Family Arbitration
The rise of family arbitration: How divorce reforms are reshaping Financial Dispute Resolution
In a landmark shift for family law in the UK, recent changes to divorce proceedings in England and Wales are prompting a surge in interest around family arbitration and alternative ways of resolving disputes without having to go to court. It is a shift that is proving beneficial for families seeking clarity and fairness in their financial settlements not to mention a speedier route to resolution while the court system continues to grapple with mounting pressures and delays.
The changing landscape of divorce proceedings
On the 15th September 2025, Sir Andrew McFarlane, President of the Family Division, issued a rare and impactful . He announced the London family courts are exceeding their mandated allocation of time for financial remedy cases. This revelation signals a significant recalibration of priorities, with public law matters like care proceedings now taking precedence over private financial disputes.
To manage this shift, London courts are implementing three new scheduling strategies:
- Short hearings may be rescheduled with little notice.
- Longer hearings will be “double listed,” meaning a backup trial is scheduled behind a primary one, with no guarantee of when or if it will proceed.
- Replacement dates may be offered within three months, but this uncertainty adds delay, stress and cost for families already navigating a difficult process.
The implications are profound. A case initiated today could take six months to reach a settlement hearing and up to nine more months for a final hearing assuming, of course, it isn’t postponed.
For complex cases involving offshore assets, business valuations or extensive witness testimony, the preparation required is substantial. This means that if hearings are delayed or cancelled, families could well face the burden of repeating costly legal work.
We may see these new scheduling strategies taking place in the northern courts, should it prove successful in London. There is therefore no better time than now to consider alternative dispute resolution.
Why is family arbitration gaining ground?
Against this backdrop, family arbitration is emerging as a beacon of hope.
Unlike court proceedings, arbitration offers a number of distinct advantages. Hearings are guaranteed to proceed as scheduled, without the risk of disruption or postponement that often affects the court system. The process is private, ensuring that sensitive financial details remain shielded from public scrutiny. Parties also have the freedom to choose their arbitrator, selecting a qualified expert who has the time and expertise to prepare thoroughly for the case. Most importantly, arbitration provides finality, with binding decisions that carry the same authority as a court judgment.
While arbitration is admittedly nothing new, its appeal has grown exponentially in light of recent court constraints. It provides a structured yet flexible framework for resolving disputes. It is also often faster and more cost-effective than litigation which is why it is growing in popularity as a realistic alternative to traditional court-based proceedings.
Navigating divorce’s new landscape
Law firms across the UK are adapting swiftly. Practices are placing increasing emphasis on introducing their clients to arbitration and early neutral evaluation (ENE) to help families understand their options and make informed decisions as to how they wish to proceed.
This has allowed arbitration to step out of its historic position as a last resort and begin to position itself as a choice that affords the parties more control over their outcomes.
England and Wales are uniquely positioned to lead this shift. The country has already created a tight knit infrastructure of trained arbitrators, all of whom are experienced family law practitioners. Wake Smith’s family team are very much part of this infrastructure.
The broader implications of the rise of family arbitration
The move toward arbitration reflects a deeper transformation in how society views dispute resolution.
It aligns with global trends favouring collaborative law, mediation and non-adversarial approaches. These methods prioritise dialogue, mutual respect and the demand for more tailored solutions. These are all values that resonate strongly in emotionally charged situations like divorce.
But has the rise of family arbitration also underlined the urgent need for legal reform and investment in court resources? Yes, alternative dispute resolution methods offer some relief for and from the beleaguered family court system, but they should complement rather than replace a well-functioning public justice system. Giving people access to a fair hearing in a timely fashion must remain a cornerstone of legal equity.
At Wake Smith, we are committed to helping families explore the full range of dispute resolution options. As experienced practitioners in Alternative Dispute Resolution (ADR), including private Financial Dispute Resolution hearings (pFDRs) as well as proud members of Resolution, our family lawyers are accredited to act in arbitration, providing you with expert guidance and total clarity even in the most complex cases.
