How Mediation and Arbitration Can Lead to Faster Divorce Settlements
Divorce is often an emotionally charged and legally complicated process, particularly when disputes over property division, child custody, or alimony arise. In North Carolina, where divorce laws emphasize equitable distribution and the best interests of children, traditional litigation can be time-consuming and costly.
However, alternative dispute resolution (ADR) methods like mediation and arbitration offer efficient pathways to faster divorce settlements. These methods prioritize collaboration, privacy, and flexibility, allowing couples to resolve conflicts without the prolonged timelines of court battles.
The Ward Family Law Group in Cary, North Carolina, can explain how mediation and arbitration work in North Carolina, their benefits, and their role in expediting divorce settlements, while also addressing potential challenges and considerations. Contact our divorce attorney for assistance.
A Breakdown of Mediation and Arbitration in Divorce
Here’s everything you need to know about what meditation and arbitration are.
What Is Mediation?
Mediation is a voluntary, non-binding process where a neutral third party, the mediator, facilitates communication between divorcing spouses to help them reach a mutually acceptable agreement.
The mediator doesn’t impose decisions but guides the couple through discussions on issues such as property division, child custody, child support, and alimony. In North Carolina, mediation is often court-ordered for child custody disputes, but couples can also choose it for other divorce-related matters.
The process is informal, typically conducted in a private setting, and focuses on open dialogue. Mediators, who are often trained attorneys or certified professionals, help clarify issues, identify priorities, and explore creative solutions. If an agreement is reached, it’s drafted into a settlement document, which can be submitted to the court for approval. If mediation fails, the couple can proceed to arbitration or litigation without prejudice, as mediation discussions are confidential.
What Is Arbitration?
Arbitration, in contrast, is a more formal process where a neutral third party, the arbitrator, acts as a private judge. The arbitrator hears evidence and arguments from both spouses and makes a binding decision, known as an award, which is enforceable in court.
In North Carolina, arbitration is less common than mediation but is gaining traction for divorce cases, particularly when couples want a definitive resolution without court delays.
Arbitration can be binding or non-binding, depending on the agreement. Binding arbitration means the arbitrator’s decision is final, with limited grounds for appeal, while non-binding arbitration allows parties to reject the decision and pursue other options.
Arbitration is customizable, allowing couples to set rules for evidence, timelines, and the scope of issues, making it faster than traditional litigation. If you have questions about the process, contact our divorce attorney for assistance.
The North Carolina Context
North Carolina’s divorce laws provide a structure that supports ADR. The state requires a one-year separation period before an absolute divorce can be granted, during which couples must resolve issues like equitable distribution of marital property, alimony, and child custody.
Without agreement, these matters often proceed to court, where backlogs and procedural requirements can extend the process by months or years. Mediation and arbitration offer alternatives that align with North Carolina’s emphasis on fair and efficient resolutions.
Court-Ordered Mediation in North Carolina
In North Carolina, mediation is mandatory for child custody and visitation disputes unless waived due to specific circumstances, such as domestic violence or mutual agreement. The state’s Family Financial Settlement Program also encourages mediation for equitable distribution and alimony disputes before litigation.
These programs aim to reduce court congestion and promote settlements. Court-ordered mediations are typically conducted within a set timeframe, often 60–90 days, which accelerates the resolution process compared to litigation, where scheduling hearings can take months.
Arbitration in North Carolina
Arbitration isn’t mandated but is recognized under the North Carolina Revised Uniform Arbitration Act. Couples can voluntarily agree to arbitrate specific issues, such as property division or spousal support, through a written agreement.
The state’s courts uphold arbitration awards, provided they comply with legal standards, making arbitration a reliable option for binding resolutions. The flexibility to choose an arbitrator with experience in family law further enhances efficiency, as extensive knowledge streamlines decision-making.
Benefits of Mediation and Arbitration for Faster Settlements
If you’re hoping for faster settlements, then you can benefit from mediation and arbitration in a number of ways. Here are some of them.
Speed and Efficiency
Mediation and arbitration significantly reduce the time required to resolve divorce disputes. Litigation in North Carolina can take 12–24 months or longer, especially in contested cases, due to court schedules, discovery processes, and trial preparation.
Mediation, by contrast, can be completed in a few sessions over weeks or months, depending on the intricacy of issues and the couple’s willingness to negotiate. Arbitration, while more formal, typically concludes within a few months, as parties can set expedited timelines and avoid court delays.
For example, a couple mediating child custody might resolve their dispute in 2–3 sessions, drafting an agreement within a month. In arbitration, a property division dispute could be resolved in a single hearing, with the arbitrator issuing a decision within weeks.
These timelines contrast sharply with litigation, where even preliminary hearings may be scheduled months apart. It’s important to work with a divorce attorney to keep these timelines under control.
Cost Savings
Divorce litigation is expensive, with attorney fees, court costs, and expert witness expenses accumulating over time. Mediation and arbitration are generally more cost-effective. Mediation sessions are priced per hour, and because the process is shorter, total costs are lower.
Arbitration, while more expensive than mediation due to its formal nature, is still cheaper than litigation, as it eliminates prolonged discovery and trial costs.
In North Carolina, where attorney fees for contested divorces can exceed $20,000, ADR offers significant savings, freeing resources for post-divorce stability.
Privacy and Confidentiality
Unlike court proceedings, which are public, mediation and arbitration are private. In mediation, discussions are confidential, and nothing said can be used in court if the process fails. Arbitration hearings are also private, and awards aren’t typically published.
This privacy is particularly valuable in North Carolina, where high-profile or sensitive cases, such as those involving business assets or public figures, benefit from discreet resolutions. Faster settlements through ADR minimize public exposure and emotional stress.
Control and Flexibility
Mediation empowers couples to control the outcome, as they craft their own agreement rather than having a judge impose a decision. This collaborative approach fosters creative solutions, such as tailored custody schedules or unique property divisions, that courts may not consider.
Arbitration, while less collaborative, allows couples to set procedural rules and choose an arbitrator with relevant experience, securing a more tailored process. Both methods offer flexibility that litigation lacks, enabling faster resolutions aligned with the couple’s needs.
Reduced Emotional Toll
Divorce litigation often escalates conflict, as adversarial proceedings pit spouses against each other. Mediation promotes cooperation, reducing hostility and fostering better post-divorce relationships, especially important for co-parenting.
Arbitration, while less collaborative, resolves disputes quickly, minimizing prolonged emotional strain. In North Carolina, where courts prioritize the best interests of children, ADR’s less contentious nature supports healthier family dynamics, contributing to faster emotional recovery and settlement.
Enforceability and Finality
Mediation agreements, once approved by a North Carolina court, are legally binding, securing enforceability. Arbitration awards are also enforceable, with binding decisions offering finality that prevents further disputes.
This certainty accelerates the divorce process, as couples avoid appeals or protracted negotiations common in litigation. For example, an arbitration award on alimony can be entered as a court order, finalizing that issue without additional hearings.
Challenges and Considerations
While mediation and arbitration offer clear advantages, they’re not without challenges. Understanding these limitations is crucial for couples considering ADR in North Carolina.
Mediation Requires Cooperation
Mediation’s success depends on both spouses’ willingness to negotiate in good faith. If one party is uncooperative, dishonest, or unwilling to compromise, mediation may fail, delaying resolution. In such cases, arbitration or litigation becomes necessary, potentially offsetting time savings. Couples should assess their ability to communicate before choosing mediation.
Arbitration’s Binding Nature
Binding arbitration’s finality can be a double-edged sword. While it verifies a swift resolution, there is limited recourse for appeal, even if the arbitrator’s decision seems unfair. Couples must carefully select a qualified arbitrator and clearly define the scope of arbitration to avoid unfavorable outcomes.
Power Imbalances
In both mediation and arbitration, power imbalances—such as financial disparities or emotional dominance—can skew negotiations or hearings. Mediators and arbitrators are trained to mitigate this, but couples should confirm they have legal representation to advocate for their interests. In North Carolina, attorneys often participate in ADR to level the playing field.
Not Suitable for All Cases
Mediation and arbitration may not be appropriate in cases involving domestic violence, fraud, or intricate legal issues requiring extensive discovery. North Carolina courts allow waivers for mandatory mediation in such cases, and couples should consult a divorce attorney to determine the best approach.
Upfront Costs
While ADR is generally cheaper than litigation, mediation and arbitration require upfront fees for mediators, arbitrators, and attorneys. Couples with limited resources may need to weigh these costs against potential savings, particularly if mediation fails and further proceedings are required.
Contact a Divorce Attorney
Mediation and arbitration are powerful tools for achieving faster divorce settlements in North Carolina. Contact our divorce attorney at the Ward Family Law Group for assistance. Our office in Cary, North Carolina, serves Wake County, Durham County, Chatham County, Franklin County, Johnston County, and Orange County. Our office in Wake Forest, North Carolina, serves the North Raleigh, Wake Forest, Youngsville, Rolesville, Louisburg, and Zebulon areas. Call today.
