A viable alternative to Litigation is Arbitration. This is extensively used in the building and construction industry. In the 1980s and 1990s, Arbitration was also used in family law matters. There were disadvantages under the legislation at that time in using Arbitration and its use diminished. The Family Law Regulations were amended in 2001 which overcame the earlier problems associated with Arbitration Act Australia.
The amendments to the regulations allowed the registration of Awards, which meant that either party could register an Award without the consent of the other party and it would still be binding on both parties. Before the amendments were made if an Award was made by the Arbitrator and one party disagreed and did not give consent to the registration of the Award then the Award could not be registered and was not binding.
After the amendments to the Regulations, the Awards now are binding even though one party may not give consent to the registration of the Award and the Awards become a binding Order of the Court.
There is now an obligation on solicitors to advise clients of the means of resolving their difficulties by way of Arbitration. There is a requirement to provide to clients a brochure titled, Marriages Family’s and Separation which deals with this and provides details of Arbitration.
The only limitation placed on Arbitration is that it cannot deal with child support issues and is unable to make binding Orders in regard to a child’s welfare. Parenting matters can be discussed, during the course of Arbitration and an agreement may be reached by the parties in regard to such matters.
The parties if they reach an agreement on parenting issues during the course of Arbitration can have that agreement set out in a Parenting Agreement or can apply to the Court for Orders to be issued by way of Consent Orders. The Award of the Arbitrator if it is to be registered with the Court and to issue as a binding Agreement, is limited to property settlement and spousal/defacto maintenance issues.
