When they are written well, prenuptial agreements are legally binding contracts that specify how a couple’s finances, at least in part, will be handled in a divorce. While most people have signed arbitration clauses in contracts like user agreements (often included in the fine print that nobody reads), those same people may be surprised to learn that arbitration agreements can also be included in an Illinois prenuptial or postnuptial agreement.
Arbitration can be beneficial for many reasons, most of which are similar to the purpose of the pre- or postnuptial agreement itself: Avoiding protracted courtroom hostilities and ensuring parties can reach a resolution on important financial issues in the event of a divorce. If you are considering a prenup, continue reading to learn more about how an arbitration clause may benefit you.
What is Arbitration and How is it Different from Mediation?
While arbitration and mediation have some things in common, they are not the same. Arbitration is a process through which facts that are under dispute are investigated and judgment is rendered by a neutral third-party arbitrator. The arbitrator has the power to decide the outcome and his or her judgment is legally binding. Divorcing spouses involved in arbitration present evidence and testimony under oath, with very little room for emotional venting or creative problem-solving....