Posted 3 years ago
There are methods other than litigation to resolve matrimonial disputes. The North Carolina Family Law Arbitration Act is a comprehensive act used to address the unique issues of family law arbitration. The Family Law Arbitration Act permits parties, by agreement, to arbitrate all issues arising from a marital separation or divorce while still preserving certain rights. It is important to understand that only by an agreement, contract or consent order may parties create an obligation to arbitrate issues in a case. Arbitration is not available to parties contemplating marriage or those involved in same-sex or live-in relationships. While the issues to be arbitrated must arise out of a marital relationship, the agreement to arbitrate can be signed before, during or after the parties are married.
People will seek to resolve their disputes through arbitration over going to court for a number of reasons, including but not limited to: arbitration is often faster than litigation; arbitration can be cheaper and more flexible when dealing with ownership interests in businesses; when the subject matter of a dispute is highly technical and it would be advantageous to appoint an appropriate degree of expertise; among other reasons. However, there are some disadvantages to electing arbitration, such as the parties waiving their rights to access the courts and having a judge or jury decide their case; and discovery may be more limited in arbitration, depending on how the scope is defined in the contractual agreement.
It is important for parties to consider all possible options when drafting agreements and to consider all avenues when deciding how to resolve disputes, given that the decision made by an arbitrator or a court of law could be permanent.
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