Mediation is a process where the parties in a divorce or other dispute can talk about their concerns with a neutral party, with an eye toward working out an agreement.
This is not arbitration, in that the mediator does not make decisions for the parties. Mediation is almost always quicker, less acrimonious, and less expensive than going through the court process.
It has been said that a successful divorce is one where the persons can dance at their children's wedding. If this is the sort of divorce you want, then mediation may be right for you.