Arbitration is a process where a neutral third party decides the outcome of a claim. Whether it's good or bad for you depends on your case.(a) All arbitration agreements shall be in writing. Arbitration is a commonly used form of alternative dispute resolution (ADR). ADR is a process for resolving disputes outside of the public court system. Put simply, arbitration is alternative dispute resolution in the divorce process. It saves you from going to the final trial. Arbitration, a form of alternative dispute resolution, is a formal process for resolving disputes without going to court. Typically, an arbitration clause is located towards the end of a contract. If the contract does contain the clause you may proceed to step 2.