Mediation & ArbitrationCost-Effective Solutions

Mediation & Arbitration: Affordable Paths to Resolution

Various dispute resolution methods are available to separating couples’, each offering distinct approaches to resolving family law matters like divorce, division of family property, parenting, or child and spousal support and more. 

The Challenges of Traditional Litigation

While litigation is often the first avenue people consider for resolving family disputes, it's not always the most efficient or effective solution. Unfortunately, our justice system is overloaded and backlogged and there are long delays in getting matters heard which ends up dragging out the resolution process for months or even years. More importantly, for most separating couples, the cost of litigation is an important factor as the cost of legal representation can be restrictive.

According to the 2021 Legal Fees Survey by Canadian Lawyer magazine, the national average cost for a 5-day family law trial is approximately $43,500.1

Streamlined and Cost-Conscious Solutions

In mediation, separating couples hire an independent third-party mediator to help resolve their disputes. The cost of the mediator is often shared between the parties thereby reducing fees to both. There are quality lawyers that provide mediation services in the range of $300 per hour, which when divided by two parties, is half the cost. When compared to each party retaining their own lawyer in the range of $250 to $800 per hour, per party, mediation is proven to be a cost-effective option.

In arbitration, separating couples also hire an independent third-party to help resolve their disputes. However, that party is an arbitrator who is hired to make a decision on the legal issues brought before them. Any decision rendered by the arbitrator is binding on the parties. The cost of the arbitrator is often similarly shared between the parties.

Though similar, the biggest difference in cost between mediation and arbitration is any extra time needed to prepare for sessions, formalities as part of the arbitration hearing, or following the sessions to write a decision. To clarify, it is often the case that the parties will file documents with the arbitrator, who is then responsible for reviewing the parties' submissions in advance of any arbitration hearing. During any arbitration hearing, the arbitrator may take additional time to allow the parties to provide oral evidence, witnesses or experts may be called, and there may be questions throughout to ensure the arbitrator has a firm grasp of the issues to be resolved. At the end of the arbitration hearing, the arbitrator must also prepare a formal written decision, which is often comprehensive and may, in more complex cases, require legal research to support their decision. In comparison, mediation is in the parties' hands. The mediator is there to help facilitate a conversation between the parties, who are ultimately responsible for agreeing. The mediator may take extra time to write minutes of settlement or notes from the mediation, but it is more often just a summary of what was discussed and does not require lengthy research or reasoning for any decision.

Calculation Of Mediation Fees Per Party

The length of the mediation depends on the parties and their issues. Generally, mediation is faster than other forms of dispute resolution.

Calculation of Arbitration Fees Per Party

Arbitration costs can vary significantly depending on several factors, such as the involvement of counsel, the extent and complexity of the legal issues at hand, and how the arbitration process unfolds. Like mediation, our arbitrators bill in 6-minute increments at their respective hourly rates. Visit our team page to learn more about our arbitration services and to view each provider’s hourly rate.

Separating couples can retain their own family lawyer to accompany them in mediation or arbitration, provided the parties agree. While this does result in additional costs, as they must pay for both the mediator or arbitrator and their respective lawyers' time, either option remains more efficient and cost-effective compared to court for resolving family law conflicts. Having independent counsel also allows the parties to receive immediate legal advice and assists in reaching a quick resolution while everyone is at the same table.

Our Approach

Traditional litigation can be time-consuming and expensive, sometimes exacerbating conflicts rather than resolving them. On the other hand, alternatives like mediation or arbitration stand out as a streamlined, cost-effective options for resolving family law disputes. With the cost of a skilled mediator or arbitrator typically shared between the parties, these alternative dispute pathways are quite often more affordable than traditional methods.

For a FREE consultation to resolve your family law dispute, don't hesitate—contact us today to learn more.

Book Your Consult Today

Interested in another form of alternative dispute resolution? Learn more about collaborative divorce.

References:
1. https://www.canadianlawyermag.com/news/features/2021-legal-fees-survey-results/362970