Family Arbitration and Med Arb
A binding decision, from an arbitrator the parties choose, on a timetable the parties set, without a public court file.
Start My Enquiry →A binding decision, from an arbitrator the parties choose, on a timetable the parties set, without a public court file.
Start My Enquiry →Arbitration Act | Family Law Act | Independent Legal Advice | Enforcement
Family arbitration is a private determinative process in which the parties appoint an arbitrator to decide their dispute, governed by the Arbitration Act and the Family Law Act. To be valid in Ontario, family arbitration must be conducted under Ontario law or another Canadian jurisdiction, each party must receive independent legal advice before signing the arbitration agreement, and screening for power imbalance and domestic violence must be carried out. The resulting award is binding and can be enforced by the court.
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In court the parties take the judge who is assigned. That judge may be outstanding, and may equally have spent a career in criminal law before appointment. In a case turning on the valuation of a private company, the treatment of a discretionary trust interest or the apportionment of restricted share units, the ability to appoint a decision maker who has spent years on precisely those questions is a substantial advantage.
Timetable control matters just as much. Court dates are allocated according to the resources of the system. Arbitration dates are arranged between the parties, counsel and the arbitrator, and a discrete issue can be heard in weeks rather than waiting for an opening. Where a business decision or a transaction depends on the outcome, that difference is commercially significant.
Arbitration is also flexible about procedure. The parties can agree to a documents only determination on one issue, a short oral hearing on another, and full evidence on a third. That flexibility is unavailable in court and it lets the cost of the process match the value of what is in dispute.
Mediation arbitration combines the two. The same neutral first attempts to mediate a resolution, and if agreement is not reached on some or all issues, moves to arbitrate and decide them. The attraction is that the parties do not have to start again with a new decision maker, and the presence of a binding second stage tends to concentrate minds in the first.
It carries a recognised tension. Information disclosed in confidence during mediation may be known to the person who later decides the case. This is managed by a clear agreement about what carries over, and by an informed choice made before the process begins rather than after it has become uncomfortable.
Med arb works well where the parties are capable of negotiating and want a guaranteed conclusion. It works less well where one party is using process to delay, or where the imbalance between the parties is such that mediation is not genuinely voluntary.
Family arbitration in Ontario is only valid if it complies with specific requirements. It must be conducted in accordance with the law of Ontario or another Canadian jurisdiction. Each party must receive independent legal advice before entering the arbitration agreement. Both parties must be screened separately for power imbalance and domestic violence, and the screening must be considered by the arbitrator.
These requirements are not formalities. An award made outside them may be unenforceable, which defeats the entire purpose of choosing a determinative process. The arbitration agreement itself needs care: what issues are submitted, what procedure applies, what record is kept, and what rights of appeal the parties retain.
Appeal rights are a genuine choice. The parties can agree that the award is final, or preserve an appeal on questions of law, or on law and fact. Broad appeal rights reduce finality and can reintroduce the delay and publicity arbitration was chosen to avoid. Narrow rights maximise finality and mean living with a result even if it disappoints.
Arbitration is not free. The parties pay the arbitrator as well as their own counsel, and for a short dispute that can make it more expensive than a court appearance. For a substantial dispute the position generally reverses, because the process is faster, the hearing time is used efficiently, and the adjournments that consume court based litigation largely disappear.
An award is binding on the parties and can be filed with the court for enforcement in the same manner as an order. Support obligations established by an award can be enforced through the usual mechanisms. The award is not a private understanding, it is a determination with legal force.
Whether arbitration is right depends on the case. It suits complex financial disputes, parties who value privacy, and situations needing a decision on a defined timetable. It suits less well cases requiring urgent enforcement powers a court holds, or where one party will not participate in good faith at all.
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Our lawyers act in family arbitrations and prepare arbitration agreements. Call, email, or arrange a consultation to discuss whether a private process suits your matter.
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