How does divorce arbitration work?

Divorce arbitration is sometimes confused with mediation, but there is an important difference between the two. Though both processes involve a neutral third-party witness and observer, in mediation this person has no power to pass judgment on the divorce terms. However, in arbitration, the third-party person, also known as the arbiter, has the power to make a legal decision regarding the divorce settlement terms and agreement. As such divorce arbitration may be a better option that mediation for couples that anticipate having some disagreement of certain issues.