diff --git a/core/src/main/java/bisq/core/support/dispute/arbitration/ArbitrationManager.java b/core/src/main/java/bisq/core/support/dispute/arbitration/ArbitrationManager.java
index 0471d6f05a..8dc61f8414 100644
--- a/core/src/main/java/bisq/core/support/dispute/arbitration/ArbitrationManager.java
+++ b/core/src/main/java/bisq/core/support/dispute/arbitration/ArbitrationManager.java
@@ -65,6 +65,7 @@ import com.google.common.base.Preconditions;
 import java.math.BigInteger;
 
 import java.util.Arrays;
+import java.util.List;
 import java.util.Optional;
 import java.util.UUID;
 
@@ -618,12 +619,10 @@ public final class ArbitrationManager extends DisputeManager<ArbitrationDisputeL
 
       // TODO (woodser): include arbitration fee
       //System.out.println("Creating feeEstimateTx!");
-      MoneroTxWallet feeEstimateTx = multisigWallet.createTx(new MoneroTxConfig()
-              .setAccountIndex(0)
-              .addDestination(buyerPayoutAddress, buyerPayoutAmount.multiply(BigInteger.valueOf(4)).divide(BigInteger.valueOf(5))) // reduce payment amount to compute fee of similar tx
-              .addDestination(sellerPayoutAddress, sellerPayoutAmount.multiply(BigInteger.valueOf(4)).divide(BigInteger.valueOf(5)))
-              .setRelay(false)
-      );
+      MoneroTxConfig txConfig = new MoneroTxConfig().setAccountIndex(0).setRelay(false);
+      if (buyerPayoutAmount.compareTo(BigInteger.ZERO) == 1) txConfig.addDestination(buyerPayoutAddress, buyerPayoutAmount.multiply(BigInteger.valueOf(4)).divide(BigInteger.valueOf(5))); // reduce payment amount to compute fee of similar tx
+      if (sellerPayoutAmount.compareTo(BigInteger.ZERO) == 1) txConfig.addDestination(sellerPayoutAddress, sellerPayoutAmount.multiply(BigInteger.valueOf(4)).divide(BigInteger.valueOf(5)));
+      MoneroTxWallet feeEstimateTx = multisigWallet.createTx(txConfig);
 
       System.out.println("Created fee estimate tx!");
       System.out.println(feeEstimateTx);
@@ -632,16 +631,21 @@ public final class ArbitrationManager extends DisputeManager<ArbitrationDisputeL
       // attempt to create payout tx by increasing estimated fee until successful
       MoneroTxWallet payoutTx = null;
       int numAttempts = 0;
+      int feeDivisor = 0; // adjust fee divisor based on number of payout destinations
+      if (buyerPayoutAmount.compareTo(BigInteger.ZERO) == 1) feeDivisor += 1;
+      if (sellerPayoutAmount.compareTo(BigInteger.ZERO) == 1) feeDivisor += 1;
+
       while (payoutTx == null && numAttempts < 50) {
         BigInteger feeEstimate = feeEstimateTx.getFee().add(feeEstimateTx.getFee().multiply(BigInteger.valueOf(numAttempts)).divide(BigInteger.valueOf(10))); // add 1/10 of fee until tx is successful
+        txConfig = new MoneroTxConfig().setAccountIndex(0).setRelay(false);
+        if (buyerPayoutAmount.compareTo(BigInteger.ZERO) == 1) txConfig.addDestination(buyerPayoutAddress, buyerPayoutAmount.subtract(feeEstimate.divide(BigInteger.valueOf(feeDivisor)))); // split fee subtracted from each payout amount
+        if (sellerPayoutAmount.compareTo(BigInteger.ZERO) == 1) txConfig.addDestination(sellerPayoutAddress, sellerPayoutAmount.subtract(feeEstimate.divide(BigInteger.valueOf(feeDivisor))));
         try {
           numAttempts++;
-          payoutTx = multisigWallet.createTx(new MoneroTxConfig()
-                  .setAccountIndex(0)
-                  .addDestination(buyerPayoutAddress, buyerPayoutAmount.subtract(feeEstimate.divide(BigInteger.valueOf(2)))) // split fee subtracted from each payout amount
-                  .addDestination(sellerPayoutAddress, sellerPayoutAmount.subtract(feeEstimate.divide(BigInteger.valueOf(2))))
-                  .setRelay(false));
+          payoutTx = multisigWallet.createTx(txConfig);
         } catch (MoneroError e) {
+            System.out.println(e.toString());
+            System.out.println(e.getStackTrace());
           // exception expected // TODO: better way of estimating fee?
         }
       }
@@ -677,32 +681,36 @@ public final class ArbitrationManager extends DisputeManager<ArbitrationDisputeL
       MoneroTxWallet arbitratorSignedPayoutTx = parsedTxSet.getTxs().get(0);
       System.out.println("Parsed arbitrator-signed payout tx:\n" + arbitratorSignedPayoutTx);
 
-      // verify payout tx has exactly 2 destinations
-      if (arbitratorSignedPayoutTx.getOutgoingTransfer() == null || arbitratorSignedPayoutTx.getOutgoingTransfer().getDestinations() == null || arbitratorSignedPayoutTx.getOutgoingTransfer().getDestinations().size() != 2) throw new RuntimeException("Buyer-signed payout tx does not have exactly two destinations");
+      // verify payout tx has 1 or 2 destinations
+      int numDestinations = arbitratorSignedPayoutTx.getOutgoingTransfer() == null || arbitratorSignedPayoutTx.getOutgoingTransfer().getDestinations() == null ? 0 : arbitratorSignedPayoutTx.getOutgoingTransfer().getDestinations().size();
+      if (numDestinations != 1 && numDestinations != 2) throw new RuntimeException("Buyer-signed payout tx does not have 1 or 2 destinations");
 
       // get buyer and seller destinations (order not preserved)
-      boolean buyerFirst = arbitratorSignedPayoutTx.getOutgoingTransfer().getDestinations().get(0).getAddress().equals(contract.getBuyerPayoutAddressString());
-      MoneroDestination buyerPayoutDestination = arbitratorSignedPayoutTx.getOutgoingTransfer().getDestinations().get(buyerFirst ? 0 : 1);
-      MoneroDestination sellerPayoutDestination = arbitratorSignedPayoutTx.getOutgoingTransfer().getDestinations().get(buyerFirst ? 1 : 0);
+      List<MoneroDestination> destinations = arbitratorSignedPayoutTx.getOutgoingTransfer().getDestinations();
+      boolean buyerFirst = destinations.get(0).getAddress().equals(contract.getBuyerPayoutAddressString());
+      MoneroDestination buyerPayoutDestination = buyerFirst ? destinations.get(0) : numDestinations == 2 ? destinations.get(1) : null;
+      MoneroDestination sellerPayoutDestination = buyerFirst ? (numDestinations == 2 ? destinations.get(1) : null) : destinations.get(0);
 
       // verify payout addresses
-      if (!buyerPayoutDestination.getAddress().equals(contract.getBuyerPayoutAddressString())) throw new RuntimeException("Buyer payout address does not match contract");
-      if (!sellerPayoutDestination.getAddress().equals(contract.getSellerPayoutAddressString())) throw new RuntimeException("Seller payout address does not match contract");
+      if (buyerPayoutDestination != null && !buyerPayoutDestination.getAddress().equals(contract.getBuyerPayoutAddressString())) throw new RuntimeException("Buyer payout address does not match contract");
+      if (sellerPayoutDestination != null && !sellerPayoutDestination.getAddress().equals(contract.getSellerPayoutAddressString())) throw new RuntimeException("Seller payout address does not match contract");
 
       // verify change address is multisig's primary address
       if (!arbitratorSignedPayoutTx.getChangeAddress().equals(multisigWallet.getPrimaryAddress())) throw new RuntimeException("Change address is not multisig wallet's primary address");
-
+      
       // verify sum of outputs = destination amounts + change amount
-      if (!arbitratorSignedPayoutTx.getOutputSum().equals(buyerPayoutDestination.getAmount().add(sellerPayoutDestination.getAmount()).add(arbitratorSignedPayoutTx.getChangeAmount()))) throw new RuntimeException("Sum of outputs != destination amounts + change amount");
+      BigInteger destinationSum = (buyerPayoutDestination == null ? BigInteger.ZERO : buyerPayoutDestination.getAmount()).add(sellerPayoutDestination == null ? BigInteger.ZERO : sellerPayoutDestination.getAmount());
+      if (!arbitratorSignedPayoutTx.getOutputSum().equals(destinationSum.add(arbitratorSignedPayoutTx.getChangeAmount()))) throw new RuntimeException("Sum of outputs != destination amounts + change amount");
 
       // verify buyer destination amount is payout amount - 1/2 tx costs
-      BigInteger txCost = arbitratorSignedPayoutTx.getFee().add(arbitratorSignedPayoutTx.getChangeAmount());
-      BigInteger expectedBuyerPayout = buyerPayoutAmount.subtract(txCost.divide(BigInteger.valueOf(2)));
-
-      System.out.println("Dispute buyer payout amount: " + buyerPayoutAmount);
-      System.out.println("Tx cost: " + txCost);
-      System.out.println("Buyer destination payout amount: " + buyerPayoutDestination.getAmount());
-
+      if (buyerPayoutDestination != null) {
+          BigInteger txCost = arbitratorSignedPayoutTx.getFee().add(arbitratorSignedPayoutTx.getChangeAmount());
+          BigInteger expectedBuyerPayout = buyerPayoutAmount.subtract(txCost.divide(BigInteger.valueOf(2)));
+          
+          System.out.println("Dispute buyer payout amount: " + buyerPayoutAmount);
+          System.out.println("Tx cost: " + txCost);
+          System.out.println("Buyer destination payout amount: " + buyerPayoutDestination.getAmount());
+      }
 
       // payout amount is dispute payout amount - 1/2 tx cost - deposit tx fee