A family settlement agreement or a family compromise agreement is a legal stop document that records the statement of all family members who agree upon common terms and conditions and work according to the agreement to tackle any foreseeable dispute that may arise. Attestation from all family members is required in a family settlement agreement as it a sure that the agreement is made with the consent of all the family members and was not forced upon them and no intention or any fraudulent means were used. With the consent of all the family members, the agreement is sealed. A family settlement agreement is drafted like a property deed and is attested and notified by the government authorities.

Through a family settlement agreement, one can settle all family disputes out of the court premises and any major approvals or acceptance from any 3rd party is not required.

A family settlement Agreement will supersede any other instrument that assigns or create inheritance rights as long as all the requirements for valid execution are met. A family settlement agreement should be made with bona fide intention to resolve family property disputes and rival claims to be a fair and equitable division or allotment of properties between various members. Free consent of all the family members must be present and the settlement must be voluntary and should not be induced bike version, undue influence, or fraud. The settlement agreement should pay attention to family arrangements. The agreement should acknowledge the antecedent title of some sort in the parties. The parties to the family settlement agreement must state their intention that the agreement would supersede avail to avoid any confusion or dispute that may arise later, the statement of supersession shows the intention of the family members to surrender their existing right to the property.
A family settlement agreement should have details of the participating members, any foreseeable matters of dispute that may arise, the purpose of forming the family settlement agreement, details of all the assets, security are, properties etcetera, all the property available for division, the ratio of the property division, terms and conditions, resolution, consequences of the breach of contract, signatures, and declarations of the party, And proper legal attestation.

A family settlement is a conciliation process where a lawyer or a senior family member helps the family in dispute to reach a mutually acceptable solution to the property dispute. A family settlement agreement need not be strictly a single document it can be a series of documents that are incorporating the distribution of assets and stating the property rights of deep parties to the agreement or each family member.

A family settlement agreement need not be compulsorily registered and it does not create rights in itself and it will only require registration if it creates any new interest in the family property. When the agreement alto’s legal rights of the heirs of the properties then the agreement needs to be registered under Section 17 of the registration act. Supreme Court, in the year 1966 case of Tek Bahadur versus Debi Singh, was held that an oral family settlement agreement is also valid and registration may only be required when the agreement is written.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.