What Happens During Divorce Arbitration in New Jersey?
Divorce doesn't always have to involve long courtroom battles and escalating legal fees. In New Jersey, many couples are choosing divorce arbitration as a faster, more private way to resolve disputes when a marriage ends. Arbitration allows spouses to resolve specific divorce-related issues without the delays and formality of trial litigation.
Unlike mediation, which aims for mutual compromise through discussion, arbitration relies on a neutral third party—known as an arbitrator—who hears both sides of the case and makes a binding decision. It’s a structured yet flexible process that offers privacy, efficiency, and control over scheduling. For many divorcing couples, this method strikes the right balance between fairness and finality.
Step 1: Agreeing to Use Arbitration
The first requirement in the arbitration process is mutual consent. Both spouses must sign a written agreement to arbitrate. This agreement outlines what issues the arbitrator will address, whether the arbitrator’s decision will be final and binding, and what procedural rules will apply.
Divorce arbitration in New Jersey is commonly used to settle issues such as:
- Equitable distribution of marital assets
- Alimony or spousal maintenance
- Division of debt and liabilities
- Disputes involving retirement accounts or real property
Although child custody and parenting time can be part of arbitration discussions, final decisions on these matters remain under the court’s jurisdiction. Arbitration can be used to make recommendations, but the court must ultimately approve anything that affects a child’s welfare.
Step 2: Selecting an Arbitrator
Once both parties commit to arbitration, the next step is selecting an arbitrator. This person acts similarly to a private judge. Arbitrators are typically retired judges or seasoned family law attorneys with extensive experience in divorce and dispute resolution. Choosing someone impartial and knowledgeable is key to ensuring a fair outcome.
Both parties usually have input on the selection and may even review multiple candidates before making a decision. In some cases, the arbitration agreement will outline how to handle disagreements about the selection process—for example, using a list of pre-approved arbitrators or designating a third-party service to assign one.
Because the arbitrator plays such a significant role, it’s crucial to select someone who understands New Jersey family law and has a proven track record for objectivity and professionalism.

Step 3: Preparing for the Hearing
While arbitration is less formal than a trial, it still requires careful preparation. Each spouse, often working with an attorney, will gather and submit documentation related to the disputed issues. This may include:
- Detailed financial affidavits
- Appraisals of property and business assets
- Bank records, tax returns, and investment statements
- Proposals for support or asset division
Attorneys may also prepare witness lists and outline their legal arguments in advance. Although arbitrators are more flexible than judges, they expect a well-organized presentation of the facts. The more thorough the preparation, the smoother the hearing will be—and the better your chances of a favorable decision.
Step 4: Conducting the Arbitration Hearing
The arbitration hearing is the core of the process. Unlike court trials, which are held in public venues, arbitration takes place in private conference rooms or offices. This ensures confidentiality and reduces the emotional stress that often comes with courtroom appearances.
Each side has the opportunity to present their case through opening statements, witness testimony, documentary evidence, and closing remarks. The arbitrator may ask questions at any time to clarify the facts or legal points. In many cases, spouses are not required to testify unless they choose to or the arbitrator requests it.
The process typically unfolds like this:
- Opening remarks by each attorney
- Submission and explanation of financial records
- Testimony from the spouses and any relevant witnesses
- Cross-examination, if necessary
- Closing arguments and proposed outcomes
Depending on the complexity of the case, a hearing might last a single day or be spread over multiple sessions. Scheduling is often more flexible than court, making arbitration a practical solution for busy professionals or high-conflict couples.
Step 5: Receiving the Arbitrator’s Decision
Once the hearing concludes, the arbitrator reviews all evidence and delivers a written decision, also called an “award.” If the arbitration agreement states that the decision is binding, it becomes legally enforceable and can be entered as part of the final divorce decree.
In binding arbitration, the decision is final—there is generally no right to appeal unless there’s clear evidence of fraud, corruption, or a serious procedural error. This sense of closure is one of the key reasons people choose arbitration. It offers a faster resolution than waiting for a judge’s ruling, which can take months depending on the court’s backlog.
If the arbitration is non-binding, either party can reject the award and request a trial. However, many non-binding arbitrations still result in mutual acceptance, especially if both sides believe the arbitrator was fair and impartial.
Why Arbitration May Be the Right Choice
For couples seeking a more personalized and less adversarial experience, divorce arbitration offers several important advantages:
- Privacy: Proceedings are confidential and held outside of public courtrooms.
- Efficiency: Cases often resolve within weeks instead of dragging on for months.
- Control: Spouses have input on the arbitrator, the schedule, and even the rules of evidence.
- Reduced Conflict: The process encourages a more civil tone than traditional litigation.
- Expertise: You can choose an arbitrator with in-depth knowledge of complex divorce law.
Of course, arbitration isn’t ideal for every situation. If there’s a history of domestic abuse, extreme power imbalances, or serious child custody concerns, the traditional court process may offer stronger protections and more oversight. That’s why it’s critical to discuss your specific circumstances with a family law attorney before deciding.
At Dwyer Bachman, we help New Jersey couples make informed decisions about how to resolve their divorce issues. Whether you’re pursuing arbitration, mediation, or courtroom litigation, our legal team is ready to advocate for your goals and protect your future. If you’d like to learn more about how arbitration can help settle your divorce efficiently and fairly, contact us today.

