Binding Arbitration is a process whereby both parties present their case to an independent decision maker who personally resolves their disputed issues.
Advantages to Binding Arbitration
a. By involving what is essentially a “private judge,” the parties retain control over the process and timetable of the case.
b. While it is an adversarial process similar to litigation, this process preserves the privacy of the parties to a greater degree than litigation in open court.
c. In cases with tax concerns or other issues of financial propriety that the parties cannot present to a judge, binding arbitration provides a more attractive forum for resolving the case.
Disadvantage to Binding Arbitration
a. Unlike Collaborative law or mediation, it is an adversarial process. Rather than working together towards a mutual agreement, the parties present their evidence to an independent decision maker, as adversaries. This approach can often have a negative effect on the relationship of the parties.
b. As with all alternatives to litigation, the financial disclosures made by the parties will not be subjected to the same scrutiny for falsity or omissions.
c. There is no opportunity to present testimony from third parties.
d. The parties will lose the financial protections and right to seek orders in the litigation as described above.
e. The parties surrender the power to lay out the terms of the agreement, losing the option of designing creative and more thoughtful solutions that may benefit them both.
f. There are limited rights to appeal the arbitrator’s decision.
g. In addition to attorney fees, the parties must pay the arbitrator.
A prenuptial agreement is designed to protect assets such as your home, investments, business, or inheritance. Properly drafted, a prenuptial agreement can ensure that your personal assets are not subject to equitable distribution in the event of a divorce. In addition, a prenuptial agreement can reduce the length and cost of potential divorce battles by outlining assets and settlements ahead of time.
In order for a prenuptial agreement to be deemed legally valid, it must meet specific criteria. Both parties must obtain their own legal counsel for representation when negotiating the agreement, and all prenuptial agreements must be voluntarily entered into with adequate time to evaluate the terms of the agreement. Finally, both parties must completely disclose all of their assets within the agreement. Prenuptial agreements that do not clearly meet all three criteria are not valid in the State of New Jersey, therefore it is imperative you have experienced counsel to guide you through the process.