The use of arbitration to resolve financial disputes following divorce in England and Wales has accelerated rapidly, signalling a fundamental shift in how separating couples navigate an increasingly stretched family justice system. What was once viewed as a specialist or niche option is now emerging as a mainstream route for resolving financial matters outside the courts.
Recent years have seen a marked rise in the number of couples opting for arbitration, with figures more than doubling since 2023. This growth reflects both systemic pressures within the court system and a growing awareness among practitioners and clients of the practical advantages of Arbitration. It offers a more streamlined and flexible alternative to traditional litigation.
A significant driver of this trend has been the introduction of procedural changes in 2024, requiring parties to engage with alternative dispute resolution before issuing court proceedings. While intended to ease pressure on the courts, this shift has also prompted a broader reassessment of how financial disputes are best resolved. For many couples, arbitration has proven to be not merely a procedural hurdle but a preferable endpoint.
At the same time, reductions in court time allocated to complex financial cases have further reinforced this movement. With judicial resources increasingly prioritised for disputes involving children, high-value financial cases are often subject to delay. Arbitration offers a means of bypassing these bottlenecks, allowing parties to progress at a pace aligned with the complexity and urgency of their dispute.
London’s long-standing reputation as a forum for high-value divorce litigation provides important context. Since a landmark ruling at the turn of the century established a starting point of equal division of marital assets, the jurisdiction has attracted complex and often international cases. While the courts continue to play a central role in shaping family law principles, arbitration is increasingly being used to apply those principles efficiently and discreetly in individual cases.
Importantly, arbitration is not confined to ultra-high-net-worth disputes. While cases involving nine-figure sums are now being resolved through this route, the process is equally adaptable to more modest financial claims. Its flexibility allows parties to select decision-makers with appropriate expertise and to structure proceedings proportionately, making it a viable option across a broad spectrum of cases.
Another notable development is the growing inclusion of arbitration clauses in pre- and postnuptial agreements. This reflects a broader trend toward proactive dispute planning, enabling couples to agree in advance on how financial issues will be resolved if their relationship ends. For clients, this can provide certainty and reassurance; for practitioners, it underscores the importance of early, strategic advice.
Speed and privacy remain central attractions. Chronic underfunding and resourcing challenges within the court system have led to prolonged delays, particularly in complex financial disputes where final hearings may take years to reach. Arbitration can significantly reduce this timeframe, thereby limiting both emotional strain and financial costs.
As pressure on the family justice system continues to intensify, arbitration is no longer a niche alternative but an essential part of the modern dispute-resolution landscape. Its growth reflects a broader shift towards autonomy, efficiency and privacy in family law, empowering separating couples to resolve financial matters with greater control and certainty.
For practitioners, the challenge now is not whether arbitration should be considered, but how early and effectively it is integrated into strategic advice, ensuring clients are equipped to navigate separation in a way that minimises conflict, delay and cost.
