Personal property arbitration is a form of ADR used to resolve disputes specifically related to personal property. Personal property refers to movable items that are owned by individuals or entities, such as furniture, vehicles, jewelry, artwork, and other tangible assets.

Arbitration is a process where the parties involved in a dispute agree to submit their case to one or more impartial arbitrators. The arbitrators act as private judges who review the evidence, hear arguments from both sides, and make a binding decision, known as an arbitration award, to resolve the dispute. The arbitration process is typically less formal and more flexible than a court trial.

In the context of personal property disputes, personal property arbitration provides a streamlined and efficient method to resolve disagreements over ownership, possession, value, condition, or any other issues related to personal property. It is often used in cases where parties prefer a private resolution and want to avoid the time, expense, and formalities associated with traditional litigation.

The process of personal property arbitration generally involves the following steps: executing the Agreement to Arbitrate, selecting the Arbitrator, and attending the arbitration hearing.

After considering the evidence and arguments presented, the arbitrator issues an arbitration award, which is a final and binding decision on the parties. The award resolves the dispute and may include determinations on ownership, valuation, division, or any other relevant issues.

Once the arbitration award is issued, it is enforceable by law, and the parties are obligated to comply with the decision.

Personal property arbitration offers several potential benefits, including confidentiality, flexibility in scheduling, and the ability to choose an arbitrator with expertise in the specific area of personal property at issue. It can be particularly useful in cases where the parties value privacy, want a faster resolution, or prefer a decision-maker who has specialized knowledge in the subject matter.

When parties are in a process where there may be three or more professionals “on the clock” (respective counsel, the neutral, etc.) dividing property is typically not an effective use of everyone’s time and money. Rather, the parties, should they resolve most other issues, can be given an opportunity to equitably divide their personal property on their own within a specific time frame. Any issues that remain after that deadline can then be submitted to binding arbitration, where the arbiter will hear each side’s reasons as to why they should retain certain property, and then decide, as a court would, who keeps what.