California recently passed significant legislation—Senate Bill 940 (SB 940)—that family law professionals must thoroughly understand to stay effective and compliant in 2025 and beyond. While SB 940 primarily focuses on arbitration reforms, it also includes a small yet important provision related to mediation that could significantly impact family law practices and client perceptions.
Breaking Down SB 940: Arbitration and Mediation Implications
Enhanced Fairness in Arbitration Agreements
SB 940 addresses longstanding concerns regarding forced arbitration. It explicitly prohibits businesses from requiring Californians to arbitrate disputes out-of-state or under another state’s legal standards. This change ensures Californians receive fair treatment and protects their legal rights.
For family law professionals, this reform is particularly relevant when clients enter arbitration agreements within marital settlement agreements, prenuptial agreements, or third-party contracts. Keeping disputes within California jurisdiction reduces complications, legal expenses, and client stress.
Improved Access to Discovery in Arbitration
SB 940 modifies arbitration processes to closely mirror traditional court procedures, allowing more comprehensive discovery. In complex financial disputes, business valuations, or custody evaluations, improved access to evidence can lead to fairer arbitration outcomes.
Option to Choose Small Claims Court
Clients can now choose small claims court for certain disputes, even if existing arbitration agreements specify otherwise. This provides a cost-effective, accessible solution for simpler family law disagreements, potentially saving clients substantial legal fees and time.
New Mediator Certification by the State Bar
A notable aspect of SB 940 is its introduction of mediator certification by the State Bar of California. However, family law professionals must clearly understand—and communicate to clients—what this certification truly means:
- Certification Requirements: Mediator certification under SB 940 is not tied to experience, training, or qualifications beyond that apply to mediators in court-connected mediation programs. It also requires mediators to include a complaint process in their engagement agreements, allowing clients to report concerns such as perceived bias or lack of neutrality.
- Potential for Public Confusion: There is significant concern that certification might mislead the public, implying a standard of quality or expertise that the certification process may not provide. “Certified” under SB 940 means only that mediators offer a mechanism to file complaints—not that they have passed any rigorous quality assessments, and also requires adherence to the existing ethical standards that apply to court-based mediation.
- Pressure on Experienced Mediators: Veteran mediators may feel compelled to pursue certification simply to remain competitive, despite the certification lacking substantive professional standards beyond compliance with the broad ethical rules applicable to court mediators.
Comparing SB 940 Certification to Certified Family Law Specialist
Unlike SB 940’s mediator certification, the Certified Family Law Specialist designation has rigorous requirements for qualification, including extensive training, experience, and passing a specialized examination. Highlighting this contrast underscores the superficial nature of SB 940 mediator certification and clarifies why “certified” does not equate to “qualified.”
Recommendations for Family Law Mediators
Family law mediators and attorneys should proactively educate their clients about what SB 940 mediator certification entails—and what it does not. Clear communication can prevent misunderstandings and help clients make informed choices about selecting mediation professionals.
Practical Implications for Family Law Professionals
The reforms under SB 940 significantly influence client interactions, dispute resolution practices, and case strategies:
- Client Relationships: Transparent arbitration terms build trust, improving client satisfaction.
- Case Strategy: Clearer jurisdiction and arbitration standards reduce legal complexities.
- Client Education: Informing clients about mediation certifications helps maintain credibility and protects clients from misconceptions.
Preparing Your Practice for SB 940 Changes
Ensure your practice adapts proactively:
- Update Documentation: Revise arbitration and mediation clauses in agreements.
- Educate Your Team: Conduct internal training and client seminars clarifying SB 940’s arbitration and mediation provisions.
Staying Ahead of Legislative Changes
Keeping informed positions you as a knowledgeable advocate. By proactively adapting, family law professionals can successfully navigate California’s evolving legal landscape, enhancing client satisfaction and practice success in 2025 and beyond.