What Is Arbitration and How Does It Work?

August 23, 2025

What Is Arbitration and How Does It Work?

When couples create a prenuptial (prenup) or postnuptial (postnup) agreement, one of the most important terms they can include is an arbitration clause. But what exactly is arbitration, and why does it matter?

1. Arbitration Is a Private Alternative to Court

Arbitration is a legal process where disputes are resolved outside of the courtroom. Instead of going before a judge, both parties agree to have a neutral third party—called an arbitrator—hear their case and make a decision. This decision, called an award, is legally enforceable in U.S. courts, just like a court judgment.

2. Why Choose Arbitration Over Court?

Going to court can be stressful, expensive, and time-consuming. Arbitration offers many benefits:

Saves time by avoiding long delays in the court system.

Saves money with lower legal costs and quicker resolutions.

Protects privacy since proceedings are confidential, unlike public court records.

Reduces conflict by creating a less adversarial environment than a courtroom battle.

3. How the Process Works

Agreement in Advance: The couple includes an arbitration clause in their prenup or postnup, committing to resolve disputes this way.

Choosing an Arbitrator: Both spouses select a neutral arbitrator or arbitration council. For Muslim couples, this often means choosing someone who understands Islamic values as well as American law.

Hearing the Case: Each side presents their perspective, and the arbitrator carefully considers both.

Final Decision: The arbitrator issues a decision that is legally binding and enforceable.

4. Arbitration Rooted in Islamic Values

For Muslim couples, arbitration provides more than just efficiency—it brings peace of mind. It ensures that any resolution is aligned with Islamic principles rather than solely secular values, helping couples feel confident that their outcome is not just legally sound but also spiritually meaningful.

This alignment can bring barakah (blessings) into the resolution, in shā’ Allāh. By handling disagreements in a way that reflects faith, couples can move forward with clarity and reassurance, knowing they honored both their legal responsibilities and their religious commitments.

5. Why Include Arbitration in Your Prenup or Postnup

Without an arbitration clause, any disagreement—about mahr, finances, or other commitments—would be decided in state court alone. By including arbitration, you ensure your values remain at the center of the process, and that your marriage is protected both legally and spiritually.

Conclusion

Arbitration offers couples the best of both worlds: legal enforceability in the United States and fidelity to Islamic principles. At Bayaani, we help you design prenups and postnups that include arbitration provisions—so you can safeguard your rights, protect your marriage, and in shā’ Allāh, invite blessings into your resolution.