What Is Arbitration in Family Cases? A Plain-English Guide

People searching for arbitration meaning are often trying to work out whether it is a way to avoid court. This guide explains the word in everyday language, based on what litigants and McKenzie Friends commonly tell us.

This article shares general, community-based observations. It is not legal advice. Speak to a qualified legal professional about your own circumstances.

Arbitration in simple terms

Arbitration is a private process for resolving a dispute. Instead of a judge deciding, the people involved agree to ask an independent person, called an arbitrator, to make the decision.

The key features people usually describe are:

• It is agreed. Both sides normally have to consent to arbitrate.
• It is private. It usually takes place outside a courtroom.
• The parties agree in advance to be bound by the decision. What the arbitrator decides is called an award. In family finance cases the award is normally put to the family court, which keeps its own power to decide whether to make an order in those terms (see below).
• The parties often choose the arbitrator and agree the rules in advance.

What does an arbitrator do?

An arbitrator listens to each side, looks at the documents, and then makes a decision. Arbitrator meaning in law is simply: an independent decision-maker chosen by the parties rather than allocated by a court.

In family cases, arbitrators are usually specially trained lawyers or other professionals who work under a defined scheme, such as the Institute of Family Law Arbitrators (IFLA) Financial Scheme, which has been running since 2012. IFLA arbitrators are trained and accredited, with training and regulation handled through the Chartered Institute of Arbitrators.

The Arbitration Act 1996

The Arbitration Act 1996 is the main law governing arbitration in England and Wales. It was amended by the Arbitration Act 2025, which came into force on 1 August 2025. In very broad terms the 1996 Act sets out that:

• parties are free to agree how their dispute is resolved, with limited court involvement;
• an award is generally final and binding;
• there are only narrow grounds for challenging an award.

This is a summary only. The Act itself and the scheme rules are the authoritative sources.

Family finance cases are different

In a family finance case, an arbitration award does not work like a commercial one. In Haley v Haley [2020] EWCA Civ 1369 the Court of Appeal held that the family court keeps its discretion under the Matrimonial Causes Act 1973 when asked to make an order in the terms of an award. A party who is unhappy with an award can ask the court to look at it using the family court appeal approach, and the question is whether the award was wrong. The agreement to arbitrate is a very significant consideration for the court, but it does not remove the court's role. This is not a second go at the case. It is a high bar, and you should take advice before relying on it.

Arbitration vs court: what people notice

• Who decides — Arbitration: An arbitrator you agree on · Court: A judge allocated by the court
• Privacy — Arbitration: Usually private · Court: Usually in a court building
• Timing — Arbitration: Often more flexible · Court: Depends on court listing
• Cost — Arbitration: Parties usually pay the arbitrator · Court: Court fees apply
• Challenging the outcome — Arbitration: Narrower than an appeal from a court. In family finance cases the family court still reviews the award before making an order · Court: Appeal routes exist

Questions litigants often ask

Is arbitration the same as mediation? No. In mediation the mediator helps you reach your own agreement. In arbitration the arbitrator makes the decision for you.

Can I change my mind part-way through? Many people are surprised that you agree to be bound by the award once you have agreed to the process. In a financial case the court can still decline to make an order in the award's terms, but you should not plan on that. It is worth understanding this before you sign anything.

Do I need a solicitor? Not necessarily, but many people take advice on the agreement to arbitrate before they commit.

Where to go next

• Look up the term in our glossary.
• Explore Start Here if you are not sure where you are in the process.
• Read about how a McKenzie Friend may be able to support you.

Sources

• Haley v Haley [2020] EWCA Civ 1369 (National Archives case law)
• Arbitration Act 2025 (legislation.gov.uk)
• IFLA: What is Arbitration?
• IFLA 2015 Rules, annotated (Birketts)
• Citizens Advice: Using mediation to help you separate

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