Mediation is a dispute resolution process in which a neutral third party helps negotiations between or among two or more parties in conflict. The mediator assists the parties in reaching their own solution by facilitating the exchange of information and exploring options in a setting that assists in resolving the dispute.

The mediator helps to manage the negotiation process by:

• Identifying, clarifying, and exploring the issues and each party's underlying interests,

• Managing the expression of strong emotions in a way that is productive and not destructive,

• Equalizing, to the greatest extent possible, any power imbalances between the parties,

• Identifying joint interests and agreements in principle,

• Assisting the parties in exploring and evaluating possible settlement options,

• Helping to "reality-test" possible settlement options against procedural, psychological, and substantive interests, as well as against alternatives to a mediated settlement, and

• Developing and implementing a final agreement.

The mediator is neutral and does not have decision-making authority regarding the possible settlement of the dispute. Mediation is not arbitration.

Mediation can be a supplement to an existing legal process; if no agreement is reached through mediation, the legal system remains available.

We would like your feedback on this Personal Finance Frequently Asked Question.