News

The rising cost of family arbitration and what it means for clients

Written by Nigel Shepherd | Aug 18, 2026, 10:41:27 AM

This article is provided for information purposes only and does not constitute legal or financial advice.

The rising cost of family arbitration and what it means for clients

The most recent figures published by the Institute of Family Law Arbitrators show that the number of arbitrations in family law cases doubled between 2023 and 2025.¹ Arbitration was introduced in 2012 for financial aspects of family breakdown and extended to children cases in 2016.

Even so, arbitration still sits outside the mainstream conversation in many family law disputes, despite offering something the court system often struggles to provide consistently, namely speed, flexibility and greater control over timing.

That feels increasingly relevant given the continuing pressure on the courts. Hearings are delayed, timetables stretch and clients can find themselves carrying uncertainty for far longer than expected. Quite often, by the time arbitration is finally discussed, frustration around the pace of proceedings has already become part of the wider issue.

The changes to the Family Procedure Rules introduced in 2024 have almost certainly accelerated interest in arbitration by strengthening the obligation on parties and lawyers to explore Non Court Dispute Resolution (NCDR) before continuing through litigation.

Delay often increases both pressure and cost

One of the biggest problems with prolonged proceedings is that delay rarely remains neutral. As matters continue, positions can become more entrenched while legal costs steadily build in the background.

There can still be hesitation around arbitration itself, largely because many clients automatically associate family disputes with going to court. Questions also arise around how arbitrators are selected or whether arbitration feels less formal than litigation.

Those concerns usually ease once the process is properly explained.

Arbitration allows parties to appoint an arbitrator directly and move towards resolution according to a timetable suited to the case itself rather than waiting indefinitely for court availability.

For many clients, that alone can materially improve the overall experience of proceedings.

The recent formation of the Family Law Arbitrators Group (FLAG), an affiliation of arbitrators who are also members of the family justice organisation Resolution, also reflects wider efforts within the profession to improve awareness and understanding of the process.

The cost argument often misses the bigger picture

Cost remains one of the most common objections to arbitration because the arbitrator has to be paid directly.

However, the wider financial impact of lengthy proceedings is often overlooked. Ongoing legal work, updated disclosure, expert evidence and continued correspondence all increase as cases move slowly through the system.

Where mediation, collaborative practice or negotiation have not resulted in agreement, arbitration can often provide a much quicker route towards resolution and, in many situations, the reduction in ongoing professional costs will outweigh the arbitrator’s fee.

Litigation funding fits alongside arbitration in much the same way as it does with court proceedings.

Untangled can lend for arbitration within financial remedy matters and children cases linked to financial remedy proceedings, whether arbitration is chosen at the outset or later during the case. The funding can include legal fees, expert fees and the cost of the arbitrator as part of the overall facility.

As pressure on the family court system continues, arbitration is becoming far more difficult to dismiss as a niche option. For many clients, it is increasingly offering a more manageable route through an already difficult situation.

By Nigel Shepherd, Family Law Specialist at Untangled