On July 8, 2025, the Michigan Court of Appeals issued a new divorce arbitration opinion entitled Townsend vs. Townsend. If a case cannot settle, a judge typically makes a decision. Divorce arbitration is an alternative to trial and the Arbitrator’s decision is binding. The parties to a divorce may agree to hire a private attorney to act as the divorce judge and make all decisions regarding the case and the trial court will enforce the decisions. While it is not uncommon for parties to agree to arbitrate a case to maintain privacy or efficiency purposes, however, the decision to arbitrate a case must be a voluntary decision. As for the Townsend family, the court made an error in requiring the parties to arbitrate certain issues.
Michigan has Domestic Relations Arbitration Act that governs how arbitration works with specificity.
Michigan Compiled Laws (MCL 600.5072) sets forth specific requirments that must be included in an Arbitration Order, such as the notion that arbitration is volunatary, the rights to appeal are limited and the requirement for a specific written arbitration agreement setting forth how arbitration will proceed.
In the Townsend case, the parties proceeded to trial before the judge. At the conclusion of the case, the Judge ordered the parties to make a list of disputed property and submit the dispute to arbitration. Ms. Ms Townsend asked the Michigan Court of Appeals to revisit the Arbitratior’s order that the parties go to arbitration. She also requested a reversal of the trial court’s determination denying spousal support and attorney fees
The Michigan Court of Appeals reversed the trial court’s decision to force the parties to arbitrate personal property disputes simply because the parties did not agree to do so under MCL 600.5072(1). There is no authority for a trial court to order parties to arbitration. MCL 600.6072(1) provding in pertinent parts:
(1) The court shall not order a party to participate in arbitration unless each party
to the domestic relations matter acknowledges, in writing or on the record, that he
or she has been informed in plain language of all of the following:(a) Arbitration is voluntary
….
Remarkably, the Court of Appeals not only reversed the trial court’s order for the parties to arbitrate personal property disputes, it also reveresed and remanded (sent the case back to the trial court to correct errors) regarding its denial of spousal support award and attorney fees.
Arbitration is useful in many cases, however, the choice to arbitrate a case must be a voluntary and informed decision. Restated, a trial court cannot order a case to divorce arbitration unless the parties agree to do so under Michigan’s Domestic Relations Arbitration Act.
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By: Daniel Findling (c) 2025.
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