What Is Divorce Arbitration?
When a marriage ends, not every couple wants to wage a battle in the courtroom. For many families in Charlotte, divorce arbitration offers a more private, efficient, and cost-effective way to resolve disputes—without the stress of traditional litigation.
Divorce arbitration is a form of alternative dispute resolution (ADR) where a neutral third-party arbitrator—often an experienced attorney or retired judge—acts much like a private judge. Both spouses agree to present their cases outside of the courthouse in a setting that is structured, but far more flexible than formal litigation.
At The Goodman Law Firm, we know that court battles can be emotionally and financially exhausting. Divorce arbitration offers a meaningful solution when you and your spouse are ready to move forward but need help finalizing the details—especially when it comes to asset division, spousal support, or business ownership concerns.
Why Choose Arbitration Over Court?
- Confidentiality: Arbitration proceedings are private. Unlike court records, which are public, what’s discussed in arbitration stays behind closed doors.
- Cost-Efficiency: Because the process typically avoids the lengthy timelines and procedures of court, clients often spend less on legal fees and related expenses.
- Faster Resolutions: Arbitration allows for flexible scheduling and faster timelines, helping you avoid the delays often seen in the family court system.
Is Divorce Arbitration Binding in North Carolina?
Yes—divorce arbitration is generally binding in North Carolina, which means the arbitrator’s decision carries the same legal weight as a judge’s ruling. However, parties can agree in advance to pursue non-binding arbitration if they wish to maintain the right to challenge or reject the decision afterward. At The Goodman Law Firm, we walk you through these distinctions so you can make the best decision for your unique situation.
Whether you're looking to preserve your privacy, protect your children from courtroom conflict, or simply streamline the divorce process, arbitration may be the right path forward. And you don’t have to navigate it alone.
How Divorce Arbitration Differs from Mediation and Litigation
When deciding how to handle your divorce, it’s important to understand the different paths available. Divorce arbitration is often misunderstood, especially in comparison to mediation and traditional litigation. Each method offers its own approach to resolving disputes—what matters is choosing the one that fits your family’s needs, goals, and level of conflict.
Arbitration vs. Mediation
Both arbitration and mediation fall under the umbrella of alternative dispute resolution (ADR), but they operate very differently.
- Mediation is collaborative and non-binding. A mediator facilitates conversation and negotiation between spouses, helping them reach mutual agreements. The mediator doesn’t make decisions—you and your spouse retain full control over the outcome.
- Arbitration is more formal and can be binding. In arbitration, the neutral arbitrator hears evidence and makes a decision on disputed issues—just like a judge would in court. Unless the parties agree otherwise, the arbitrator’s decision is final and legally binding in North Carolina.
If you and your spouse are on relatively good terms and want to maintain control over the outcome, mediation might be the right choice. But if negotiations have stalled or you need someone to make a final decision on your behalf, arbitration can provide clarity and closure without stepping into a courtroom.
Arbitration vs. Litigation (Court)
While both arbitration and litigation involve legal decision-making, there are key differences in the process, privacy, and control.
- The arbitrator acts as a private judge. You and your spouse select the arbitrator, giving you a say in who hears your case—something you don’t get with a judge in court.
- Arbitration allows for more scheduling flexibility. Instead of waiting months for a court date, arbitration sessions are set around your schedule and can move much more quickly.
- Limited appeals if the decision is binding. Just like a court ruling, a binding arbitration decision is enforceable and difficult to overturn. This finality can be helpful for spouses who want to avoid prolonged legal battles.
At The Goodman Law Firm, we help clients in Charlotte and surrounding areas understand the pros and cons of each path—so you can make the right decision with confidence and support.
What Issues Can Be Handled in Divorce Arbitration?
Divorce arbitration can be a powerful tool for resolving many of the financial and property-related issues that arise during separation. While not every issue is eligible for arbitration under North Carolina law, many critical components of your divorce can be addressed without stepping into a courtroom.
Here’s what arbitration can help you resolve:
Property and Asset Division
Dividing marital property can get complicated—especially when real estate, retirement accounts, or valuable personal items are involved. Arbitration allows both spouses to present their case and supporting documentation, and the arbitrator issues a decision based on North Carolina’s equitable distribution laws.
Spousal Support (Alimony)
Determining if alimony should be awarded—and if so, how much and for how long—can be highly contested. In arbitration, you’ll have the opportunity to present financial disclosures and make your case in a private, structured setting. The arbitrator then issues a ruling, which can be binding and enforceable under state law.
Business Valuations
When one or both spouses own a business, dividing those assets becomes even more complex. Arbitration gives you the ability to involve neutral financial experts, streamline discovery, and reach a resolution with more flexibility than court litigation typically allows.
Debt Division
From credit card balances to mortgages and loans, dividing marital debt is just as important as dividing assets. An arbitrator can weigh each spouse’s financial position and obligations, then issue a decision on who is responsible for what—based on fairness and the facts of the case.
What Can’t Be Handled in Binding Arbitration?
It’s important to understand the limits of divorce arbitration in North Carolina. Under state law:
Child custody and child support generally cannot be finalized through binding arbitration.
These matters must either be agreed upon through mediation or decided by a judge in family court. This is because the state requires additional oversight to ensure decisions are made in the best interests of the child.
At The Goodman Law Firm, we guide you through which issues are eligible for arbitration and which must be handled through other means—giving you a comprehensive plan for resolution.
What to Expect During the Divorce Arbitration Process
If you're considering divorce arbitration, it helps to know exactly what the process looks like. While less formal than a courtroom trial, arbitration still follows a structured procedure designed to ensure fairness and finality. At The Goodman Law Firm, we walk with you through every step—so you're never left guessing.
Here’s a simple breakdown of what to expect:
1. Agreement to Arbitrate
Before anything begins, both spouses must sign a written arbitration agreement. This document outlines the scope of what issues will be decided, whether the decision will be binding or non-binding, and who will serve as the arbitrator. Once signed, the process is ready to move forward.
2. Choosing an Arbitrator
You and your spouse (or your attorneys) will select a neutral third-party arbitrator—typically a seasoned family law attorney or retired judge. Choosing the right arbitrator is important. You want someone with experience in North Carolina divorce law and a reputation for fairness.
3. Pre-Hearing Preparation
Each side gathers the documents, records, and witness testimony needed to support their case. This is similar to the discovery phase in court but often less formal and more streamlined. Written statements, expert evaluations (such as business valuations), and financial disclosures may all be submitted in advance.
4. The Arbitration Hearing
The hearing is typically held in a private office or conference room—not a courtroom. Both parties present their case, submit evidence, and may call witnesses. While arbitration is more relaxed than court, it still follows a structured format. Importantly, you maintain more control over the tone and flow of the process.
5. Decision and Award
After the hearing, the arbitrator reviews the evidence and issues a written decision. If the arbitration is binding, the decision becomes enforceable in court—just like a judge’s ruling. If it’s non-binding, both parties can choose whether to accept the decision or pursue litigation.
A Smarter, Calmer Way to Divorce
Divorce doesn’t have to mean courtrooms, conflict, or costly delays. If you're looking for a more peaceful, private, and efficient way to resolve your divorce, arbitration may be the right choice for you and your family.
At The Goodman Law Firm, we help clients across Charlotte and surrounding areas take control of their divorce process—without the added stress of litigation. Whether you're dealing with complex assets, business interests, or simply want a more dignified resolution, we're here to guide you every step of the way.
You don’t have to do this alone. Kara K. Goodman is ready to help you move forward with confidence and clarity.
Call or Message The Goodman Law Firm Today
- Phone: (704) 502-6773
- Email: Contact Us
- Address: 10020 Monroe Road, Suite 170-288, Matthews, NC 28105
- Hours: Monday – Friday, 9:00 a.m. – 5:00 p.m.
- Website: www.goodmanlawnc.com
We’re Here When You Need Us
Family law challenges can feel overwhelming, but you don’t have to face them alone. Let’s talk. Reach out today, and let’s take the next step together.

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