After discussing theories of dispute resolution and the theory of bargaining during divorce, the nature of divorce mediation, particularly the linking of legal and psychological issues, is considered. Elements of successful mediation are identified, including helping the parties achieve financial and psychological independence and determining arrangements for child custody and visitation. Attention is given to the legal and financial knowledge needed for divorce mediation. A separate section is devoted to the scope and accountability of court-related mediation. Court-related mediation laws generally specify that mediators have knowledge of family law and court procedure, although they may restrict the scope of mediation to child custody and visitation. The advantages of using a private mental health professional or an attorney as a mediator are mentioned, such as choice of mediator, freedom from coercion, and freedom to negotiate all the issues to be decided without pressure to separate them. Further, consideration is given to whether private mental health mediation of finances in a divorce settlement constitutes the unauthorized practice of law as some have charged. Concluding sections discuss obstacles to successful mediation, the advantages of using the mediation structure for divorce settlements rather than adversarial law, and ethical constraints on the lawyer as mediator. Thirty-one references are provided.