Arbitration Possible in Divorce Property Division, but Legal Amendments Needed for Practical Use

Published 14 Apr.2026 16:06(KST)

Just as arbitration has become established as an alternative to litigation in property division cases abroad, there is growing anticipation in Korea for utilizing arbitration in similar contexts. Some argue that, since there are no explicit prohibitions, arbitration could be possible during divorce negotiations if both parties agree to it (see The Law Times, April 6, 2026, page 21). Most experts agree that, although the possibility is not completely closed from a legal interpretation standpoint, legislative action should precede for the system to be practically utilized.

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The current Family Litigation Act grants exclusive jurisdiction over family cases, including divorce and property division, to the family court. However, Kyungcheon Uhm (34th Judicial Research and Training Institute class), managing partner at Family Law Firm, expressed in a contribution to The Law Times that arbitration in property division cases is possible within the current legal framework.

He stated, "If the parties to a divorce agree to have an arbitral award regarding property division, arbitration is possible under current law." He explained that the exclusive jurisdiction provision in the Family Litigation Act only determines jurisdiction when a lawsuit is filed, and should not be interpreted as prohibiting arbitration as a method of agreement between parties.

Most experts agree that, while the legal interpretation does not entirely preclude the possibility, legislative amendments are necessary for practical application.

A high court judge commented, "In principle, family legal relationships are not subject to arbitration, and in reality, the possibility of utilizing arbitration is low, which is the majority view." However, the judge added, "Since the area of property division has not been deeply covered in textbooks or academic papers, it is difficult to categorically deny the legal possibility."

Hyungon Lee (29th class), attorney and former family court judge, emphasized, "Proper introduction of family arbitration ultimately requires legislation." He pointed out, "The Korean Commercial Arbitration Board, which mainly handles commercial cases, lacks the expertise to conduct investigations into child-rearing environments or psychological procedures, which are unique to family cases." He also noted, "If only property division is separated out for arbitration, issues of fairness in terms of cost and accessibility may arise."

Hosik Choi (27th class), managing partner at Wooseung Law Firm and former chief judge of the Seoul Family Court, also explained, "Judicial divorce concerns personal status, so it falls under the exclusive jurisdiction of the family court." He stated, "While it is theoretically possible for parties to enter into a separate arbitration agreement solely for property division, it is very difficult to find actual cases in Korea, and the practical feasibility is extremely low." He added, "Arbitration requires an arbitration agreement, but once the marriage has broken down or a divorce is underway, it is difficult to establish a new arbitration agreement solely for property division."

Sanghoon Kim (33rd class), managing partner at Trinity Law Firm, commented, "An arbitral award is close in nature to a court judgment, so it would not be easy for the court to simply dismiss it as a mere agreement." He continued, "Ultimately, the advantage of arbitration—speed—would be undermined, making its practical benefit limited."