Family arbitrations require an Arbitration Agreement between the parties and their arbitrator. Parties must have independent legal advice on such agreements before starting, and the arbitrator has the responsibility to ensure that both have been screened for suitability first.
Parties choosing arbitration are often seeking the benefits of confidentiality, as well as the ability to choose the decision-maker about important matters in their lives.
Arbitration processes can be designed to be quicker and less formal than a typical court hearing, which can reduce expense and time. However, private arbitrators are paid by the parties, and they also must pay for their own court reporter (if they choose to have one), which can increase costs.
Arbitration is generally not appropriate in cases of extreme power imbalance, or where one party is afraid of the other.