Children Scheme (ARB1CS) | Certain arrangements for children, such as where they live and time spent with each parent |
Some matters sit outside arbitration. It cannot be used, for example, to decide questions that only a court can determine, and safeguarding concerns are always for the court. The children scheme has particular limits, and an arbitrator will not deal with a case involving serious welfare or safety issues.
Arbitration compared with mediation and court
It helps to see arbitration alongside the two routes people know best. In mediation, you keep control and reach your own agreement. In court, a judge decides but the process is slow and public. Arbitration lands in between: someone else decides, as in court, but you shape the process and keep it private, as in mediation.
| Mediation | Arbitration | Court | |
|---|---|---|---|
| Who decides | You both | The arbitrator | The judge |
| Binding | Once made an order | Yes | Yes |
| Privacy | Private | Private | More open |
| Speed | Fast | Fast, you set the pace | Often slow |
| You choose the decision-maker | Not applicable | Yes | No |
Because the two are complementary, arbitration and mediation are sometimes combined. Couples may mediate most issues and arbitrate the one or two points they cannot agree, an approach sometimes reached through hybrid mediation. If you want to understand the legal framework behind all these options, see our explainer on non-court dispute resolution.
What does arbitration cost?
You pay the arbitrator’s fees, usually shared, plus any legal advice you each take. That makes arbitration more expensive than mediation, where there is no decision-maker to pay. But for a suitable case it can work out cheaper and much faster than a contested court battle, because you avoid repeated hearings and long waits. The cost depends on the arbitrator’s rates, whether there is a hearing, and how complex the dispute is.
It helps to think of the fee as buying two things: expertise and speed. You are paying a senior specialist to decide your case, and you are paying to have it decided on your timetable rather than the court’s. Where a dispute is narrow, for example a single pension or valuation point, you can keep costs down by asking the arbitrator to decide on the papers alone. Where the issues are wider, a short hearing may be worth the extra expense. Either way, agreeing the scope and format at the outset lets you keep the cost proportionate to what is genuinely in dispute.
What are the advantages and limits?
The appeal of arbitration is control and speed with a guaranteed ending. You choose the arbitrator, often for their particular expertise in pensions, business assets or complex finances. You agree the timetable rather than waiting for a court listing, and you keep the whole thing private. Because the same arbitrator sees the case through, there is continuity that a court, where a different judge may hear each stage, cannot always offer. And, unlike mediation or evaluation, you end with a binding decision.
The main limit is that you give up control of the outcome. Once you agree to arbitrate, you are bound by the arbitrator’s decision, even if it is not the result you hoped for. There is a cost to pay that you would not face in mediation, and the grounds for challenging an award are narrow. Arbitration also cannot decide everything: safeguarding and certain welfare issues remain for the court. For the right case, though, these are reasonable trade-offs for a fast, private and final result.
Good to know
Arbitration is binding, so it suits couples who want certainty and a final answer but would rather not wait for a court date or air their affairs in a public forum. It is not the right route where there are safety concerns, which are always a matter for the court.
Family arbitration step by step
Arbitration follows a set of clear stages, but you and your ex-partner shape how it runs. First, you both agree to arbitrate and sign the relevant form, ARB1FS for finances or ARB1CS for children. Second, you jointly appoint an arbitrator from the IFLA panel, often choosing someone with particular expertise in the issue in dispute. Third, you agree the scope and the procedure, including whether the arbitrator decides on the papers alone or after a hearing, and you set a timetable together.
The arbitrator then gathers what they need, which usually means financial disclosure and short position statements from each side. They consider the evidence, apply the law of England and Wales, and issue their decision. In a financial case this is an arbitral award; in a children case it is a determination. The decision is then reflected in a court order so it is fully enforceable.
How to choose an arbitrator
Because you appoint the arbitrator together, you can pick someone whose experience matches your dispute. IFLA-trained arbitrators are experienced family lawyers, barristers or former judges. Some specialise in complex financial cases, others in pensions or business assets, and others in arrangements for children. You also agree how formal the process should be, from a decision on the papers to a full hearing, which lets you keep the cost of the process in proportion to the size of what is in dispute.
The advantages and limits at a glance
Weighing the strengths against the trade-offs helps you decide whether arbitration fits. The table below sets them side by side.
| Advantages | Limits |
|---|---|
| You choose the arbitrator and their expertise | You pay the arbitrator’s fees, unlike court |
| You set the timetable and avoid court waits | You give up control of the final outcome |
| The process and the result stay private | Only narrow grounds to challenge an award |
| The same person sees the case through | Cannot decide safeguarding or serious welfare issues |
| You end with a binding, final decision | Not suitable where there are safety concerns |
Is the decision final, and can it be challenged?
An arbitral award is designed to be final. That certainty is much of the appeal, but it also means you cannot simply reopen the decision because you dislike it. The grounds for challenging an award are narrow, broadly limited to matters such as a serious procedural irregularity or a genuine error of law, reflecting the framework of the Arbitration Act 1996. In financial cases the court is asked to make an order in the terms of the award, and it will normally do so unless there is a compelling reason not to.
Because the decision binds you, it is wise to take independent legal advice before you agree to arbitrate and before the final order is made. That way you go in understanding both the process and the range of outcomes an arbitrator might reach. A solicitor can advise you at these points, much as they would after mediation.
Who is family arbitration best for?
Arbitration tends to suit couples who cannot agree on one or more issues but want a final answer without a long, public court case. It is especially useful where the dispute turns on a technical question, such as how to divide a pension or value a business, because you can appoint an arbitrator with exactly that expertise. It also suits people who value privacy and continuity, since the same arbitrator handles the case from start to finish.
It is less suitable where there are safeguarding concerns or serious welfare issues, which are always for the court, or where one person will not take part or disclose honestly, since arbitration, like mediation, depends on both people engaging. For many families it works best as a companion to mediation: you agree what you can in mediation, then arbitrate only the points that remain in genuine dispute.
Rachel and Dan had settled almost everything about their divorce in mediation, but they were stuck on how to divide a pension and the value of Dan’s small business. Neither wanted a year-long court case over two issues. Their mediator explained arbitration, and they jointly appointed an arbitrator to decide just those points on paper. Within a few weeks they had a binding award. It was folded into the consent order alongside everything they had already agreed in mediation, and their divorce was finalised without a single court hearing.
Frequently asked questions
Is an arbitrator’s decision legally binding?
Yes. The arbitrator’s decision, called an award in financial cases, is binding on both of you. In financial matters it is normally converted into a consent order so it is fully enforceable, and it can only be challenged on limited grounds.
How is arbitration different from mediation?
In mediation you and your ex-partner reach your own agreement and the mediator does not decide anything. In arbitration you appoint an arbitrator who makes the decision for you, and that decision is binding.
What can family arbitration decide?
Under the IFLA schemes it can decide financial and property matters, and certain arrangements for children. It cannot deal with cases involving safeguarding or serious welfare concerns, which are for the court.
Is arbitration cheaper than court?
It can be. You pay the arbitrator’s fees, which court does not charge, but you usually avoid repeated hearings and long delays, so for a suitable case it is often quicker and cheaper overall than a contested court case.
Can we arbitrate only part of our case?
Yes. Many couples mediate most issues and arbitrate only the one or two points they cannot agree. The arbitrator’s decision on those points is then combined with the rest of the agreement.
How do we choose an arbitrator?
You appoint one together from the IFLA panel of trained family arbitrators, who are experienced lawyers, barristers or former judges. You can pick someone with expertise that matches your dispute, such as pensions or business assets.
Can an arbitration award be appealed?
Only on narrow grounds. An award is meant to be final, and it can generally be challenged only for a serious procedural irregularity or a genuine error of law under the Arbitration Act 1996, not simply because one person is unhappy with it.
How long does family arbitration take?
It depends on the complexity and whether there is a hearing, but because you set the timetable rather than wait for a court listing, it is usually much quicker than a contested court case, often a matter of weeks to a few months.
Sources
- Institute of Family Law Arbitrators, A Guide to Family Arbitration, ifla.org.uk. Accessed 9 July 2026.
- Institute of Family Law Arbitrators, Financial Scheme Rules (ARB1FS), ifla.org.uk. Accessed 9 July 2026.
- Resolution, Family arbitration, resolution.org.uk. Accessed 9 July 2026.
- Arbitration Act 1996, legislation.gov.uk. Accessed 9 July 2026.