Partition through family settlement and its procedure

It is very common for family members to have disputes among them concerning property which could often lead to hostility. Despite the nature of the property being self-acquired or inherited, any conflict of interest pertaining to property can lead to controversy and indelible problems. However, by working with a legal professional with considerable experience in family property disputes, one stands a fair chance to resolve the dispute quickly and effectively.

What are property disputes common amongst family members?

The family disputes that are most common to arise over property include:

1) Passing of property i.e. inheritance to heirs through a will or to surviving members who are joint tenants after the passing of a family member.

2) Family disputes pertaining to the partition of property by the rightful owners.

3) Purchasing of property jointly with family members.  

Kinds of Disputes:

1. Disputes over inherited property: Inheriting a property as heirs under a will or to joint tenants once a family member passes away creates the scope of a potential dispute with respect to future management and ownership. Time and again, this might happen due to the reason that the joint-heirs or owners might have a separate goal for the inherited property. This might also happen because the heirs might grow resentment against each with respect to the inherited property. Another reason for disputes over inherited property might be a difference in the legal interpretation in the reading of the will.

2. Disputes over partition: A deed of partition ensures that each member of the family receives one’s rightful share. However, any existing of a past souring of relations among family members can lead to a forced partition. Every partition of property comes with its own legal and financial implications. With partition, joint ownership comes to an end.

3.  Purchasing of property jointly with family members: Sometimes family members purchase property together for various reasons like investing in real estate or for shared ownership. However, despite the fact the joint purchase has been effectuated with a family member, such purchases can lead to divergence in interests and the deal can go sour.

Get Legal Advice Now

What is a family settlement?

When a dispute over property arises in a family, the most common course of action adopted by the family members can be the recourse to courts for settlement of the dispute. However, going to a court of law has the risk of souring the relations even more. Thus, to preserve the sanctity of family relations, it is recommended to opt for family settlement as a method of dispute resolution. According to Black’s Law Dictionary, a family settlement means “An informal agreement among family members usually to distribute property in a manner other than what the law provides for.” The purpose and object behind an out of court arrangement like a family settlement is to maintain and preserve the harmony and unison among family members and to avoid any further future conflicts; which is a major reason behind marring of family relations. It also helps in avoiding the long drawn litigation in a court.  

Partition through Family Settlement agreement

Partition through family settlement is different from partition through a partition deed. A thin line of difference between partition and family arrangement lies in the fact that partition is a legal and a formal step for division of family by a partition deed and its compulsory registration; however, a family arrangement entails an amicable and a rather informal process of division among family members with no need of a compulsory registration. If a family settlement is reduced to writing, registration of the same would become necessary according to a Supreme Court ruling in Kale and Ors. v. Deputy Director of Consolidation and Others.

The procedure of Family Settlement

A family is an amicable and peaceful process whereby either a lawyer or a third person, either a lawyer or a chosen mediator helps the members arrive at a jointly acceptable solution to the property dispute. Another process of family settlement can be through the execution of a series of documents detailing the right of family members with respect to the disputed property.  A family settlement cannot be executed with respect to a self-acquired property in the lifetime of a person who acquired it. However, after the death of such person, the self-acquired property automatically becomes a part of the ancestral estate.

Legal Requirements for Family Settlement:

There are certain pre-requisites that are applicable with respect to a family settlement arrangement.

∙  Firstly, there must exist assets that are a part of a common pool.

∙  Secondly, there must exist an antecedent right or title over such assets.

∙  Thirdly, the arrangement in the form of deed spells out the title and right of the parties along with an acknowledgement.

∙  Fourthly, the arrangement must be voluntary in nature and not induced by undue pressure/influence or fraud.

Thereafter, each member is required to relinquish rights or title over any asset/property other than the share falling in his/her part.  A conveyance deed recognising the transfer of rights over the transferred assets is however not required under the family arrangement.

The author of this blog is Adv. Aman inani having an experience of 1+ years in handling family dispute related matters from his experience he wants to share this beneficial information for the individuals having any issues with respect to property related matters.

Why would you need Lawtendo's assistance?

In the process of family settlement, you might need a lawyer to act as a mediator between the family members for settlement of the legal dispute and for the drafting of relinquishment deed and a draft of family settlement.  Lawtendo is an intuitive online platform that makes it speedier and simpler to discover and contact the finest Attorneys in any city/court in India.  With its list of empanelled legal professionals who have represented clients in various family law matters including out of court settlements like a family settlement, Lawtendo can prove to be an asset and save you from an indefinite legal struggle.