In Texas arbitration is a form of resolving disputes wherein divorcing spouses hire an arbitrator, usually a former judge, to hear both sides of the dispute and reach a binding decision. Arbitration is similar to litigation because both processes involve a type of judge who hears both sides of the dispute and then reaches a decision. Arbitration, however, is a private dispute resolution process that occurs outside the court room. Arbitration is typically quicker, more private and less formal.