Mediation and arbitration are both alternative methods of resolving disputes sometimes known as Alternative Dispute Resolution. In mediation, you and your spouse sit down with an impartial third party (referred to as the mediator) to attempt to reach a settlement that is suitable to both parties. In arbitration, you and your spouse have a hearing in front of an impartial lawyer (referred to as the arbitrator) to seek a ruling on all issues that are before the arbitrator. The ruling of the arbitrator is legally binding, just as if done by a judge, unless you appeal the decision to the Circuit Court. Arbitration will require the services of an attorney.
Most counties require that parties seeking divorce go through mediation on issues of child custody and parenting time prior to going through a trial. The cost for court-ordered mediation is paid for by the filing fees of the parties and the court-ordered mediation is only to resolve issues of child custody and parenting time.