Many Pennsylvanians who are going through a divorce or are engaged in a custody dispute would prefer to the avoid the time, cost and loss of privacy associated with litigation. Often, parties are able to achieve mutual agreement on their own through negotiation, or by retaining a neutral mediator. Unfortunately, there are circumstances where spouses or co-parents cannot reach a settlement, but still are wary of battling in court. A new state law now gives residents in this situation a viable alternative. 

Pennsylvania recently adopted the Family Law Arbitration Act (FLAA), which allows decisions relating to custody, child support, alimony and property division to be made by a qualified third party. The FLAA helps spouses and co-parents to maintain more control over the dispute resolution process, helping everyone move on more quickly and less expensively. 

Under the FLAA, the parties involved select a neutral arbitrator to review their case and make binding decisions. Unlike mediation, where the parties work together to reach a voluntary agreement, arbitration results in a decision made by the arbitrator, much like a judge in court. The advantages over litigation are that arbitration offers flexibility in terms of scheduling and enables parties to avoid the often-overburdened court system.

Important aspects of the new law include the following:

• No legal status changes — While an arbitrator can issue a decision relating to the parenting and financial terms of divorce, courts still have the exclusive power to dissolve a marriage and grant other legal status changes, such as the adoption of a child. 

• Use of Pennsylvania substantive law — As in a court, the substantive law of Pennsylvania must be applied in an arbitration under FLAA. 

• Arbitrator and scope determined by parties — Both parties must agree on who will arbitrate the case and the specific issues that the arbitrator will decide. 

• Procedural appeals — In most cases, parties will only have the opportunity to make a procedural appeal of an arbitrator’s ruling. This means a challenge must allege that the arbitrator violated a rule, such as failing to apply Pennsylvania substantive law. Disagreement with the outcome is not grounds for appeal except in cases of child-related awards. 

While arbitration offers many advantages, it is not suitable for every family law case. In highly contentious disputes or relationships where one party holds substantial power over the other, it might be preferable to litigate under the court’s oversight.   

At Chan & Associates in Lancaster I work closely with Pennsylvanians to identify the best method of resolving the terms of their divorce, custody matter or other family law concern. To make an appointment regarding your particular legal needs, please call 717-869-0015 or contact me online.